1.0 INTRODUCTION

1.1 BackgroundFor five thousand years palm has been used as human food. It has been originated from

Africa. Palm tree was planted in 1848 in Indonesia and in 1911 in Malaysia for aesthetic

beauty. In 1917 Malaysia first started commercial production of oil palm. Sensing its

importance after about 50 years Malaysian government took huge steps to cultivate palm

and started importing from 1966 and now became one of the greatest palm oil producing

country in the world in course of time.

Bangladesh yearly needs 23.2 Metric Tons of edible oil. 70% of which are imported from the

foreign countries. From one source 80% of the imported oil is palm oil and the rest is

soybean. While the price of edible oil is increasing like a mad horse being independent in

edible oil production is a must. In this moment everybody should focus on this issue as the

prospect of palm oil production in Bangladesh is very bright.

1.2 Problem and IssuesLarge part of edible oil is imported from foreign countries. For which huge amount of

currencies goes to other countries and dependency on edible oil exporting countries are

increasing day by day as well. In this situation cultivation of oil palm can create a new

horizon.

At present the oil is extracted from the fruit by hand in a very small scale for domestic

purpose. If a long term planning can be made for large scale production of palm oil, it can

change the whole economy of Bangladesh. We can export the oil after meeting our local

demand. We can take a nationwide project in such a manner in which all the concerned

entities can be used in a collaborative way.

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1.3 Objectives

1.3.1 Broad ObjectiveThe major objective of the report is to introduce large scale commercial production and

distribution of palm oil in Bangladesh with a professional perspective.

1.3.2 Specific ObjectivesTo get better orientation about the modern production process with the help of

state of art technologies.

To analyze the distribution system of palm oil for having an efficient and dynamic

value chain.

To elucidate existing drawbacks in this industry and to find ways to solve them.

To identify prospective uses of palm oil.

1.4 RationaleCurrently 80% of the edible oil used in our country is being imported. 70% of this is palm oil.

If we can produce in our country in a large scale surely the price of edible oil will come

down. Again palm oil can be produced 12 times more per hectares than soybean oil. The

climate of Bangladesh is very conducive for producing palm oil.

The beneficiaries of producing and distributing palm oil are as follows:

General people

Related industries

Researchers

Government

1.5 Scopes and LimitationsNutrition and savory palm oil is used in more than ninety countries around the world.

Known for its palatability and wholesomeness, palm oil has inherent stability which makes it

ideal oil for domestic and commercial cooking.

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The scope of our study primarily concerns about the production and distribution of palm oil

in the local market as an alternative of soyabeen oil. Moreover, use of palm oil in various

sectors such as dairy firm, vanaspati, an alternative of butter ghee.

The plentiful vitamin E found naturally in palm oil gives a scope of pharmaceuticals industry

to produce vitamin E capsule with cheaper cost.

Apart from using as edible oil, the scope of non food uses of palm oil is particularly in the

oleo chemical industry. There are also lots of opportunities in the soap industry and candle

industry.

Although palm oil production and distribution has a high opportunity in our country, we will

face a major limitation that there is not enough information about the palm oil industry as

the market is not matured enough.

1.6 Methodology and Source of DataThe report will be based on both primary and secondary data. The secondary data will be

the main input for the report. This creates a theoretical basis of the report. The primary

research will be done to know about the current palm oil production and distribution

scenario in Bangladesh.

1.6.1 Primary Sources of DataFollowing methods will be followed to collect primary data.

▪ Informal discussion with agricultural expert to get the overview of palm oil

production

▪ Discussions with commercial experts to spot the existing distribution mechanisms

1.6.2 Secondary Sources of DataThe secondary data will be collected from different publications related to the production

and distribution of palm oil. The secondary sources are; journals, articles, internet and so

on.

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1.6.3 Data Collection Method

For the organization part information will be collected through different published articles,

journal, and books. Basic production and distribution information will be collected through

informal discussions with agricultural and commercial experts. Questionnaire would be used

as data collection tools.

