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NewsOils and Fats Sector Coverage

Bangladesh Eyes Soybean Expansion to Cut $2.5 Billion Import Bill and Bridge Protein Gap

Fats and oils processing
August 18, 2026
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زيت النخيل أصبح وقودا لسيارات السباقات

Bangladesh is aiming to significantly reduce its heavy reliance on imported edible oil and animal feed by boosting domestic soybean cultivation and strengthening its local value chain. This strategy was the central theme of a recent roundtable titled 'Charting the Path of Nutrition Security: Bridging the Protein Gap through Multi-dimensional Use of Soybean,' jointly organized by Solidaridad Network Asia and The Daily Star, with support from the Netherlands’ Ministry of Foreign Affairs and HSBC Bangladesh.

The nation currently imports a staggering 93 percent of its edible oil, incurring an annual cost of approximately $2.5 billion. Furthermore, the feed industry requires the yearly import of 2.4 to 2.8 million tonnes of soybean and soybean meal. Mohammad Moziball Hoque, Head of Supply Chain and Private Sector Engagement at Solidaridad Network Asia, highlighted in his keynote address that local production presently satisfies only 7-8 percent of the national soybean demand.

Professor Jahedur Rahman, Pro-Vice Chancellor of Gazipur Agricultural University, underscored soybean's dual importance as both a food and feed source, owing to its protein content exceeding 40 percent. He advocated for 'quality seeds, mechanisation and greater farmer awareness,' emphasizing the critical need for stronger public-private collaboration.

Professor Abdul Karim of International University of Business Agriculture and Technology projected that Bangladesh’s soybean requirement could reach 10 million tonnes by 2030. He declared, 'A target of meeting at least 25 percent of our requirement from domestic production is realistic,' identifying the southern coastal belt and newly emerging land as key growth areas. He also called for private entrepreneurs to commercially produce and supply quality seed, supported by buyback guarantee models linking academia, industry, and farmers, as Bangladesh Agricultural Development Corporation (BADC) alone cannot meet the seed demand.

Osman Haruni, Senior Policy Advisor at the Netherlands embassy, cautioned against pursuing full self-sufficiency. He stated, 'Bangladesh does not have the comparative advantage that Brazil or the United States has. What we can do is identify the areas where soybean makes economic sense and invest there,' suggesting soybean should complement, rather than replace, rice cultivation by utilizing fallow and marginal land. Haruni stressed that the government should act as a facilitator, supporting seed development, processing, storage, and financing mechanisms.

Mohammed Harun Or Rashid, Principal Scientific Officer at Bangladesh Agricultural Research Institute (BARI), urged the country to build a stronger domestic market before scaling up production. He noted, 'About 90 percent of our soybean is produced in Lakshmipur, while only a handful of companies are the major buyers.' He added that national yields, at 1.85 tonnes per hectare, still lag behind the global average of over 2.5 tonnes. Rashid also highlighted the existence of salt-tolerant, short-duration varieties and identified soy milk as an underutilized avenue to boost both production and consumption.

Fasiul Alam, Head of Business at Nourish Feed, shared that locally developed soybean varieties from Gazipur Agricultural University, Bangladesh Institute of Nuclear Agriculture (BINA), and BARI boast an average protein content of approximately 38 percent, surpassing the 32-34 percent found in imports. However, he flagged post-harvest risks, mentioning that early rainfall this year resulted in 4-15 percent of locally sourced seed being affected by fungal infections. Alam proposed, 'If we can bring the moisture content of harvested seed down to around 10 percent, the risk of fungal infection can be virtually eliminated,' suggesting community-level dryers and enhanced monitoring against variety mixing.

Enamul Karim of CP Bangladesh Co Ltd revealed that soybean meal constitutes 25-30 percent of feed ingredients across the industry. He affirmed, 'We are ready to take the entire production if we can get the required quality,' noting that CP can offer advance payments and fixed prices to farmers. The company recently sourced around 8,000 tonnes from Muladi in Barishal and is exploring expansion into other districts.

Rizuanur Rahman, a soybean farmer from Noakhali, attested to the significant cost reductions achieved through mechanization. He explained, 'We used to spend more than Tk 20,000 to cultivate a plot because of labour and other farming costs. With the seeder machines, we have been able to reduce those costs significantly.' He also credited training in biological pest control for reducing chemical pesticide use.

Syeda Afzalun Nessa, Head of Corporate Sustainability at HSBC Bangladesh, stated that the bank has supported climate-smart agriculture in vulnerable areas for five years as part of its CSR efforts. 'We are still at an early stage, but there is a lot of potential,' she concluded.

Obadur Rahman of the Department of Agricultural Extension (DAE) emphasized the need for Bangladesh to strengthen its soybean seed system and concentrate production in suitable coastal areas. He urged, 'BADC needs to take greater responsibility for soybean seed production, preservation and marketing. At present, its contribution to these areas is very limited, and this needs to change.' Rahman also cautioned that expanding soybean cultivation nationwide would be challenging due to competition for land with rice and other crops. He elaborated, 'Given our land scarcity and high cropping intensity, we cannot realistically cultivate soybean across the country. The coastal belt, particularly the climate-vulnerable areas, is the most suitable region for expanding soybean cultivation.'

Selim Reza Hasan, Country Manager of Solidaridad Network Asia, concluded by asserting that scaling up requires a robust policy framework for stress-tolerant seeds, improved access to finance, and stronger farmer-buyer linkages. He stated, 'The market is the driver of change for sustainability,' advocating for investment in the market system to build food security for both producers and consumers.

Source: The Daily Star