Bangladesh's wheat imports may rise about 1 percent year-on-year to 44 lakh tonnes this fiscal year, thanks to strong domestic demand and lower international prices, according to the US Department of Agriculture.

However, rice imports may decline to 1.5 lakh tonnes, owing to an increase in import tariff on the staple, the agency said in its July issue of Grain and Feed Update on Bangladesh.

“The added 25 percent tariff on rice imports further affected import prospects,” said USDA.

Rice imports fell 83 percent to 2.57 lakh tonnes in fiscal 2015-16 after the government imposed a total of 20 percent duty last year to protect growers from losses, resulting from the falling prices of the staple, according to the food ministry.

The government raised import duty to 25 percent at the beginning of the new fiscal year from 20 percent previously. In addition, it imposed 15-percent value added tax, 5 percent advance income tax and an additional advance trade VAT of 4 percent.

“The tariff was raised and other taxes are added to stop cheaper Indian rice imports that generally constitute the largest share of the import market,” said USDA.

However, wheat imports may edge up from last year's imports, it added.

The private and public sectors imported 43.66 lakh tonnes in fiscal 2015-16, up 15 percent year-on-year, according to data from the food ministry.

Low international prices and increased demand from food manufacturers buoyed imports of the grain, said industry operators.

For the current fiscal year, the government plans to import 5 lakh tonnes of wheat, up from an actual import of 4.16 lakh tonnes last fiscal year, according to official data.