Government imposes 25% export duty on rice bran oil to stabilise market

The NBR is optimistic about stabilising the local edible oil market through domestic availability

The interim government has imposed a 25 percent export duty on rice bran oil, following unsuccessful efforts to stabilise edible oil prices and resolve supply shortages in the local market after the change in power.

The National Board of Revenue, or NBR, issued a statement on Sunday regarding this new duty.

It said the rice bran oil, considered "highly healthy," could potentially meet 25-30 percent of the country’s internal edible oil demand.

According to the NBR, ensuring a stable supply of locally produced rice bran oil will be key to maintaining market stability.

The move follows a price hike in edible oils in December, which saw retail prices of bottled soybean oil rise by up to Tk 8 per litre, bringing the cost to Tk 175 per litre, Tk 380 for two litres, and Tk 852 for five litres.

The retail price for loose soybean oil was set at Tk 157.

The NBR explained that edible oil is an essential food product in Bangladesh, and its supply largely depends on imports.

The majority of the country's edible oil demand is met by imported unrefined soybean and palm oils, which are then processed domestically.

Despite producing between 120,000 to 150,000 tonnes of rice bran oil annually, the majority of it is exported to neighbouring countries.

Taking into account the recommendations of the Bangladesh Trade and Tariff Commission, the revenue collection agency imposed the duty on all types of rice bran oil exports to discourage exports and retain more for domestic use.