2.0 PRESENT SCENARIO OF EDIBLE OIL MARKET

For last few couples of years, palm oil occupied 70% share of county’s edible oil market, but

in 2007 its market share declined to about 60%. However, from the beginning of 2008, palm

oil is regaining its position and currently occupying again 70% share of country’s edible oil

market. As per import information, in 2008, a quantity of 816,000 tonnes of palm oil was

imported in the country which is about 74% of the total import of oils and fats in that year.

As the country has huge refining capacity, mainly crude palm oil/olein at the ratio of 15:85,

on an average, are imported in the country. Price competitiveness, quality, change of food

habits - specially in urban areas, stagnant indigenous production etc. are contributing

together in the increasing trend of import of crude palm oil/olein vis-à-vis consumption of

refined/super olein in the country.

As the country’s per capita consumption of total oils and fats was in increasing trend in pace

with economic growth and rapid urbanization, import of oils and fats also being increasing

steadily in pace with the upward trend of consumption.

Under mentioned chart would give a picture about the consumption trend of various oils

and fats in the country since 2001 to 2007, which would show that consumption of palm oil

has been increased substantially during the recent years surpassing refined soyabean oil,

which was dominating the market for decades and traditionally preferred mustard oil.

Although the consumption of palm oil declined in 2007 due to substantial high price of the

same in the local market in pace with the international market, it is again on increasing

trend in 2008.

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Source: Bangladesh Bureau of Statistics, Oil World and MPOC Market Intelligence

Bar chart on import trend of major 3 edible oils in the country during 2001 to 2008, furnished

hereunder establishes that import of palm oil being increased steadily since 2001 compared to other

two major edible oils consumed in the country. Although import of palm oil decreased in 2007

compared to 2006, but it picked up again in 2008 when the import of palm oil increased by about

15% compared to 2007.

Year Soyabean Palm Mustard

‘000 tones

2001 464 380 95

2002 386 436 45

2003 362 498 70

2004 356 644 48

2005 210 931 33

2006 301 887 52

2007 495 709 57

2008 217 816 27

Source: Oil World & MPOC- Dhaka office

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Due to economic condition of major segment of 150 million populations of the country,

almost 75% of the total oils and fats consumed annually are sold in loose form, where palm

olein is dominant and the rest 25% market share is under consumer packs, where soyabean

oil is in leading position and palm oil’s position is second. Numbers of palm olein brands

namely, Meizan, Natural, Pure, Family, Dada Super, Shakti etc. are being marketed in

consumer packs in Bangladesh. Observing the demand of palm olein brands, refiners are

being encouraged to launch more and more palm olein brands in consumer packs.

3.0 PALM OIL IN BANGLADESHThe liquid gold of green tree has appeared as the beaconing of new hope before the people

of Bangladesh. The palm oil tree changed the fate of the South East Asian countries.

Recently it has been giving amazing production in our country. If the palm revolution can be

spread throughout the whole country, ten thousand crore taka can be saved which

Bangladesh spends every year in the importation of edible oil.

Bangladesh is deficit in oils and fats since pre-liberation period and was dependent on

imported oils. Palm oil was first introduced in Bangladesh in early ’70s just after liberation to

meet the growing demand. As there was no facility for refining of crude palm oil in

Bangladesh, only refined palm olein, which is locally known as palm oil, was used to be

imported which continued till early ’90s. During this period, refined olein generally, was

being imported mainly from Singapore. During that time imported olein used to be

distributed through govt. rationing system, besides, private trading. Because of its quality as

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well as price competitiveness compared to other cooking oils, it earned consumer’s

confidence quickly as good cooking oil. But in mid ’80s, due to malpractices of some

unscrupulous traders coinciding with anti-palm oil campaign by some vested corners,

negative perception about palm oil developed among the consumers of the country and

consumption of palm oil started to decline.

However, import of palm oil in crude form started to arrive again during early ’90s, when

local edible oil industries acquired the technical knowledge of palm oil refining and being

equipped with most modern machineries, these industries started to produce world class

refined palm olein, which received a good response from the market. With the introduction

of double-fractionated palm olein in the later part of ’90s, which is locally known as super

olein, the acceptance of palm olein in the country rapidly increased and in the year 2002,

palm olein managed to occupy the leading position among major 3-edible oils, namely

refined soyabean oil, refined olein and rape/mustard oil, consumed in the country which is

still continuing. 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.

