SOHEL PARVEZ

The United States has become Bangladesh’s top soybean supplier, as private importers increased purchases under a reciprocal trade deal and US prices eased earlier in the year when Chinese demand briefly slowed.

In the first eight months of marketing year (MY) 2025-26, the US supplied 84 percent of Bangladesh’s soybean imports, up from 48 percent a year earlier, according to the US Department of Agriculture (USDA).

Bangladesh produces only about 7 percent of its annual soybean requirement, mainly in coastal districts. The rest comes from abroad.

In the July-February period of MY26, the country imported 13.5 tonnes of soybeans, USDA said in a report on Bangladesh oilseeds and products published last month. Of that, 11.3 tonnes came from the US, while Brazil supplied the remaining 16 percent.

The surge in imports followed Dhaka’s decision to buy more American farm goods under a reciprocal trade agreement. The package covers wheat, soybeans and soy products, as well as cotton, with an estimated total value of $3.5 billion.

As per the deal, Bangladesh agreed to purchase at least 700,000 tonnes of wheat a year for five years and at least $1.25 billion, or 26 lakh tonnes, of soybeans over one year.

The agreement drew criticism at home and stirred concern among businesses.

It came after the Trump administration cut the reciprocal tariff on Bangladeshi exports to the American market to 19 percent from an initial 37 percent imposed in April last year, citing efforts to narrow the US trade deficit. Bangladesh runs a trade surplus with the US.

In August last year, Washington set the rate at 20 percent on shipments from Bangladesh after the interim government agreed to buy 25 Boeing aircraft, 35 lakh tonnes of American wheat over the next five years, and increase imports of US cotton, liquefied natural gas (LNG), soybeans and other agricultural products.

Annual demand for edible oil in Bangladesh stands at about 48 lakh tonnes, with palm oil and soybean oil dominating the market because of their availability and relatively low prices.

In November, three major local soy crushing firms, Meghna Group of Industries, City Group and Delta Agro, committed to purchase $1 billion worth of American soybeans over the next one year, boosting prospects for US exports.

Bangladesh depends heavily on imports to meet edible oil demand because domestic output is limited. Local production meets only about 10 percent of the country’s total requirement, according to USDA estimates.

The USDA said four oilseed crushing mills are now operating in Bangladesh. Domestic crushers supply about one-fourth of the country’s soybean oil demand of 17 lakh tonnes, with the remaining 75 percent imported as crude soybean oil and refined at home.

The agency said local crushers earn most of their profits from soybean meal rather than oil.