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Native merchants and manufacturing unit house owners have been hit exhausting by the federal government’s abrupt resolution to halt the export of rice bran oil.
Within the one month for the reason that ban was imposed on 24 Could, they’ve misplaced a minimum of Tk154 crore in overseas alternate earnings. As well as, a minimum of 1 lakh staff and staff immediately concerned on this trade have develop into unemployed.
In keeping with the Export Promotion Bureau (EPB), round 20,000 tonnes of rice bran oil (crude) have been exported to India, China, Australia, america, the UK, Japan, France and different international locations within the 2017-18 monetary yr.
Rice bran oil is extracted from the exhausting outer brown layer of rice known as chaff (rice husk). This number of edible oil is extra in style in developed international locations than soybean or palm oil. Nonetheless, the demand for rice bran oil is low in Bangladesh though it’s produced right here.
Rice bran oil started to attract customers’ consideration lately with the sharp rise in soybean and palm oil costs.
The Ministry of Commerce on 24 Could issued a letter banning the export of rice bran oil, which got here as a shock to the trade. Manufacturing of the oil in native mills got here to a standstill.
There are 17 mills within the nation that produce rice bran oil. Of those, 9 are in Rajshahi division, two in Rangpur, two in Mymensingh, three in Dhaka and one in Cumilla.
Chitta Majumdar, managing director of Majumdar Merchandise Restricted, a rice bran oil manufacturing unit established in Bogura in 2012, mentioned, “Since 2015, we now have been exporting crude rice bran oil primarily to India. My mill produces 150-160 tonnes of oil each day, all of that are exported to India. However now manufacturing has been halted as a result of authorities ban.”
“In the beginning, I spent Tk7 crore in commercials aimed toward capturing the marketplace for rice bran oil. On the identical time, I equipped Tk8 crore price of merchandise to the market on credit score. However folks don’t purchase this oil and the value can also be comparatively increased than that of soybean oil,” he added.
Majumdar Merchandise Ltd exports round 3,000 tonnes of crude rice bran oil per thirty days, with a market worth of round Tk42 lakh.
Chitta Majumdar mentioned, “Apart from producing oil, a minimum of 560 tonnes of de-oiled rice bran is made each month, which is used as meals for fish, animals and birds.”
“The choice to ban the export of rice bran oil by the federal government will result in a rise within the worth of our de-oiled rice bran. Some 2,500 staff have misplaced their jobs in my manufacturing unit. The social gathering which concluded an settlement with us on crude rice bran oil provide can also be placing stress on us,” he added.
Bogura’s Tamim Agro Restricted produces greater than 60 tonnes of crude rice bran oil a day. Following the export ban, all the ten reserve tanks of the corporate are actually stuffed with refined oil, leaving the corporate with none extra space to retailer oil.
In keeping with the Bangladesh Rice Bran Oil Mills Affiliation, the nation’s annual demand for edible oil is 25 to 30 lakh tonnes. Rice bran oil manufacturing is about 2.5 lakh tonnes. Not less than Tk1,859 crore or $200 million price of this oil selection is exported per yr. On the identical time, 13 lakh tonnes of de-oiled rice bran are produced per yr.
Prakash Dutta, normal secretary of the Bangladesh Rice Bran Oil Mills Affiliation and managing director of Agrotech Worldwide Restricted, mentioned, “The federal government ordered a halt to the export of rice bran crude oil with out consulting us. On account of the unilateral resolution, the merchants are dealing with catastrophe.”
“They’re being compelled to shut down their factories. The nation is being disadvantaged of overseas alternate. Apart from, about one lakh folks concerned on this trade have develop into unemployed,” he added.
In keeping with the federal government’s resolution, rice bran oil will likely be offered by way of vans of the Buying and selling Company Bangladesh.
Abdul Aziz Mia, president of the Bangladesh Rice Bran Nicely Mills Affiliation, mentioned, “How can we refine this oil abruptly? Additionally it is troublesome to bottle. Some factories have 600 to 2,000 tonnes of crude rice bran oil in inventory. The sudden resolution places us all in danger.”
Mentioning {that a} letter has been despatched to the federal government to withdraw the choice on the export ban, Abdul Aziz Mia mentioned, “There isn’t any marketplace for this oil within the nation. What’s the good thing about stopping exports?”
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