Import of edible oil by Bangladesh increased significantly in the 2006, which also saw exorbitant price hike of the essential kitchen commodity. Market analysts observe that the rising consumption of edible oil mainly by the rural population, having expansion of their buying capacity in recent times, have prompted its import in greater volume.

According to their opinion, illustrated demand of edible oil in Bangladesh has brought opportunity for the global growers of soybean and palm, as the supply of edible oil in local market depends, almost entirely, on import.

In 2006 Bangladeshi oil millers imported some 1.27 million tonnes of crude edible oil, which is about 17 per cent more than 2005’s volume of 1.09 million tonnes. During the period, the Bangladeshi oil refiners imported about 0.88 million tonnes of crude palm oil, 0.32 million tonnes of crude soybean oil and 0.05 million tonnes of mustard oil seeds. Bangladesh emerged as one of the top six importers of palm oil around the world.

The annual average per capita consumption of edible oil in village is now about 4.5 kilograms against 3.5 kilograms a couple of years back. In urban areas the average is about 8 kilograms. Per capita consumption in Bangladesh, however, still remains far below the prescribed health standard (Bangladesh national health standard requires annual feed at 9 kilogrms).

The averages in other countries are much higher: 12 kilograms in India, 16 kilograms in Pakistan and 45 kilograms in USA. Industry sources estimate, the country’s spending on edible oil imports in 2006 would near $0.8 billion. In the international market the prices of crude palm and soybean oils ranged between $550 and $700 per tonne in 2006 increasing at least by 20 per cent on average over the year.