Rice bran oil’s Tk300cr boost to Bogura exports
Skip to main content
  • Home
  • Economy
  • Stocks
  • Analysis
  • World+Biz
  • Sports
  • Features
  • Epaper
  • More
    • Subscribe
    • COVID-19
    • Bangladesh
    • Splash
    • Videos
    • Games
    • Long Read
    • Infograph
    • Interviews
    • Offbeat
    • Thoughts
    • Podcast
    • Quiz
    • Tech
    • Archive
    • Trial By Trivia
    • Magazine
    • Supplement
  • বাংলা
The Business Standard

Wednesday
July 06, 2022

Sign In
Subscribe
  • Home
  • Economy
  • Stocks
  • Analysis
  • World+Biz
  • Sports
  • Features
  • Epaper
  • More
    • Subscribe
    • COVID-19
    • Bangladesh
    • Splash
    • Videos
    • Games
    • Long Read
    • Infograph
    • Interviews
    • Offbeat
    • Thoughts
    • Podcast
    • Quiz
    • Tech
    • Archive
    • Trial By Trivia
    • Magazine
    • Supplement
  • বাংলা
WEDNESDAY, JULY 06, 2022
Rice bran oil’s Tk300cr boost to Bogura exports

Economy

Khorshed Alam
15 February, 2022, 10:55 pm
Last modified: 16 February, 2022, 05:15 pm

Related News

  • Russian court orders one of world’s largest pipelines to suspend operations
  • China May oil imports from Russia soar to a record, surpass top supplier Saudi
  • Oil prices plunge on dimming demand, recession fears
  • Oil prices bounce back from Tuesday tumble as supply concerns return
  • Oil from US reserves sent overseas as gasoline prices stay high

Rice bran oil’s Tk300cr boost to Bogura exports

Once the global market overcomes the pandemic-induced disruption, it is possible to generate record export output from various Bogura agro produce

Khorshed Alam
15 February, 2022, 10:55 pm
Last modified: 16 February, 2022, 05:15 pm

Achieving a staggering growth, Bogura, a northern district of Bangladesh, witnessed its annual export earnings boost to over Tk500 crore last year from only a little over Tk100 crore five years ago, mainly riding on rice bran oil.

Alongside agro-products that mostly contributed to raking in forex earnings, light engineering and farm machinery in the region's export basket also played a part in propelling the growth at a faster pace.

The number of export items manufactured in the district has also risen to at least 16 from 10 during the time.

Exporters say more products are joining the list.

The range of export items from Bogura includes irrigation pumps, rice bran oil, jute yarn and jute bags, sacks and threshing machines, potatoes, pets and various types of plant saplings.

Among other products, synthetic hair goods are exported to the United States, potatoes to Sri Lanka, jute bags to Singapore, tree saplings to Turkey, pants, vests and soybeans to Nepal and Bhutan.

The growth driver

Rice bran oil, which has been at the top of the list over the last five years, accounted for over Tk300 crore worth of the exports last year alone.

Demand for rice bran oil is the most in India. In 2018, rice bran oil export amounted to Tk250 crore.

But exporters could not enter the potential markets of Australia and Japan because there is not enough raw materials for the producers.

Four companies that produce rice bran oil in Bogura – Majumder Products Limited and Western Agro Products Limited in Sherpur, Tamim Agro Industries in Shahjahanpur, and Al-Noor Agro Limited in Kahalu upazila – mainly export their products.

Tamim Agro Industries exported Tk143.47 crore worth of rice bran oil last year.

Nayeem Hasan Rupon, director (finance) at the company, said they have been exporting the edible oil for more than 10 years.

"Japan, Australia, and China were the earlier export destinations but in recent years there is a growing demand for this oil in India," he said.

There is now a shortage of rice husk, the main raw material for producing such oil, he added.

"The demand is increasing as the oil we produce is of good quality. There is a demand for this oil in other countries as well," he said.

India's rice bran oil imports from Bangladesh were expected to double in FY21 from 75,000 tonnes in the previous fiscal year, an Indian newspaper reported, quoting business sources.

India produces about 10 lakh tonnes of rice bran oil every year.

Rice bran oil’s Tk300cr boost to Bogura exports

How Majumder Products entered the race

In 2008, Chitta Majumder, managing director of Majumder Products Ltd, set up a rice mill in Jashore's Noapara and started importing rice from India around 2010.

He got the idea of setting up a rice bran oil mill when he came across such mills in different Indian states. The millers in the neighbouring country, despite being in this business for the past 40 years, could not gain a strong foothold in the rice bran oil market.

To cash in on their poor run, Majumder stepped up and established a rice bran mill in Bogura in 2012.

