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1.0 INTRODUCTION

1.1 Background

For five thousand years palm has been used as human food. It has beenoriginated from Africa. Palm tree was planted in 1848 in Indonesia and in

1911 in Malaysia for aesthetic beauty. In 1917 Malaysia first started

commercial production of oil palm. Sensing its importance after about 50

years Malaysian government took huge steps to cultivate palm and

started importing from 1966 and now became one of the greatest palm oil

producing country in the world in course of time.

Bangladesh yearly needs 23.2 Metric Tons of edible oil. 70% of which are

imported from the foreign countries. From one source 80% of the

imported oil is palm oil and the rest is soybean. While the price of edible

oil is increasing like a mad horse being independent in edible oil

production is a must. In this moment everybody should focus on this issue

as the prospect of palm oil production in Bangladesh is very bright.

1.2 Problem and Issues

Large part of edible oil is imported from foreign countries. For which huge

amount of currencies goes to other countries and dependency on edible

oil exporting countries are increasing day by day as well. In this situation

cultivation of oil palm can create a new horizon.

At present the oil is extracted from the fruit by hand in a very small scale

for domestic purpose. If a long term planning can be made for large scale

production of palm oil, it can change the whole economy of Bangladesh.

We can export the oil after meeting our local demand. We can take a

nationwide project in such a manner in which all the concerned entities

can be used in a collaborative way.

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1.3 Objectives

1.3.1 Broad Objective

The major objective of the report is to introduce large scale commercial

production and distribution of palm oil in Bangladesh with a professional

perspective.

1.3.2 Specific Objectives

To get better orientation about the modern production process with

the help of state of art technologies.

To analyze the distribution system of palm oil for having an efficient

and dynamic value chain.

To elucidate existing drawbacks in this industry and to find ways to solve

them.

To identify prospective uses of palm oil.

1.4 RationaleCurrently 80% of the edible oil used in our country is being imported.

70% of this is palm oil. If we can produce in our country in a large scale

surely the price of edible oil will come down. Again palm oil can be

produced 12 times more per hectares than soybean oil. The climate of

Bangladesh is very conducive for producing palm oil.

The beneficiaries of producing and distributing palm oil are as follows:

General people

Related industries

Researchers

Government

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Discussions with commercial experts to spot the existing distribution

mechanisms

1.6.2 Secondary Sources of Data

The secondary data will be collected from different publications related to

the production and distribution of palm oil. The secondary sources are;

journals, articles, internet and so on.

1.6.3 Data Collection Method

For the organization part information will be collected through differentpublished articles, journal, and books. Basic production and distribution

information will be collected through informal discussions with agricultural

and commercial experts. Questionnaire would be used as data collection

tools.

2.0 PRESENT SCENARIO OF EDIBLE OIL MARKET

For last few couples of years, palm oil occupied 70% share of countys

edible oil market, but in 2007 its market share declined to about 60%.

However, from the beginning of 2008, palm oil is regaining its position and

currently occupying again 70% share of countrys edible oil market. As per

import information, in 2008, a quantity of 816,000 tonnes of palm oil was

imported in the country which is about 74% of the total import of oils and

fats in that year. As the country has huge refining capacity, mainly crudepalm oil/olein at the ratio of 15:85, on an average, are imported in the

country. Price competitiveness, quality, change of food habits - specially

in urban areas, stagnant indigenous production etc. are contributing

together in the increasing trend of import of crude palm oil/olein vis--vis

consumption of refined/super olein in the country.

As the countrys per capita consumption of total oils and fats was in

increasing trend in pace with economic growth and rapid urbanization,

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import of oils and fats also being increasing steadily in pace with the

upward trend of consumption.

Under mentioned chart would give a picture about the consumption trend

of various oils and fats in the country since 2001 to 2007, which would

show that consumption of palm oil has been increased substantially

during the recent years surpassing refined soyabean oil, which was

dominating the market for decades and traditionally preferred mustard oil.

Although the consumption of palm oil declined in 2007 due to substantial

high price of the same in the local market in pace with the international

market, it is again on increasing trend in 2008.

Source: Bangladesh Bureau of Statistics, Oil World and MPOC Market

Intelligence

Bar chart on import trend of major 3 edible oils in the country during 2001

to 2008, furnished hereunder establishes that import of palm oil being

increased steadily since 2001 compared to other two major edible oils

consumed in the country. Although import of palm oil decreased in 2007

compared to 2006, but it picked up again in 2008 when the import of palm

oil increased by about 15% compared to 2007.

