DHAKA, Aug 7 (Reuters) - State buyer Trading Corporation of Bangladesh will import 20,000 tonnes of refined palm olein annually through an international tender, in an attempt to keep domestic prices more stable, its chairman said on Tuesday.
"We will seek the entire quantity in a single tender and receive 5,000 tonnes of refined oil every three months from the winning bidder,” Sarwar Jahan Talukder said.
“It will ensure a normal flow of edible oil throughout the year,” he said.
Successive governments have been struggling to control prices of edible oil amid widespread accusations that big players often create artificial shortages to make windfall profits.
Analysts said the volume of the latest tender would not be enough to control the market.
“It’s good that the government is finally taking an initiative, though the initial impact will be nominal,” said Fakhrul Alam, Malaysian Palm Oil Council’s regional manager for Bangladesh, Nepal and Myanmar.
“The purpose will be achieved only if the government gradually increases the import volume and holds a substantial quantity in reserve.” he told Reuters.
Bangladesh is almost entirely dependent on imports of crude and refined palm and soybean oil to meet domestic demand of nearly 1.5 million tonnes.
It imports 1 million tonnes of palm oil, 400,000 tonnes of soybean oil, 150,000 tonnes of rapeseed and 100,000 tonnes of soybean seed annually.
