Rice bran oil millers seek export ban lifting

The country's rice bran oil millers have sought to lift the ban on crude rice bran oil shipment for six months saying that the sector has been hit hard by the bar, an industry insider said.
The government on May 24, 2022, banned crude rice bran oil export with the view to ensuring adequate supply of edible oil in the local market.
The Bangladesh Rice Bran Oil Mills Association (BRBOMA) recently requested the commerce ministry to withdraw the ban on crude rice bran oil export saying they will suffer huge losses for the bar as demand for the commodity in the local market as almost nil.
The BRBOMA sent a letter to the ministry in this regard recently.
In the letter, the millers assured to introduce refinery sections in the existing mills to ensure supply of refined rice bran oil in the local market in the next six months.
The association claimed that the mills have faced a massive financial loss and legal complexities due the government's export ban.
They explained most of the mills under the association were in the process of making advance T.T., letter of credit and contact agreement with the foreign buyers when the ban was imposed. At least three months are required to complete the process, they said. Lift the ban or else, we will have to face a financial loss and legal complexities, they added.
"We are being forced to export crude rice bran oil as there is no demand of such oil in the country either in refined or crude forms," the association noted in the letter.
Sources said, some mills already have set up refinery sections and some are yet to install such sections while some of the BRBOMA member mills have been closed for eight to ten years.
Most of machinery of those mills have been damaged, said the sources, adding for this, resuming operation in those mills will take time.
Requesting to lift the ban on crude rice bran oil shipment, the association has requested the government to impose ban on export of rice bran (raw material) to India.
BRBOMA member mills currently produce 0.343 million tonnes of crude rice bran oil annually and it is possible to raise the production to 0.514 million tonnes, a member of the association said.
Since Russian invasion of Ukraine on February 24 last, edible oil prices have been increasing in local as well as international markets.
The government also reduced the value-added tax, or VAT, and other form of duty on edible oil import with the view to checking the rising prices of the oil and keeping the local market stable.
There are 17 rice bran oil mills in the country, according to the association. These mills have 1.63 million tonnes annual rice bran processing capacity.
The mills had been exporting 1,000 tonnes of crude rice bran oil every day for 8-10 years before the export ban was imposed, according to the BRBOMA data.
On the other hand, only 800 tonnes of refined rice bran oil enter the local market every month due to a negligible demand for the same in the country.
Bangladesh earned over US $175 million by exporting crude rice bran oil in 10 months of the current fiscal year.
Currently, neighboring India is the main destination of the Bangladeshi crude rice bran oil shipment.

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