In Bangladesh, apart from consumption of palm olein and super olein as cooking oil,

annually about 300,000 tonnes of refined olein is being consumed by the local food

processing industries namely, vanaspati, biscuit, bread and bakery products, fried snack

food such as chanachur, potato chips, dal bhaza (fried pulses), instant noodles, condensed

milk, ice cream, sweet meats etc.

3.1 Success StoryA retired government officer named Osman Goni has played the vital role in the amazing

success of palm cultivation. Eighteen years ago giving up the job as a Tohshildar he started

dreaming about palm tree. He had never seen any palm garden of Malaysia. Hearing about

it from his relatives he became curious. He started with 25 palm seeds. Initially he was

frustrated as the seeds took a long time to sprout. In the Pakutia village of Ghatail upogila of

Tangail, in his daughter’s residence he planted some plants. In the hilly region adjacent to

Pakutia he planted some more trees. Osman Gani lost many things in his life for his dream

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of palm garden. He was disheartened, when the sufferings reached to the zenith his son and

daughters tried to resist him. At that moment Saif Ahmed, a business man stood by his side.

He himself was a dreamer to change the lot of Bangladesh. He provided the mental and

financial assistance to Osman Gani . Saif Ahmed along with Osman Gani and his son Masud

established Bangladesh palm development project, which is recognized as the first non-

government institute .K.M Fakhrul Alom, the country director of Bangladesh, Nepal and

Myanmar of Malaysian palm oil council, stood by their side with advice and other

assistances.

The probability of palm oil cultivation had been being discussed among the specialists for a

long time. President Ziaur Rahman once took the initiative of a palm garden. At the end of

the 90’s during Awami reign an initiative was taken by the Bangladesh Army. But later the

initiative went in vein. After that many personal initiatives were taken by some people who

had the experience of working in the palm garden of Malaysia. Alauddin of Ghatail is one of

them who planted some palm plants in front of his home five years ago. Four of them have

now blessed with fruits. One KG oil can be gathered from a small bunch. Some of the

bunches have been dead. But Alauddin is very optimistic. Recently he as well as his wife has

been seen to water the plants. Now comes again Osman Goni. He lost his house long ago

but and planted the palm plant in front of his daughter’s house. He has made a nursery in

the yard of his daughter’s house. On the news of our arrival Alauddin had fetched some

purple bunch of palm from the hilly region. But the strange thing is that in Malaysia the

weight of a palm bunch is not more than 40 kg where as the weight of that in Ghatail is 60-

65 KG. The size of a palm fruit is also much bigger in comparison with Malaysia. In Malaysia

the rate of oil collection from the palm fruit is 25% where as it is 37% in Ghatail.

Osman Goni according to his 18 years of experience thinks that Palm garden is not only

feasible in Bangladesh but also consequent. He said that he has achieved this grand success

without any experience. His only companion was his strong determination. He had

encountered obstacles even from his family so long. Now everyone has come forward. In

the tree plantation movement people are being encouraged to palm tree nationally. He

thinks that the palm cultivation can be very profitable in the hilly region of Chittagong Hill

Tracts, Sylhet and in the hilly region of Mymensingh. The businessman and organizer Saif

Ahmed also thinks like that. He believes that the Palm cultivation can be spread socially on

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one hand it can be helpful to remove poverty and on the other hand Bangladesh can be self-

sufficient in sector of edible oil. Thus a huge amount of foreign exchange can be saved.

4.0 FEASIBILITY OF PALM OIL BUSINESS IN BANGLADESH

Palm cultivation is in a rudimentary stage in our country. There is no large scale production

and only few individuals are cultivating it in personal interest. In our “success story” section

we already named them and we will proceed on with our analysis based on their experience

and data.

4.1 CultivationOsman Goni has sprouted plant from the seeds of own trees. The seed requires one year to

be sprouted. After two years the plant begins to grow rapidly. It takes 5 years to have fruit.

Initially the bunch and fruit remains small and in course of time both fruits and branches

begin to grow bigger. Osman Goni has got some of the bunch which is 80 kg in weight. In

Malaysia the average weight is generally 20-40 kg.

