Bangladesh reviews withdrawal of export ban on soybean meal


FE REPORT | Published: December 14, 2021 10:09:40 | Updated: December 16, 2021 14:52:01


Bangladesh reviews withdrawal of export ban on soybean meal

The government has started reviewing the overall aspects regarding the proposed withdrawal of the existing ban on the export of soybean meal.

The commerce ministry on Monday formed a committee in order to make its recommendations to the government as to whether the current export ban can be lifted or not.

The committee has been given December 31 next as the deadline for submitting its report.

The move came at the request of the different industrial groups and crushing industries concerned.

Senior officials of the commerce ministry and stakeholders were present during the meeting held at the ministry.

Currently, there is an embargo on the export of soybean meal. The commerce ministry put a ban on the export in October last, in a bid to control the rising prices of the key elements of poultry and cattle feed and also to protect the country's dairy and poultry sectors, a source said.

The decision was then taken as per the request of the Bangladesh Dairy Farmers' Association (BDFA).

If the government withdraws the existing ban on the export of soybean meal, prices of dairy and other related food items will see a hike further, said entrepreneurs of the dairy and poultry sectors.

The total demand for soybean meal in Bangladesh is about 2.5-2.6 million tonnes per year.

Of this, 75 to 80 per cent is procured from domestic soybean oil producers. Country imports over 0.35-0.04 million tonnes of soybean meal per year.

Bangladesh, apart from local production, is currently importing soybean meal from various countries, including India, US, Brazil, and Argentina.

About 70-75 per cent of the total cost of producing eggs, fish and poultry is spent on buying feed.

Currently, soybean seeds are being imported with zero duty facility to help flourish the industry.

According to the minutes of a commerce ministry meeting, there is demand for Bangladeshi soybean cake, soymeal and soybean in different countries, including Nepal, Cambodia, India and Thailand.

Annual soybean meal production capacity by the industrial groups, including Meghna, City, Globe, KBC and Jamuna, is around 5.0 million tonnes, mentioned the minutes.

They (industrial groups) claimed the soybean seed crushing factories had been facing huge losses due to the export ban, according to the meeting source.

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