In a bid to ensure a stable domestic supply of cooking oil, Bangladesh’s National Board of Revenue (NBR) has imposed a 25% regulatory duty on the export of crude and refined rice bran oil. The move follows a recommendation from the Bangladesh Trade and Tariff Commission (BTTC) in December 2024 and is intended to discourage exports while helping to control rising cooking oil prices within the country.

Over the past few months, Bangladesh has witnessed a surge in cooking oil prices, largely due to rising global costs. The price hike has been driven by a decline in palm oil production and Indonesia’s increased focus on diverting palm oil for biodiesel production. These global supply chain disruptions have led to higher import costs for edible oils, impacting consumers in Bangladesh and prompting the government to take action.

Rice bran oil, a byproduct of rice milling, has gained popularity as an alternative to traditional cooking oils. It is known for its affordability and widespread use in Bangladeshi households. However, increased exports in recent months have contributed to local supply shortages, further driving up prices. By imposing the new duty, the government aims to ensure that more rice bran oil remains available within the country, helping to ease market pressure and reduce consumer costs.

The regulatory duty aligns with the government’s broader strategy to maintain food security and price stability in essential goods. Similar protective measures have been implemented in the past for staple commodities to prevent price volatility caused by excessive exports. While the new tax may impact exporters and rice bran oil producers who rely on international markets, the policy is expected to provide relief to domestic consumers and industries that depend on a steady supply of cooking oil.

Industry experts suggest that the decision will encourage local refiners and producers to focus on meeting domestic demand before expanding into global markets. Additionally, the government may reassess the duty in the future if international conditions improve and domestic supply stabilizes.

The imposition of this duty highlights Bangladesh’s commitment to balancing international trade dynamics with the needs of its local market. With global edible oil prices remaining volatile, proactive measures such as this are crucial in safeguarding consumer interests and ensuring food security.