Palm oil plays important role in meeting edible oil demand in Bangladesh
Sunday, 31 August 2008
A. K. M. Fakhrul Alam
DESPITE substantial rise in the price of edible oils in the international market in 2008, import volume of palm oil in Bangladesh increased substantially due to its competitive price compared to soyabean oil. During Jan-July period of 2008, import quantity of palm oil in Bangladesh was 520,000 tonnes, which increased by about 61% compared to the corresponding period of 2007. The import quantity of palm oil was about 74% of the total import of oils and fats during the period.
In Bangladesh, three major edible oils namely, palm oil, soyabean oil and rape/mustard oil are consumed. Palm oil and soyabean oil are imported in crude form and after refining locally, the refined products are marketed, while rape/mustard is imported in seed form, crushed locally and the virgin oil obtained is marketed thereafter. Some quantity of soyabean is also being imported since 2004, which is being crushed locally and the crude soyabean oil obtained is refined and then marketed.
Contrary to the substantial rise in import of palm oil during Jan-July period of 2008, the import volume of crude degummed soyabean oil (CDSBO), soyabean and rape/mustard seed declined respectively by 36%, 56% and 49% compared to the corresponding period of 2007. It is worth mentioning that substantially higher import of palm oil in last 7 months was able to offset the considerable decline in import of other edible oils and contributed to ease both supply and price of edible oils in the local market. In fact, palm oil is meeting lion's share of the demand of edible oils in the country since 2003 and playing a vital role in keeping stable the price as well as the supply of edible oils in the local market.
As per oil world statistics, in 2007, the consumption share of three major edible oils in Bangladesh i.e. palm oil, soyabean oil and rape/mustard oil were in the proportion; 58:34:8. It is obvious that palm oil's contribution to meeting demand of edible oil in the country is far greater than the other two major oils, which would further grow in 2008. It is worthy to mention here that seventy five per cent of the total edible oils traded in Bangladesh, is sold as loose oil of which almost 100% is palm oil, while the rest 25% of the total edible oils traded is sold in consumer packs where palm oil's share is 3.0-4.0%.
In the local market, there are 5 brands of palm oil in consumer packs namely, Natural, Meizan, Pure, Family and Dada Super. Because of increasing demand, two more brands will appear in the market in coming months and hence there would be seven brands of consumer packs of palm oil by the year end.
The Bangladesh market is an important destination for Malaysian Palm oil. In 2007, Malaysia exported various commodities to Bangladesh worth RM 1,401.40 million of which palm oil alone accounted for RM 453.7 million i.e. 32.37%.
Palm oil is now the top ranking oil globally in regards to production and export. In 2007, world oils and fats production stood at 154 million tonnes. Palm oil was the largest contributor in production, accounting for 38.2 million tonnes or 25% of the total output. Soyabean oil came in a close second with 37.5 million tonnes or 24% of the total output. In 2007, Malaysia produced 15.82 million tonnes of palm oil, which is 42% of global production of 38.2 million tonnes of palm oil and is 10.27% of the total oils and fats produced in the world.
In 2007, in global oils and fats export market, a total quantity of 57.7 million tonnes of oils and fats was traded. Palm oil again occupied the top position, accounting for 29.6 million tonnes or 51% of the global trade, while soyabean oil accounted for 19% market share. Malaysia contributed 24% of the global trade by exporting 13.7 million tonnes of palm oil. Among the world palm oil exporting countries, Malaysia maintained dominance of the palm oil trade by holding 46% of the market share.
The writer is Regional Manager for Bangladesh, Nepal & Myanmar, of Malaysian Palm Oil
DESPITE substantial rise in the price of edible oils in the international market in 2008, import volume of palm oil in Bangladesh increased substantially due to its competitive price compared to soyabean oil. During Jan-July period of 2008, import quantity of palm oil in Bangladesh was 520,000 tonnes, which increased by about 61% compared to the corresponding period of 2007. The import quantity of palm oil was about 74% of the total import of oils and fats during the period.
In Bangladesh, three major edible oils namely, palm oil, soyabean oil and rape/mustard oil are consumed. Palm oil and soyabean oil are imported in crude form and after refining locally, the refined products are marketed, while rape/mustard is imported in seed form, crushed locally and the virgin oil obtained is marketed thereafter. Some quantity of soyabean is also being imported since 2004, which is being crushed locally and the crude soyabean oil obtained is refined and then marketed.
Contrary to the substantial rise in import of palm oil during Jan-July period of 2008, the import volume of crude degummed soyabean oil (CDSBO), soyabean and rape/mustard seed declined respectively by 36%, 56% and 49% compared to the corresponding period of 2007. It is worth mentioning that substantially higher import of palm oil in last 7 months was able to offset the considerable decline in import of other edible oils and contributed to ease both supply and price of edible oils in the local market. In fact, palm oil is meeting lion's share of the demand of edible oils in the country since 2003 and playing a vital role in keeping stable the price as well as the supply of edible oils in the local market.
As per oil world statistics, in 2007, the consumption share of three major edible oils in Bangladesh i.e. palm oil, soyabean oil and rape/mustard oil were in the proportion; 58:34:8. It is obvious that palm oil's contribution to meeting demand of edible oil in the country is far greater than the other two major oils, which would further grow in 2008. It is worthy to mention here that seventy five per cent of the total edible oils traded in Bangladesh, is sold as loose oil of which almost 100% is palm oil, while the rest 25% of the total edible oils traded is sold in consumer packs where palm oil's share is 3.0-4.0%.
In the local market, there are 5 brands of palm oil in consumer packs namely, Natural, Meizan, Pure, Family and Dada Super. Because of increasing demand, two more brands will appear in the market in coming months and hence there would be seven brands of consumer packs of palm oil by the year end.
The Bangladesh market is an important destination for Malaysian Palm oil. In 2007, Malaysia exported various commodities to Bangladesh worth RM 1,401.40 million of which palm oil alone accounted for RM 453.7 million i.e. 32.37%.
Palm oil is now the top ranking oil globally in regards to production and export. In 2007, world oils and fats production stood at 154 million tonnes. Palm oil was the largest contributor in production, accounting for 38.2 million tonnes or 25% of the total output. Soyabean oil came in a close second with 37.5 million tonnes or 24% of the total output. In 2007, Malaysia produced 15.82 million tonnes of palm oil, which is 42% of global production of 38.2 million tonnes of palm oil and is 10.27% of the total oils and fats produced in the world.
In 2007, in global oils and fats export market, a total quantity of 57.7 million tonnes of oils and fats was traded. Palm oil again occupied the top position, accounting for 29.6 million tonnes or 51% of the global trade, while soyabean oil accounted for 19% market share. Malaysia contributed 24% of the global trade by exporting 13.7 million tonnes of palm oil. Among the world palm oil exporting countries, Malaysia maintained dominance of the palm oil trade by holding 46% of the market share.
The writer is Regional Manager for Bangladesh, Nepal & Myanmar, of Malaysian Palm Oil