FLOUR MILLING INDUSTRY IN BANGLADESH: FLOURISHING THROUGH AUTOMATION
Bangladesh is mainly a rice-consuming country, but flour is the second most important staple food in Bangladesh after rice, meaning flour is a crucial part of our national food security. Hence, flour milling plays a significant role in ensuring food sufficiency in Bangladesh. Though it started with a traditional milling process called “chakki”, now the industry is flourishing through automation.
According to the Bangladesh Bureau of Statistics Household Income and Expenditure Survey (HIES, 2005–2016), daily per capita wheat consumption was 12.08 g in 2005 and 19.83 g in 2016. This growing consumption pattern implies a higher demand for flour in Bangladesh. Moreover, urbanisation, the increasing popularity of fast food, and changing lifestyles have all increased the demand for flour over the years. In recent years, many fast-moving consumer goods (FMCG) companies have started exporting flour-based products, like bakery goods, in addition to serving the domestic market. One of the major challenges faced by the industry is high import dependency. Russia and Ukraine produce 30% of the world’s wheat. These two nations provide 40% of Bangladesh’s wheat imports. Shockingly, the current war between Russia and Ukraine has had a destabilising effect on the country’s wheat supply, causing price volatility and uncertainty. Clearly, the future of wheat and flour milling in Bangladesh depends on trade wars, agriculture policy, and the use of modern technologies.
The flour milling industry in Bangladesh has to become more productive by adopting efficient business models. Most importantly, the industry needs policy support to deal with prevailing issues like reliance on imports, power shortages, financial hardship, etc., to flourish and sustain in the long run.
Md. Shah Jalal
Assistant Manager
IDLC Finance Ltd.
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