Lang
Bangladesh's palm oil imports surged far ahead of soybean oil in the last fiscal year, even as soybean oil remains the household cooking oil of choice across the country, according to data from the Bangladesh Bureau of Statistics (BBS).
The country imported palm oil worth Tk 311.61 billion in FY2025-26, approximately 132 per cent more than its soybean oil imports of Tk 134.35 billion, the BBS data showed.
The gap between the two leading edible oils has widened steadily over recent years. In FY 2024, palm oil imports stood at Tk 336.95 billion, 87 per cent higher than soybean oil imports of Tk 178.81 billion. In FY2025, palm oil imports reached Tk 336.15 billion, exceeding soybean oil imports of Tk 217.64 billion by 54 per cent.
The figures have raised sharp questions about where the bulk of imported palm oil is being consumed, given that soybean oil dominates household kitchens and is widely available in bottled form at retail outlets.
Market insiders said a striking paradox has emerged in Bangladesh's commodity market, challenging common perceptions about the country's dietary habits and import dynamics.
Industry players, however, explained that the paradox is largely accounted for by the commercial food-processing sector and the widespread consumption of loose edible oil.
Syed Farhad Ali Reza of the Bashundhara Group noted that the principal driver behind the massive inflow of palm oil is Bangladesh's rapidly expanding industrial food sector. Mega food-processing facilities, commercial bakeries, institutional catering, hotels, and restaurants consume the largest share of the edible oil, he added.
Another cooking-oil importer said palm oil is widely used for deep-frying products such as potato chips, biscuits, instant noodles, singaras and puris because of its relatively high smoke point and lower cost.
Much of this consumption remains invisible to consumers because processed foods typically list only the generic term 'vegetable oil' on their packaging, without specifying the oil type, the importer added.
A second, more concerning factor is the widespread practice of blending and rebranding in the loose-oil market, he noted. A significant number of consumers, particularly in rural and semi-urban areas, purchase unbottled, loose edible oil from local groceries.
Industry insiders acknowledged that wholesale traders frequently blend cheaper palm oil with soybean oil or sell super-refined palm oil under the generic label of 'cooking oil'. Lower-income consumers often mistake this for soybean oil because of its clear appearance during warmer months.
Such practices can make it difficult to determine the actual composition of oil reaching consumers.
Refiners and traders said global supply-chain disruptions and domestic pricing policies have also made edible-oil trading increasingly challenging, encouraging commercial users to opt for the more economical palm oil.
As the country navigates a widening supply deficit, with annual domestic demand hovering between 2.3 million and 2.5 million tonnes, economists emphasise that palm oil's dominance is an economic reality driven by industrialisation and price dynamics, despite soybean oil's strong position in home cooking.
For the average consumer, the reality is clear: even if they choose soybean oil for their home meals, they are unknowingly consuming far more palm oil through the processed foods that sustain modern urban life.
Local trade expert Mustafa Abid Khan told The Financial Express that authorities, including the Bangladesh Standards and Testing Institution (BSTI), Bangladesh Food Safety Authority, and Directorate of National Consumer Rights Protection (DNCRP), should review the edible-oil market and consumption patterns.
The authorities should also strictly verify whether soybean and palm oils are being blended or mixed before being marketed to consumers, he said.
Source: The Financial Express