4.1.1 Soil Requirement

Highland soil with good drainage condition is favorable for palm tree. Mainly hilly soils and

terrace soils are recommended for palm production. In Bangladesh this type of soil is

available in four out of six divisions. Palm can be cultivated in Dhaka, Chittagong, Sylhet and

Rajshahi division. Large area of these divisions are occupied with either terrace or hilly soil.

4.1.2 Fertilizer Requirement

It does not require fertilizer. But palm trees are generally cultivated along with leguminous

plants. It protects soil erosion and also provides nitrogen to the soil.

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4.1.3 Topography

Medium to high land is required for palm cultivation.

4.1.4 Climate

Palm tree requires tropical climate. Temperature ranges from 19.5oC to 28.5oC is most

favorable for palm tree. Annual amount of rainfall of 1900mm to 3500mm is optimum for

palm production.

4.1.5 Nurturing

Palm tree does not need so much care like other oils. Besides, the production of palm oil per

acre is much higher than that of other oils.

4.2 Production per acreThe economic and environmental advantage of palm oil is much more than other oils. Soya

bean, corn or mastered oil is produced again and again where palm tree gives fruits just

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after the 4-5 years of plantation and it keeps going for 30 years. Palm tree does not need so

much care like other oils. Besides, the production of palm oil per acre is much higher than

that of other oils.

Among all the vegetable oils palm oil production is 605 gallon per acre. In the same area

coconut oil is produced 287 gallons, olive oil 129 gallons, rapeseed oil 127 gallons, nut oil

113 gallons, sunflower 102 gallons, mustards oil 61 gallons, soyabean oil 48 gallons, and

corn oil 18 gallons.

In comparison with soyabean oil the production of palm oil is 13 times higher. Besides, the

food value of palm oil is more than soyabean and other oils. From the environmental point

of view palm cultivation is positive. The palm is productive for 30 years and the carbon

abundance is much less in comparison to master and soyabean. Besides after collecting the

fruits the bunch can be processed as fertilizer.

4.3 The indigenous style of Palm oil collection

Among all the edible oils only Palm and olive oil can be eaten without any processing. That is

why no mills and refinery is required in collecting palm. For collecting oil fruit is cut from its

bunch and is boiled. After boiling the palm fruit juice can be collected by the pressure of

finger tip. When the water mixed palm oil is boiled the water becomes evaporated and red

colored oil is found. To get a golden hue the red color is removed through bleaching. So the

vitamin A does not exist. But if the oil is processed in indigenous style the vitamin A sustains.

The collected palm oil can be used in any cooking purpose. The palm fruit is available in any

seasons of the year and only a few palm trees are enough to maintain the necessity of a

family.

4.4 Health benefits

4.4.1 Healthier Hearts

Numerous studies have shown that palm oil in the diet lowers total blood cholesterol and

'bad' LDL cholesterol and increases the 'good' HDL cholesterol. It contains little to no trans-

fats that raise LDL cholesterol and increase the risk of heart disease. Palm oil also does not

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promote the formation of plaques in the arteries and has an anti-blood clotting effect, both

which helps prevent heart disease.

4.4.2 Anti-Ageing Palm Oil

Palm oil is rich in Vitamin E. In fact, no other vegetable oil has as much Vitamin E compared

to Palm Oil. Vitamin E is a powerful anti-oxidant, capable of reducing the harmful types of

oxygen molecules (free radicals) in the body. This means they may help to protect one from

certain chronic diseases, while delaying the body's ageing process.

4.4.3 Preventing Cancer

Palm Oil contains chemical compounds that are scientifically beneficial towards preventing

cancer. One of the easiest ways to prevent cancer is to avoid consuming hydrogenated fats

by selecting food products that use palm oil or fats made from palm oil. Palm oil-based

products are free from trans fatty acids.

4.4.4 Effect of palm oil on basal metabolic rate

Some available evidence shows that palm oil has a similar metabolic effect on fat catabolism

as unsaturated fatty acids. Thus fresh palm oil is more beneficial to the body with respect to

overall heat production.