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Year Soyabean Palm Mustard

000 tones2001 464 380 952002 386 436 45

2003 362 498 702004 356 644 482005 210 931 332006 301 887 522007 495 709 572008 217 816 27

Source: Oil World & MPOC- Dhaka office

Due to economic condition of major segment of 150 million populations of

the country, almost 75% of the total oils and fats consumed annually are

sold in loose form, where palm olein is dominant and the rest 25% market

share is under consumer packs, where soyabean oil is in leading position

and palm oils position is second. Numbers of palm olein brands namely,

Meizan, Natural, Pure, Family, Dada Super, Shakti etc. are being marketed

in consumer packs in Bangladesh. Observing the demand of palm olein

brands, refiners are being encouraged to launch more and more palm

olein brands in consumer packs.

3.0 PALM OIL IN BANGLADESH

The liquid gold of green tree has appeared as the beaconing of new hope

before the people of Bangladesh. The palm oil tree changed the fate of

the South East Asian countries. Recently it has been giving amazing

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production in our country. If the palm revolution can be spread throughout

the whole country, ten thousand crore taka can be saved which

Bangladesh spends every year in the importation of edible oil.

Bangladesh is deficit in oils and fats since pre-liberation period and was

dependent on imported oils. Palm oil was first introduced in Bangladesh in

early 70s just after liberation to meet the growing demand. As there was

no facility for refining of crude palm oil in Bangladesh, only refined palm

olein, which is locally known as palm oil, was used to be imported which

continued till early 90s. During this period, refined olein generally, was

being imported mainly from Singapore. During that time imported olein

used to be distributed through govt. rationing system, besides, private

trading. Because of its quality as well as price competitiveness compared

to other cooking oils, it earned consumers confidence quickly as good

cooking oil. But in mid 80s, due to malpractices of some unscrupulous

traders coinciding with anti-palm oil campaign by some vested corners,

negative perception about palm oil developed among the consumers of

the country and consumption of palm oil started to decline.

However, import of palm oil in crude form started to arrive again during

early 90s, when local edible oil industries acquired the technical

knowledge of palm oil refining and being equipped with most modern

machineries, these industries started to produce world class refined palm

olein, which received a good response from the market. With the

introduction of double-fractionated palm olein in the later part of 90s,

which is locally known as super olein, the acceptance of palm olein in thecountry rapidly increased and in the year 2002, palm olein managed to

occupy the leading position among major 3-edible oils, namely refined

soyabean oil, refined olein and rape/mustard oil, consumed in the country

which is still continuing. As on today, dozens of palm oil refining plants

equipped with latest Programmable Logic Controlled equipments having

refining capacity ranging from 300-1000 tonnes per day each, are in

operation in the country and producing world class refined olein and superolein. Refineries are situated in and around Dhaka and Chittagong city.

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In Bangladesh, apart from consumption of palm olein and super olein as

cooking oil, annually about 300,000 tonnes of refined olein is being

consumed by the local food processing industries namely, vanaspati,

biscuit, bread and bakery products, fried snack food such as chanachur,potato chips, dal bhaza (fried pulses), instant noodles, condensed milk, ice

cream, sweet meats etc.

3.1 Success Story

A retired government officer named Osman Goni has played the vital role

in the amazing success of palm cultivation. Eighteen years ago giving up

the job as a Tohshildar he started dreaming about palm tree. He had

never seen any palm garden of Malaysia. Hearing about it from his

relatives he became curious. He started with 25 palm seeds. Initially he

was frustrated as the seeds took a long time to sprout. In the Pakutia

village of Ghatail upogila of Tangail, in his daughters residence he

planted some plants. In the hilly region adjacent to Pakutia he planted

some more trees. Osman Gani lost many things in his life for his dream of

palm garden. He was disheartened, when the sufferings reached to the

zenith his son and daughters tried to resist him. At that moment Saif

Ahmed, a business man stood by his side. He himself was a dreamer to

change the lot of Bangladesh. He provided the mental and financial

assistance to Osman Gani . Saif Ahmed along with Osman Gani and his

son Masud established Bangladesh palm development project, which is

recognized as the first non-government institute .K.M Fakhrul Alom, the

country director of Bangladesh, Nepal and Myanmar of Malaysian palm oil

council, stood by their side with advice and other assistances.

The probability of palm oil cultivation had been being discussed among

the specialists for a long time. President Ziaur Rahman once took the

initiative of a palm garden. At the end of the 90s during Awami reign an

initiative was taken by the Bangladesh Army. But later the initiative went

in vein. After that many personal initiatives were taken by some people

who had the experience of working in the palm garden of Malaysia.

