The Bangladesh Trade and Tariff Commission (BTTC) has proposed imposing a 25- percent duty on rice-bran oil exports in response to a significant rise in shipments amid the volatile domestic edible-oil market.
Over the past one and a half years, private companies exported more than 64,000 tonnes of rice bran oil, especially during the period when soybean oil prices soared to as high as Tk 200 per litre.
The BTTC's proposal aims to ensure a steady supply of edible oil in the local market. Following a ban on rice bran exports, companies changed their strategy and began producing rice bran oil to export and also sell in the local market.
To regulate the export of rice bran oil, the commission has recommended that the Ministry of Commerce approve such shipments only after receiving its recommendation.
A letter from the BTTC to the commerce ministry outlined the proposed regulation.
The commission has also sent a letter to the National Board of Revenue (NBR), urging the imposition of a higher regulatory duty on rice bran oil exports to secure an adequate supply of edible oil in the local market.
According to the letter, a 25 per cent duty on exports would help ensure an adequate supply of both refined and unrefined rice bran oil in the local market.
The BTTC believes this measure will not only stabilise rice bran oil prices but also increase its popularity as an alternative to other edible oils.
The commerce ministry reveals that Bangladesh exports rice bran oil mainly to India. Currently, 20 rice bran oil-producing companies in the country have a combined refining and packaging capacity of 300,000 tonnes annually.
In the 2023-24 fiscal year, Bangladesh exported nearly 64,020 tonnes of rice bran oil to India via the Bhomra Land Port. In the previous fiscal year, exports via Benapole were 7,300 tonnes.
According to sources, another 25,000 to 26,000 tonnes of rice bran oil was exported in the last five months, between July and November of FY25.
The commission recently submitted a report to the commerce ministry titled "Imposing Rapid Control on the Export of Rice Bran Oil to Increase the Supply of Edible Oil in the Local Market."
The report said soybean and palm oil prices had been adjusted in the wake of a surge in international edible oil prices, with that of bottled soybean oil rising by Tk 8 per litre.
Before the adjustment, edible oil producers and importers ceased the supply of soybean oil to the market, leading to a sharp price increase as soybean shot up to Tk 185-200 a litre and palm to Tk 180-185 a litre last week.
The government on December 9 fixed bottled soybean oil prices at Tk 175 per litre and loose soybean oil at Tk 157 per litre after raising prices by Tk 8-10 a litre. Most of the groceries were yet to get oil with the new price tags, said traders.
However, rice bran oil is retailed at Tk 205-215 a litre at groceries.
The BTTC said rice bran oil could play a crucial role in meeting the domestic demand for edible oil as by processing unrefined rice bran, the country could produce 0.7-0.75 million tonnes of crude rice bran oil annually, which is almost one-third of the demand.
To curb the export of raw rice bran, the government imposed a 25 per cent regulatory duty in FY20.
However, no such duty exists on rice bran oil exports, leading to substantial quantities of the oil being exported to neighbouring countries.
Bangladesh's annual demand for edible oil is between 2.2 million and 2.4 million tonnes, with 95 per cent of the requirement met through imports.
tonmoy.wardad@gmail.com