More than 90 percent of the country's palm oil comes from Indonesia

More than 90 percent of the country's palm oil comes from Indonesia. Once upon a time, the name of Malaysia used to be palm oil. At present, the Malaysian Palm Oil Council (MPOC) has lost its market share and lost its office in Bangladesh.

Concerned people say that the main reason for the loss of Bangladeshi market in Malaysia is the difference in price.


Indonesia's oil import costs are lower. However, importers say the change began 10 years ago.
According to the port of Chittagong, the import of palm oil from Indonesia has increased regularly except for one or two years before 2020. The growth rate is 12 to 16 percent per year. This situation is due to Indonesia's policy of increasing production and expanding the market.


According to a recent study by the Bangladesh Food Safety Authority, the country imported a total of 2.85 million tonnes of edible oil in 2020-21. About 60 percent of imported palm oil comes from Indonesia and 20 percent from Malaysia.

According to AKM Fakhrul Alam, former regional manager of the now defunct Malaysian Palm Oil Council, the ratio of imports from Malaysia is even lower. According to him, 92 percent of the country's palm oil imports in 2021 came from Indonesia. The remaining 6 percent has been imported from Malaysia.

At that time a total of 13 lakh 8 thousand tons of palm oil was imported. Last year, the market ratio between the two countries was 90 and 10 percent. Until 2006, Malaysia was able to maintain their market influence.

According to the import data of Bangladesh Bank, in 2006-07, palm oil came to the country from Malaysia amounting to Tk 808 crore or 44 percent. In contrast, the equivalent of one thousand five crore rupees or 56 percent comes from Indonesia. The following year, in 2006-07, palm oil imports from Malaysia amounted to Tk 1,194 crore or 42 percent. In that year, the import from Indonesia was one thousand 751 crore taka or 52 percent.
According to the same source, in 2010-11, 60 percent of the total palm oil was imported from Indonesia. The remaining 20 percent comes from Malaysia. At that time, oil worth Rs 961 crore was imported from Malaysia. In contrast, imports from Indonesia amounted to Tk 3,600 crore. Then the image gradually changes.

A visit to the office of the Malaysian Palm Oil Council at Amin Court in the capital's Motijheel recently showed that an organization from another country called Ake Trading had started operations there. Former officials of the council say that they have stopped their activities here as the business in the country's market has become very limited.

The country imports twice as much palm oil as soybean oil. Although soybean oil is used only in cooking, palm oil is also used in cooking and industrial production. Palm oil is used in many bakery biscuits, cakes, and cosmetics, including soaps and lotions.