Chittagong is the only sea port of the country being used for import of crude palm oil/olein along with other crude edible oils. There are 5 bulk tanking facilities with combined storage capacity of 300,000 MT, situated within custom bonded area of Chittagong port, where crude/refined palm oil/olein imported in bulk are being stored along with other crude edible oils.

Geographical location of Bangladesh 

For last few years, palm oil has been occupying about 60-70% share of country’s annual import of edible oils. Palm oil has better compatibility as cooking oil and also as an important ingredient in food industries. Its price competitiveness, change of food habit of the consumers and stagnant local production of edible oils etc. are contributing together in the increase in import of palm oil vis-à-vis consumption. The palm oil import culminated to 1,023,128 tonnes in 2009 setting a milestone in country’s edible oil import scenario. However, in 2010, the import volume of palm oil declined to 930,147 tonnes due to higher price in the international market. Although the palm oil import declined in 2010, it was still about 65% of the total import of edible oils and fats during the period. Crude Palm Olein (CPL), Crude Palm Oil (CPO) and RBD Palm Olein (RBD PL) are the three types of palm oil that are imported in Bangladesh, among which CPL is the major type. In 2010, the import share of CPO, CPL and RBD PL were in the ratio 10:77:13.

Presently, the country has a refining capacity of over 3 million tonnes of refined oils per annum. As on today, dozens of palm oil refining plants equipped with latest “Programmable Logic Controlled” equipments having refining capacity ranging from 300-1000 tonnes per day each, are in operation in the country and producing world class refined olein and super olein. Refineries are situated in and around Dhaka and Chittagong city. About 60% of the annual consumption of palm oil is super olein, which is a very high quality of palm oil. Refined olein is used in food processing industries and cooking oil as well while super olein is used only as cooking oil.

Besides refined olein and soyabean oil, about 150,000 tonnes of mustard/canola oil is also consumed annually, about 50% of which is obtained from locally grown oil seed crop and the rest 50% is imported. The entire quantity of canola/mustard oil is consumed in virgin form as its colour and pungent smell as well is preferred by the consumers. Mostly primitive ghanis and expellers are used for extraction of oils from oilseeds. Country’s first solvent extraction plant for extraction of oil from oilseeds, namely, soyabean and canola/mustard was established in 2004 with an annual crushing capacity of half million tonnes but until now capacity utilization never exceeded 25%. Another two solvent extraction plants, each of crushing capacity of 900,000 tonnes annually, are under installation and would enter into production in 2011 and 2012.