4.4.5 Effect of palm oil on body weight, growth and morphology of tissues

Fats and oil, like other classes of food, exert some degree of influence on body weight and

tissue morphology. Palm oil feeding did result in body weight values that were lower than

those found after feeding highly unsaturated oil. Study also showed that palm oil

contributed to low weight gain, sparse hair and unhealthy skin in the experimental animals.

4.4.6 Effect of palm oil on tissues lipid distribution

Recent experiments have demonstrated that palm oil diets lower the plasma levels of

triglyceride, LDL cholesterol and do not decrease the level of HDL-cholesterol. The effect of

palm oil on other lipid distribution in various tissues is similar to that reported for blood

cholesterol.

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4.4.7 Effect of palm oil on blood pressure and contractile activity of blood vessels

Palm oil, with its saturated and unsaturated fatty acid components, contributes to the level

of blood pressure.

4.4.8 Palm oil and liver enzymes

The liver is an organ for metabolism of various compounds in the body and also the primary

target of oxidative injury. It is more or less altered in structure in any metabolic disorder.

Palm oil seems to have some protective effect against oxidative damage.

4.5 Other uses of Palm

4.5.1 Bio-fuel

There are a number of advantages in using palm oil for the production of biofuel. Unlike

fossil fuels, the combustion of palm oil biofuel does not increase the level of carbon dioxide

in the atmosphere as the oil is merely returning carbon dioxide obtained earlier from the

atmosphere through photosynthesis. As such, biofuel is regarded as carbon neutral.

Since carbon dioxide is a greenhouse gas responsible for global warming, the world benefits

by the burning of biofuel instead of fossil fuel. Additionally, the palm trees that produce oil

have simultaneously absorbed a lot more carbon dioxide during photosynthesis to form

biomass for the other parts of the plant. The tree continues to absorb carbon dioxide

throughout its life span of 25-30 years.

4.5.2 Skincare and Cosmetic Products

Hot weather and the sun's ultra-violet rays can damage the skin. That's why people use

moisturizing creams and lotions for protection. For added beauty, they also use cosmetics.

Most cosmetic products are made of palm oil. As a versatile vegetable oil, palm oil is

suitable for making cosmetic products like lipsticks for example. Palm-based cosmetic

products have also been proven to be the best in quality in terms of moisturisation

properties

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5.0 ADVANTAGES OF PALM OIL

5.1 Advantages of Palm Oil over Other Edible OilDimensions Palm Oil Other edible oil

Health Cholesterol level is low Cholesterol level is high

Refining Not necessary Necessary (except olive)

Production per acre Higher Lower

Fertilizer Low High

Nurturing Little Extensive

Plant life 30 years 4-5 years

Oxygen Production Higher Lower

Other uses Great prospect as bio fuel Little prospect as bio fuel

5.2 Advantages of Bangladesh over Malaysia

Dimensions Bangladesh Malaysia

Labor cost Low High

Weight of bunch 60-65 kg 40 kg

Oil Content 37% 25%

6.0 A PROPOSED MODEL IN LIGHT OF MALAYSIAN MODELMalaysia is regarded as the pioneer in commercial palm oil production and distribution.

They follow structured and well organized cultivation process, refining process and

distribution. So, following Malaysian model would help to get insights and necessary

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knowledge to develop a model of our own. In this section a model is proposed based on that

model that is why background of Malaysian palm production is also incorporated here.

Planted Area under Oil Palm

In Malaysia the largest oil palm growing states were Sabah, Johor and Pahang, accounting

for about 63% of the total planted area. The rate of planting in Sabah has been impressive,

considering that commercial planting in the state only commenced in 1970.

Although commercial planting of oil palm in Malaysia began in 1917, large-scale cultivation

did not take off until the .The growth of the industry, in terms of planted area since then has

been very rapid. In 2001, the total area planted with oil palm was 3,499,012 hectares, 59.9%

or 2,096,856 hectares being in Peninsular Malaysia, 29.4% or 1,027,329 hectares in Sabah

and 10.7% or 374,828 hectares in Sarawak. The last decade had seen rapid expansion in the

cultivated area in Sabah and Sarawak; while planting in Peninsular Malaysia had slowed

down because of diminishing availability of new land for the crop.

