Bangladesh looks to ramp up rice bran, mustard oil production to cut dependency on import

The government is looking to ramp up the production of rice bran and mustard oil to reduce dependency on the international market for cooking oil amid a shortage and a hike in prices, the commerce minister has said.

“We’re trying to reduce dependency on palm and soybean oil by ramping up the production of locally made rice bran and mustard oil,” Tipu Munshi said on Wednesday, noting that Bangladesh imports almost 90 percent of the cooking oil it needs from the international market.

He said Bangladesh currently produces 50,000-60,000 tonnes of rice bran oil annually and it is possible to raise the production to 700,000 tonnes “easily”.

"People should be informed about the benefits of using rice bran oil. Doctors should speak up about this," he said in a meeting of the task force to control prices.

The Russian invasion of Ukraine caused a hike in oil prices amid the coronavirus pandemic. The government reduced the value-added tax, or VAT, and duty on imports of cooking oil to tackle the situation.

The measures had made the market stable but soybean oil vanished from shelves ahead of Eid-ul-Fitr, forcing the authorities to increase the price of cooking oil by up to Tk 40 per litre.

Operations by the National Consumer Rights Protection Directorate revealed many traders are hoarding hundreds of thousands of litres of cooking oil with an intention to sell them at a higher price.

The task force also discussed the prices and supply of onion, wheat and salt.

The minister brushed aside “rumours” that India's ban on wheat exports will impact Bangladesh.

"The ban doesn't apply to Bangladesh," Munshi said, citing the Bangladesh High Commission in India.

"Wheat import from India is ongoing under the government-to-government arrangement. The opportunity is open to private organisations as well."

The current stock of wheat is also enough to meet demand in the local market, the minister claimed.