Govt’s plan to boost oilseed production miscarries

The Department of Agricultural Extension’s (DAE) effort to increase oilseed production missed the mark as consumption still hinges on import.

According to the Council of Palm Oil Producing Countries, the country’s annual consumption of oil and fat stands at around 30.3 lakh metric tonnes, 92 per cent of which is met through imports.

However, extraction from locally produced oilseeds is only around 3.25 to 3.50 lakh metric tonnes, according to sources.

Bangladesh produced 11.99 lakh metric tonnes of oilseeds in the last fiscal year which was 10.59 lakh metric tonnes in Fiscal Year 2016-17.

Due to lack of local supply the country imported 27.73 lakh metric tonnes of edible oil, fat and oilseed worth $ 2.12 billion in Fiscal Year 2019-20, the intergovernmental organisation said in August last year, adding that per capita consumption of edible oil in 2016 stood at 15.3 kilogrammes which reached 18.4 kilogrammes in FY20 – an increase by 20 per cent. 

However, in the last five years oilseed production went up by only 1.40 lakh metric tonnes which are much less than the rising demand.

However, according to the National Board of Revenue (NBR), the country imported 7.40 lakh metric tonnes of soybean and 10.55 lakh metric tonnes of palm oil in crude and refined forms in Fiscal Year 2020-21. A Tk 13,464.33 crore was spent on edible oil during the period.

Oil extraction remains meager

Extraction does not happen from all oilseeds, which are used for different purposes, thereby causing more dependency on import.

However, oil is extracted from almost all mustard seeds. A maximum 40 per cent of oil can be obtained from mustard seeds. Thus 7.87 lakh metric tonnes of mustard seed can produce 3.14 lakh metric tonnes of oil.

Though Bangladesh produces 1.65 lakh metric tonnes of peanuts but no peanut oil is found in the local market. Peanuts are largely used in bakery items and other purposes.

Some 1.35 lakh metric tonnes of soybean seeds were produced in last fiscal year, but there had been no oil taken out of local soybeans, which were used in poultry and animal feed production.

The business insiders said 20 per cent oil can be drawn out of soybeans.

“The price of per-kilogramme soybean is around Tk 50. So, a five-kilogramme soybean costs Tk 250. With extraction and marketing costs included, a one-kilogramme oil from five-kilogramme soybean seeds will cost over Tk 300 which is much higher than the current market price of imported soybean oil,” said Md Jasim Uddin, project director, Oilseed Production Increase Project at the DAE.

“No locally produced soybean is used for oil extracted.” 

The country produced 25,000 metric tonnes of sunflower seeds, 2,000 metric tonnes of Limseed (Tisi) and 84,000 metric tonnes of sesame (Teel) in the last fiscal year.

All the oilseed productions have remained almost the same since FY 2016-17. The mustard seed production increased a bit reaching 7.81 lakh metric tonnes in FY21 from 7 lakh metric tonnes in FY2017.

Projects are there but no visible output

The government has taken up two separate projects to boost oilseed production and develop seed quality.

A project was undertaken in 2013 for production, storage and distribution of quality seeds of pulses, oil and onion at the farmers’ level.

The third phase of the project worth Tk 165 crore started in July 2017 which will end in June 2022.

An integrated project of Bangladesh Agricultural Research Council, Bangladesh Institute of Nuclear Agriculture and the DAE has kicked off from July 2020 and is expected to end in June 2024. The project worth Tk 278 crore aims to increase oilseed production.

“A notable success is not seen in quality seed production excepting mustard. Farmers are not interested in cultivating oilseeds either,” said Anwar Faruk, former secretary, the Ministry of Agriculture.

“Weather condition and soil are not fit for oilseed farming in the country. The growers need to be assured of compensation by the government should they fail to achieve profitable yield.”

According to the DAE officials, a Tk 278-crore new project was undertaken mainly to grow mustard seed during the gap period between Aman and Boro season.

“We need to invent Aman varieties which will take 110-115 days instead of 140 to 145 days. If Aman can be harvested before November 15, mustard can be cultivated during the 80 days gap between Aman and Boro,” said the DAE project director Jasim Uddin.

“There are 20 lakh hectares of such land. If we can influence farmers to cultivate the Aman variety that takes considerably less time and grow mustard seeds in the gap, around 50 per cent of oil demand can be met by locally produced oilseeds.”

On the other hand, sunflower production fell notably down in the last five years.

In FY 2015-16, 45,000 metric tonnes of sunflowers were produced in the country which dropped to 4,200 metric tonnes in FY 2016-17. However, the sunflower production reached 25,000 metric tonnes in Fiscal Year 2020-21, showed the DAE data.

A special hybrid variety of sunflower can yield around 2 metric tonnes per hectare.

“Due to shortage of quality seeds farmers do not want to cultivate sunflower,” Jasim pointed out.