The similar story also prevails in our country. We have hilly regions basically in Chittagong,

Sylhet, Mymensingh region. So, the cultivation would be concentrated in those regions.

These area also occupy available lands because not all types of crops are cultivatable here.

6.1 ProductionWith the rapid expansion in the planted area, the annual production of palm in Malaysia

had increased significantly in Malaysia; the crude palm oil (CPO) produced in 2001 was 11.8

million tonnes which was 4.6 times the volume produced in 1980. The increase in

production in Sabah was particularly impressive, reflecting the aggressive planting policy in

the state and it became the largest CPO producer in 1999. In 2001, Sabah accounted for

31.5% of the national production. Other major CPO producing states are Johore, Pahangand

Perak in Peninsular Malaysia.

Table: Production of Crude Palm Oil in Malaysia (Tonnes)

Region 1980 1990 1995 1999 2000 2001

P. Malaysia 2,394,324 6,094,622 6,094,560 7,427,838 7,221,539 7,477,338

Sabah 156,471 678,995 1,493,623 2,664,516 3,110,320 3,716,168

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Sarawak 22,378 107,651 222,363 461,564 520,236 610,282

Total 2,573,173 6,881,268 7,810,546 10,553,918 10,852,095 11,803,788

Source: MPOB (cited in www.mpob.gov.my)

Key Processes in the Production of Palm Oil

The following production process is actually a replication of Malaysian process with some

modification.

Production of Fresh Fruit Bunches (FFB)

The key sub-processes involved in the development of plantations for the production of

fresh fruit bunches (FFB) are shown in Figure and the main activities for each step are

summarized in the following page:

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Figure: Processes in the Production of Fresh Fruit Bunches

17Replanting

Harvesting & Collection

Field Maintenance

Site Preparation

Planning Phase

Field Establishment

Nursery Establishment

Fresh FruitBunches

(FFB)To Palm Oil

Mill

Planning Phase

Planning phases for the development of new plantations would involve the conduct for

feasibility studies and an environment impact assessment (EIA) if the area to be developed

is primary or secondary forest in excess of 500 hectares. An EIA is also required if the

development involves changes in the types of agricultural use of land in excess of 500

hectares.

The EIA study would facilitate the identification potential environmental and social impacts

and development of management plans to mitigate the adverse effects. The process for the

approval of EIA reports is shown in Figure 4 which is based on the approach adopted by the

Natural Resources and Environment Board, Sarawak.

Nursery Establishment

It commences as soon as the land is found to be suitable and approved by the respective

agencies for development to proceed. Good quality DxP seedlings are raised in a polybag

nursery for about 12 months. Good nursery practices such as adequate watering, manuring

and culling of seedlings with undesirable characteristics are essential for the production of

vigorous planting materials. A culling rate of up to 25% is commonly practiced in well

managed nurseries but in Bangladesh it is projected more than 35%.

Site Preparation

It includes land survey, clearing of existing vegetation, establishment of a road and field

drainage system, soil conservation measures such as terracing, conservation bunds and silt

pits and sowing of leguminous cover crops.

Field Establishment

Activities are lining, holing and planting of poly bag oil palm seedlings at density of 136 to

148 palms per hectare, depending on the soil type. It is important that effort is made to

obtain full ground coverage by leguminous cover crops such as Pueraria javanica and

Calopogonium caeruleum to minimise soil loss through runoff as well as to improve the soil

properties through nitrogen fixation.

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Field Maintenance

Operations include weeding, water management, pruning, pest and disease management

and manuring. Integrated pest management involving a mix of cultural, physical, chemical

and biological control approaches to minimize crop losses to pests is commonly adopted in

plantations. Examples of biological control measures applied include the use of baculovirus

and Metarhizium anisopliae to control the rhinoceros beetle (Oryctes rhinoceros), control of

leaf-eating bagworms and nettle caterpillars by their natural predators and parasitoids and

the use of barn owls (Tyto alba) (Plates 7 and 8) as the biological agent to control rats.