Alauddin of Ghatail is one of them who planted some palm plants in front

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of his home five years ago. Four of them have now blessed with fruits.

One KG oil can be gathered from a small bunch. Some of the bunches

have been dead. But Alauddin is very optimistic. Recently he as well as his

wife has been seen to water the plants. Now comes again Osman Goni. Helost his house long ago but and planted the palm plant in front of his

daughters house. He has made a nursery in the yard of his daughters

house. On the news of our arrival Alauddin had fetched some purple

bunch of palm from the hilly region. But the strange thing is that in

Malaysia the weight of a palm bunch is not more than 40 kg where as the

weight of that in Ghatail is 60-65 KG. The size of a palm fruit is also much

bigger in comparison with Malaysia. In Malaysia the rate of oil collection

from the palm fruit is 25% where as it is 37% in Ghatail.

Osman Goni according to his 18 years of experience thinks that Palm

garden is not only feasible in Bangladesh but also consequent. He said

that he has achieved this grand success without any experience. His only

companion was his strong determination. He had encountered obstacles

even from his family so long. Now everyone has come forward. In the tree

plantation movement people are being encouraged to palm tree

nationally. He thinks that the palm cultivation can be very profitable in the

hilly region of Chittagong Hill Tracts, Sylhet and in the hilly region of

Mymensingh. The businessman and organizer Saif Ahmed also thinks like

that. He believes that the Palm cultivation can be spread socially on one

hand it can be helpful to remove poverty and on the other hand

Bangladesh can be self- sufficient in sector of edible oil. Thus a huge

amount of foreign exchange can be saved.

4.0 FEASIBILITY OF PALM OIL BUSINESS IN BANGLADESH

Palm cultivation is in a rudimentary stage in our country. There is no

large scale production and only few individuals are cultivating it in

personal interest. In our success story section we already named them

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and we will proceed on with our analysis based on their experience and

data.

4.1 Cultivation

Osman Goni has sprouted plant from the seeds of own trees. The seed

requires one year to be sprouted. After two years the plant begins to grow

rapidly. It takes 5 years to have fruit. Initially the bunch and fruit remains

small and in course of time both fruits and branches begin to grow bigger.

Osman Goni has got some of the bunch which is 80 kg in weight. In

Malaysia the average weight is generally 20-40 kg.

4.1.1 Soil Requirement

Highland soil with good drainage condition is favorable for palm tree.

Mainly hilly soils and terrace soils are recommended for palm production.

In Bangladesh this type of soil is available in four out of six divisions.

Palm can be cultivated in Dhaka, Chittagong, Sylhet and Rajshahi division.

Large area of these divisions are occupied with either terrace or hilly soil.

4.1.2 Fertilizer Requirement

It does not require fertilizer. But palm trees are generally cultivated along

with leguminous plants. It protects soil erosion and also provides nitrogen

to the soil.

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4.1.3 Topography

Medium to high land is required for palm cultivation.

4.1.4 Climate

Palm tree requires tropical climate. Temperature ranges from 19.5oC to

28.5oC is most favorable for palm tree. Annual amount of rainfall of

1900mm to 3500mm is optimum for palm production.

4.1.5 Nurturing

Palm tree does not need so much care like other oils. Besides, the

production of palm oil per acre is much higher than that of other oils.

4.2 Production per acre

The economic and environmental advantage of palm oil is much more

than other oils. Soya bean, corn or mastered oil is produced again andagain where palm tree gives fruits just after the 4-5 years of plantation

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and it keeps going for 30 years. Palm tree does not need so much care

like other oils. Besides, the production of palm oil per acre is much higher

than that of other oils.

Among all the vegetable oils palm oil production is 605 gallon per acre. In

the same area coconut oil is produced 287 gallons, olive oil 129 gallons,

rapeseed oil 127 gallons, nut oil 113 gallons, sunflower 102 gallons,

mustards oil 61 gallons, soyabean oil 48 gallons, and corn oil 18 gallons.

In comparison with soyabean oil the production of palm oil is 13 times

higher. Besides, the food value of palm oil is more than soyabean and

other oils. From the environmental point of view palm cultivation is

positive. The palm is productive for 30 years and the carbon abundance is

much less in comparison to master and soyabean. Besides after collecting

the fruits the bunch can be processed as fertilizer.

4.3 The indigenous style of Palm oil collection

Among all the edible oils only Palm and olive oil can be eaten without anyprocessing. That is why no mills and refinery is required in collecting palm.