"We have been exporting rice bran oil in crude form, mainly to India, since 2015," he told The Business Standard.

Within a few years, Majumder's mills became the market leader. "Since 2018, we have been exporting the most amount of crude rice bran oil from Bogura," he noted.

His mill produces 150-160 tonnes of oil per day and the whole amount is exported to India.

Soybean meal export grows too

Last year, jute sacks and yarns, the second most exported item, amounted to Tk150 crore in exports to the markets of India and Singapore, a rise of Tk30 crore from 2020.

Exports of soybean products (Soybean meal, De oiled soybean meal), which has risen to the third position in the export list after having pushed the irrigation pump to fourth, has made a profit of Tk35 crore in 2021.

There is no significant information available about exports of soybean products from Bogura in the previous years.

Irrigation pumps made in Bogura are in great demand all over the country. Irrigation pumps are also exported abroad after meeting local demand. Some Tk1 crore worth of irrigation pumps were exported from Bogura last year. The receipts amounted to almost the same in the previous years.

According to traders, once the global market overcomes disruptions caused by the pandemic, it is possible to generate record export output from various agricultural products from Bogura, as it is one of the major agricultural districts in the north.

Traders have been exporting potatoes grown in Bogura for more than a decade now, while cabbage has been going to Malaysia, Singapore and Taiwan for seven years.

Among other items, sweet pumpkin, gourd and hand-woven caps are also exported from Bogura.

Of all the upazilas in the district, Shibganj records the highest vegetable yields, and most vegetable exports are from this upazila.

Shibganj Upazila Agriculture Officer Al Mujahid Sarkar said, "At least 14,000 tonnes of potatoes were exported from Bogura last year and we are expecting the number to further go up this year. And, last year, 2,400 tonnes of cabbage were exported from Bogura, of which 623 tonnes were shipped to Malaysia."

According to the Department of Agriculture Extension, in addition to agricultural products from Shibganj, various handicraft products made by rural women of Sherpur and Kahalu upazilas are exported abroad. These products are exported to various European destinations, including Germany, Sweden, France, the Netherlands, England, Italy, Norway and also to Australia.

However, these products are not listed with the Bogura Chamber of Commerce and Industry and as such the export earnings are expected to be higher.

Bogura has the reputation for meeting the country's demand for irrigation pumps and export abroad.

Bogura exporters say thousands of small and big foundries have grown at different parts of the city to make irrigation pumps. Centring these factories, a large market for agricultural machinery has developed at the Gohail and Station Road area, where more than two lakh people are working. Bogura's journey of exporting products started in 2000 through the export of irrigation pumps.

At present, some businesses are exporting products with Certificate of Origin from Bogura Chamber of Commerce and Industry. Many are also exporting products with Certificate of Origin from Dhaka, Chattogram, and Narayanganj Chambers. Now, Bogura-made products are going to Europe, Middle East, and Australia besides India and Malaysia.

The largest market for Bogura-made jute yarns, twine and bags is in India. These jute products are exported by Hasan Jute Mills, Bogura Jute Mills Limited and Ma Traders.

Traders say there is a huge demand for Bogura-made products outside the country, especially in India. But the export has been disrupted significantly due to the ongoing coronavirus pandemic.

Besides, due to high prices of raw jute, it has become difficult to produce such items, they add.

According to the agriculture department, about 1.5 lakh irrigation pumps are required every year across the country. India is a big market for exporting the irrigation pumps.  The foundry factories of Bogura also make agricultural equipment.

Last year, Rony Engineering Workshop and Milton Engineering exported centrifugal pumps and spare parts worth Tk15.58 lakh to India.

Abdul Matin Sarkar, managing director of the company, said the best pump in the whole country is made in Bogura. But traders have suffered setbacks because of the pandemic.

"If we can avail low-interest loans, we can turn their businesses around. Besides, more new entrepreneurs will be able to export products to different countries," he told TBS.

Last year, Raihan Traders alone exported Tk2.3 crore worth of potatoes to Sri Lanka. Md Shahidul Islam, owner of Raihan Traders, said potatoes produced in Rangpur and Thakurgaon are more in demand than those in Bogura.

"Brunei and Bahrain are potential big markets for exporting potatoes. Keeping it in mind, the agriculture department should provide assistance to the potato sector," he added.

Selling different types of trees has added a new dimension to the export market. Satvai.com, an online nursery, which is a member of Bogura chamber of commerce, exported Tk6.53 lakh worth of mango and litchi plants to Turkey for the first time.

"These plants are being shipped from the Chattogram port to foreign buyers. There is a huge global demand for plants and we plan to export various species of trees, including fruits and flowers, in a large scale in future," said Shariful Islam Kollol, the owner of satvai.com.

