How Bangladesh can achieve edible oil self-sufficiency with local alternatives
"Bangladesh has a huge potential for rice bran oil," said Afzal Hossain, managing director of Emerald Oil, the first rice bran oil producer in Bangladesh which marketed its product under the brand name "Spondon".
"It is possible to increase the production of oil fast if the crises of raw materials and gas can be overcome with a proper plan."
Mentioning that many companies, including Emerald Oil, had halted their production due to the crises, he told The Business Standard that government support with uninterrupted gas supply could revive the sector.
"Shortage of quality rice bran is the key barrier, for which we have to keep our production stopped for a long time every year," said Subhash Kundu, general manager of Jamuna Agro Products Limited.
Potential of mustard, sunflower, and perilla oil
An India-based commodity market research firm – Mordor Intelligence – recently conducted two studies on mustard oil markets, in which it was noted that Bangladesh has been witnessing decent growth in demand for mustard oil. The studies also forecast a 5.6-5.8% growth for the country until at least 2027.
"During the post-lockdown period, there has been a significant shift in food consumption patterns. Dining out became much less popular, and people began to prefer home-cooked meals by experimenting with new recipes. As a result, demand for household edible oil packs such as mustard oil increased."
To cater to the growing demand, more commodity giants might come to invest in mustard oil production, according to Mordor Intelligence.
Currently, Pran, Wilmar International, Ovijat Food and Beverage Industries, Bangladesh Edible Oil, Partex Star Group, City Group, Aci, Square Food and Beverage, Orion Group and Farmroots are manufacturing mustard oil. Besides, many small-scale entrepreneurs have been producing non-brand mustard oil.
Apart from mustard, the production of sunflower and the less-popular perilla seeds also can be boosted, believe agricultural economists.
Some farmers have already started cultivating perilla to make higher profits as the seeds have good demand in global markets. This year, the seed has been cultivated on 200 hectres of land.
HM Tariq Hossain, professor of agronomy at Sher-e-Bangla Agricultural University, told The Business Standard that some higher-income group people were used to taking perilla oil, which is currently import-dependent.
"Increased perilla cultivation can meet local demand and can be exported as well," he told TBS.
