Bangladesh Urged to Strongly Pursue Extension of BSGI Agreement

The Bangladesh businesses are "concerned" about the growing risk that Bangladesh and other countries of the world would face if the Black Sea Grain Initiative (“BSGI”) is not renewed beyond 17 July expiry date.

The businesses, therefore, urged upon the government of Bangladesh to strongly pursue the extension of BSGI agreement for further terms as it is vital lifeline for global food security, reports UNB.

Md. Jashim Uddin, President, FBCCI, Mahbubur Rahman, President, ICC Bangladesh, Md. Sameer Sattar, President, DCCI, Md. Saiful Islam, President, MCCI, Mahbubul Alam, President, CCCI and Naser Ezaz Bijoy, President, FICCI made the call on Tuesday. 

What is Black Sea Grain Initiative and why does it matter

The BSGI has facilitated, to date, more than 32 million metric tons of foodstuffs to be exported from three Ukrainian ports to 45 countries across three continents – with the proportion of wheat exported through the Black Sea to least developed economies remaining largely unchanged from pre-war levels. 

As a direct result of this trade through the Black Sea – as well as exports of food and fertilizers from the Russian Federation – the Food and Agriculture Organization reports that global food prices have dropped by 22% since March 2022.

‘A beacon of hope’: Ukraine, Russia sign grain export deal  

Crucially, the World Food Programme is once again procuring wheat from Ukraine at the same volumes as in 2021 – purchasing nearly 700,000 tons through the Black Sea Grain Initiative to support humanitarian operations in Afghanistan, Ethiopia, Kenya, Somalia, Sudan and Yemen, said the Bangladeshi businesses.

Continued facilitation of Ukrainian and Russian exports of food and fertilizers thus remains crucial to global food security. By extension, any lapse in the BSGI risks severely jeopardising the availability and affordability of food for millions around the world: a situation that will have truly damaging social, economic and – above all – human consequences, they said.