Terming Bogura the lifeblood of the North, Mahfuzul Islam Raj, vice-president of the Bogura Chamber of Commerce and Industry, said, "Bogura-made products are being exported abroad after meeting the local demand and it is generating revenue in crores. If Bogura had an airport, domestic and foreign investments would increase in the region."

"The wheel of the economy will be stronger," he added.

Top News

Rice bran oil / Bogura / Oil

Comments

While most comments will be posted if they are on-topic and not abusive, moderation decisions are subjective. Published comments are readers’ own views and The Business Standard does not endorse any of the readers’ comments.

Top Stories

  • The government controls traffic growth with a series of quotas, taxes and duties that can push up the cost of a car.Photographer: Nicky Loh/Bloomberg
    Singapore's sky-high car prices are warning for global cities
  • FBCCI for electricity rationing to keep production uninterrupted
    FBCCI for electricity rationing to keep production uninterrupted
  • Photo: Mumit M
    Transporting motorcycles on launches banned for 10 days

MOST VIEWED

  • Infographic: TBS
    Dhaka ranks as costliest city again in South Asia for expatriates: Survey
  • Dollar crosses Tk100 mark
    Dollar crosses Tk100 mark
  • World Bank to give Bangladesh $18b IDA loans in next five years
    World Bank to give Bangladesh $18b IDA loans in next five years
  • New monetary policy with higher policy rate comes Thursday
    New monetary policy with higher policy rate comes Thursday
  • Bangladesh expects $5.5b from WB, IMF in budget support
    Bangladesh expects $5.5b from WB, IMF in budget support
  • Qcoom resumes operation
    Qcoom resumes operation

Related News

  • Russian court orders one of world’s largest pipelines to suspend operations
  • China May oil imports from Russia soar to a record, surpass top supplier Saudi
  • Oil prices plunge on dimming demand, recession fears
  • Oil prices bounce back from Tuesday tumble as supply concerns return
  • Oil from US reserves sent overseas as gasoline prices stay high

Features

The sea beach in Kuakata. Photo: Syed Mehedy Hasan

Five places in Southern Bangladesh you could visit via Padma Bridge

9h | Explorer
Genex Infosys Limited is the country's largest call centre with more than 2,000 seats and full-set equipment. Photo: Courtesy

How domestic demand made Genex Infosys a BPO industry leader

10h | Panorama
The OPEC+ group of 23 oil-exporting countries met virtually on Thursday. Photo: Bloomberg

OPEC+ did its job, but don’t expect it to disappear

1d | Panorama
Mirza Abdul Kader Sardar with AK Fazlul Haque, Chief Minister of Bengal, at Haque's reception at the Lion Cinema, Dhaka, 1941. Photo: Collected

Panchayats: Where tradition clings to survival

1d | Panorama

More Videos from TBS

Is Donbas Putin’s next target?

Is Donbas Putin’s next target?

2h | Videos
Hajj Journey: it took more than one year to complete the Hajj

Hajj Journey: it took more than one year to complete the Hajj

3h | Videos
Photo: TBS

Cristiano Ronaldo looking for a new challenge

8h | Videos
Tufan, Sultan catch attention of the buyers

Tufan, Sultan catch attention of the buyers

8h | Videos

Most Read

1
Photo: Collected
Africa

Uganda discovers gold deposits worth 12 trillion USD

2
TBS Illustration
Education

Universities may launch online classes again after Eid

3
Meet the man behind 'Azke amar mon balo nei'
Splash

Meet the man behind 'Azke amar mon balo nei'

4
Build Dhaka East-West Elevated Expressway, relocate kitchen markets: PM
Bangladesh

Build Dhaka East-West Elevated Expressway, relocate kitchen markets: PM

5
File Photo: BSS
Energy

India pulls out of LoC funding for part of Rooppur power transmission work

6
Illustration: TBS
Interviews

‘No Bangladeshi company has the business model for exporting agricultural product’

EMAIL US
contact@tbsnews.net
FOLLOW US
WHATSAPP
+880 1847416158
The Business Standard
  • About Us
  • Contact us
  • Sitemap
  • Privacy Policy
  • Comment Policy
Copyright © 2022
The Business Standard All rights reserved
Technical Partner: RSI Lab
BENEATH THE SURFACE
A customer checks a knife at a blacksmith’s shop at the capital’s Karwan Bazar. Knives and other Qurbani tools are in huge demand as the country prepares to celebrate Eid-Ul-Azha. Photo: Rajib Dhar

Contact Us

The Business Standard

Main Office -4/A, Eskaton Garden, Dhaka- 1000

Phone: +8801847 416158 - 59

Send Opinion articles to - oped.tbs@gmail.com

For advertisement- sales@tbsnews.net