(Golden Hope Plantations Berhad, 1997). As the cost of fertilisers is the major component of

field upkeep expenditure, plantation companies generally undertake soil and foliar analyses

of individual fields regularly to assess their nutritional status and determine the appropriate

types and quantities of fertilisers required for optimal palm development and production.

Harvesting and Collection

Harvesting of FFB commences between 24 to 30 months after field planting, depending on

the soil type and agronomic and management inputs. Harvesting is done manually, using a

chisel in young palms and a sickle mounted on a bamboo or aluminum pole in taller palms.

There are various systems for in-field collection of FFB and transportation to the palm oil

mill. In view of increasing shortage of workers as well as the need to increase worker

productivity, mechanized approaches have been adopted by plantations, an example being

the tractor-mounted ‘grabber’.

Replanting

The economic cycle of the oil palm is about 30 years, after which the old stand is replanted.

The zero burning technique of replanting is now common commercial practice. However, in

some situations, plantations consider.

Under planting

It is the process in which new seedlings are planted under the old palms which are thinned

out progressively to allow the development of the new stand.

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6.2 Channel of DistributionEffective distribution is a must for proper commercialization as well as maintaining the food

value. Malaysia also here operates with precision which is also applicable in our country’s

case. The distribution incorporates both domestic and international channels

The pattern of channel of distribution has so far been as follows: the cooking oil industry of

palm oil obtains its raw material from its own plantation or from other CPO producers,

either private or state-owned companies. Meanwhile, the cooking oil industry of coconut oil

obtains its raw material from collecting trader. The processing industry distributes the

cooking oil it has produced through marketing chain it has developed.

The channel of distribution of palm oil in domestic and overseas market can be described as

follows:

7.0 PROMOTING PALM OIL IN BANGLADESHAs a new inception of organized palm production and distribution, such effort requires some

creative and focused approach of marketing. Local production and distribution will help

people to enjoy comparatively lower prices. Moreover, since palm can also be exported to

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abroad government will help the industry by taking incentive programs. In addition, as a

part of agriculture sector direct support of government can be expected. To gain desired

response structured marketing strategies will be followed. Some of the strategies are as

follows:

People awareness would be created through campaigns focusing health benefit

issues.

Lower price can be offered because of the lower production cost and cost

advantages.

‘Indigenous product consumption’ campaign would be executed.

Well structured supply chain would be ensured.

Intermediaries would be offered higher margin to promote specific brands.

Seeking government incentives for promoting the business countrywide.

NGOs can take initiatives to popularize palm oil in our rural areas.

8.0 PROBABLE CONSTRAINTS

It takes quite a long period to have fruits and thus first production of palm oil. So,

initially farmers or entrepreneurs have to wait to generate cash inflow.

In spite of consuming palm oil still soyabean is considered as prime edible oil. Palm

oil still lagging behind in popularity.

Without having government’s assistance it is too hard to materialize such project in

large scale.

A group of people who are benefited by the import of Palm oil may discourage palm

oil production in Bangladesh.

Farmers are not sure whether they can market there product, this deter many

farmers to start palm cultivation.

Lack of expertise is also a vital limitation.

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9.0 CONCLUSIONProvided the economic and health benefits it is the high time for Bangladesh to start

commercial production and distribution of palm oil. Bangladesh is in a better situation

for production of palm oil than Malaysia, and palm oil production is also more beneficial

than other oil production. The success story of Mr. Goni reveals that palm oil production

in Bangladesh can be more effective. Also we have a lot of hilly areas in our country for

palm oil cultivation. The weather is also very much suitable in our country for palm

trees. But Government has to come forward to help businessmen and farmers

financially and by providing the interested stakeholders with experts. Without proper

knowledge and enough financial support, successes like Mr. Goni can come, but for

commercial production and distribution of palm oil Government's help and support

absolutely necessary.

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REFERENCES

Bjorn, F. & Dhalen, F. 1995. Malaysian Palm Oil. Malaysian Palm Oil Promotion Council.

Malaysia.

Rahman, M.R., 2005. Soil of Bangladesh. Soil Resources Development Institute (SRDI).

Darpan Publication, Dhaka, Bangladesh.

http://mpoc.org.bd

http://mpoc.org.my

http://thedailystar.net

http://dailynoyadigonto.com

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