Impressive Growth in Import of Palm Oil In First Half of 2018

Import of palm oil experienced an impressive growth of 22% in the first half of 2018 compared to corresponding period of 2017. During Jan.- Jun. period of 2018, import of RBD PO/PL was 812,625 tonnes, which comprise of 97% RBD Olein and 3% RBD PO, against 666,406 tonnes, which comprises of 98.43% RBD Olein, 1.20% RBD PO and 0.37% CPL, during the corresponding period of 2017. Catagorywise import details palm oil and palm products during Jan. – June 2018 against the corresponding period of 2017 are furnished at Table 1.

table1

Against the said impressive growth of palm oil, import quantity of CDSBO, the main competitor of palm oil, during the period experienced a negative growth of about 11% compared to the corresponding period of 2017, while there was no import of canola/mustard oil, which is imported in seed form to obtain the oil through crushing locally. Total import quantity of CDSBO during Jan. – June 2018 period was 418,000 tonnes against 468,952 tonnes during the corresponding period of 2017. However, import quantity of soyabean in the first half of 2018 was 553,639 tonnes, the oil equivalent of which is 99,656 tonnes @ 18% oil extraction rate, witnessed a marginal growth of 2.93% compared to Jan.-Jun. period of 2017.

As a result of the aforesaid import scenario of major three edible oils/oilseeds, which constitutes about 96 to 97% of total annual import of oils and fats of the country, import growth of total oils and fats in the first half of 2018 was only 7.31%. During Jan.-Jun. period of 2018, import of total oils and fats was 1,374,692 tonnes against 1,281,035 tonnes during

the corresponding period of 2017. It may be mentioned here that as per Oil World Annual country is experiencing about +10% growth, on an average, in the annual import of oils and fats during last 4 years and it is expecting that said growth would continue in 2018 also and palm oil would be the major contributor in the said growth.

 

table2

 

It is worthy to mention it that Bangladesh is a liquid oil market and almost 88 -90% of its present annual consumption is in liquid form. Besides, the market is price sensitive too. Among the three major edible oils, namely palm oil, soyabean oil and mustard oil which are consumed in the country, palm oil is the dominating edible oil since 2003. Previously refined soyabean oil was the dominating edible oil of the country since early ‘60s. Market potentials for palm oil in Bangladesh are wide compared to other two edible oils mainly because of price competitiveness of palm oil. Besides, expanding market of super olein and gradual growth of processed food industries are contributing in the gradual expanding market of palm oil in the country. Super olein is sold mainly as cooking oil and very popular among the middle and lower income group of the consumers, while palm olein is mainly used by food processing industries. In pace with the economic growth of the country, demand of processed food items is also in increasing trend as the food habits are also in change in pace of economic growth. Processed food industries prefer palm olein because of its competitive price and also long shelf life of the products produced using palm oil and palm based fats.

As per Oil world annual 2019, consumption of oils and fats in Bangladesh is being increased with an average growth of about 10% per annum. The average per capita consumption of oils fats has exceeded 15 kgs in 2016, which was only 10 kgs in 2011. To meet the increasing demand, it is expected that total import of oils and fats would also increase and would reach to about 2.8 million tonnes in 2018 and 3 million tonnes in 2019. Accordingly import volume of palm oil, would also increase and expected to reach 1.55 million in 2018 and 1.65 million tonnes in 2019.