Bangladesh government decides to impose 25 percent export duty on rice bran oil

10-Feb-2025 04:58 PM

The decision to impose a 25% export duty on rice bran oil by the Bangladesh government is a strategic move aimed at ensuring the stability of edible oil prices in the domestic market, especially during the high-demand period of Ramadan.

By reducing exports, the government aims to increase the supply of rice bran oil in the country, which is considered a healthy alternative to other cooking oils.

The NBR's statement highlights that rice bran oil has the potential to meet a significant portion (25-30%) of the domestic edible oil demand, and this move should help prevent shortages and keep prices under control.

This export duty also addresses the issue of the rising price of edible oils in the country, which has been a concern for many consumers.

With soybean oil prices reaching new highs in December 2024, the government's intervention comes at a crucial time, particularly since Bangladesh relies heavily on imported oils, like crude soybean and palm oil, to meet its domestic needs.

Although Bangladesh produces a good amount of rice bran oil locally, most of it is exported, which reduces its availability for local consumption.

This new export duty will likely incentivize more local supply, contributing to the overall effort to stabilize the market and provide relief to consumers.

The timing of this decision, just before Ramadan, is particularly important since the month typically sees an increase in consumption, and a stable price and supply of essential food items like edible oils are crucial for the well-being of the population.