For collecting oil fruit is cut from its bunch and is boiled. After boiling the

palm fruit juice can be collected by the pressure of finger tip. When the

water mixed palm oil is boiled the water becomes evaporated and red

colored oil is found. To get a golden hue the red color is removed through

bleaching. So the vitamin A does not exist. But if the oil is processed in

indigenous style the vitamin A sustains. The collected palm oil can be

used in any cooking purpose. The palm fruit is available in any seasons of

the year and only a few palm trees are enough to maintain the necessity

of a family.

4.4 Health benefits

4.4.1 Healthier Hearts

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Numerous studies have shown that palm oil in the diet lowers total blood

cholesterol and 'bad' LDL cholesterol and increases the 'good' HDL

cholesterol. It contains little to no trans-fats that raise LDL cholesterol and

increase the risk of heart disease. Palm oil also does not promote theformation of plaques in the arteries and has an anti-blood clotting effect,

both which helps prevent heart disease.

4.4.2 Anti-Ageing Palm Oil

Palm oil is rich in Vitamin E. In fact, no other vegetable oil has as much

Vitamin E compared to Palm Oil. Vitamin E is a powerful anti-oxidant,

capable of reducing the harmful types of oxygen molecules (free radicals)

in the body. This means they may help to protect one from certain chronic

diseases, while delaying the body's ageing process.

4.4.3 Preventing Cancer

Palm Oil contains chemical compounds that are scientifically beneficial

towards preventing cancer. One of the easiest ways to prevent cancer is

to avoid consuming hydrogenated fats by selecting food products that use

palm oil or fats made from palm oil. Palm oil-based products are free from

trans fatty acids.

4.4.4 Effect of palm oil on basal metabolic rate

Some available evidence shows that palm oil has a similar metabolic

effect on fat catabolism as unsaturated fatty acids. Thus fresh palm oil is

more beneficial to the body with respect to overall heat production.

4.4.5 Effect of palm oil on body weight, growth and

morphology of tissues

Fats and oil, like other classes of food, exert some degree of influence on

body weight and tissue morphology. Palm oil feeding did result in body

weight values that were lower than those found after feeding highly

unsaturated oil. Study also showed that palm oil contributed to low weight

gain, sparse hair and unhealthy skin in the experimental animals.

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4.4.6 Effect of palm oil on tissues lipid distribution

Recent experiments have demonstrated that palm oil diets lower theplasma levels of triglyceride, LDL cholesterol and do not decrease the

level of HDL-cholesterol. The effect of palm oil on other lipid distribution in

various tissues is similar to that reported for blood cholesterol.

4.4.7 Effect of palm oil on blood pressure and contractile

activity of blood vessels

Palm oil, with its saturated and unsaturated fatty acid components,contributes to the level of blood pressure.

4.4.8 Palm oil and liver enzymes

The liver is an organ for metabolism of various compounds in the body

and also the primary target of oxidative injury. It is more or less altered in

structure in any metabolic disorder. Palm oil seems to have some

protective effect against oxidative damage.

4.5 Other uses of Palm

4.5.1 Bio-fuel

There are a number of advantages in using palm oil for the production of

biofuel. Unlike fossil fuels, the combustion of palm oil biofuel does not

increase the level of carbon dioxide in the atmosphere as the oil is merely

returning carbon dioxide obtained earlier from the atmosphere through

photosynthesis. As such, biofuel is regarded as carbon neutral.

Since carbon dioxide is a greenhouse gas responsible for global warming,

the world benefits by the burning of biofuel instead of fossil fuel.

Additionally, the palm trees that produce oil have simultaneously

absorbed a lot more carbon dioxide during photosynthesis to form

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biomass for the other parts of the plant. The tree continues to absorb

carbon dioxide throughout its life span of 25-30 years.

4.5.2 Skincare and Cosmetic Products

Hot weather and the sun's ultra-violet rays can damage the skin. That's

why people use moisturizing creams and lotions for protection. For added

beauty, they also use cosmetics. Most cosmetic products are made of

palm oil. As a versatile vegetable oil, palm oil is suitable for making

cosmetic products like lipsticks for example. Palm-based cosmetic

products have also been proven to be the best in quality in terms of

moisturisation properties

5.0 ADVANTAGES OF PALM OIL

5.1 Advantages of Palm Oil over Other Edible Oil

Dimensions Palm Oil Other edible oilHealth Cholesterol level is low Cholesterol level is

highRefining Not necessary Necessary (except

olive)Production per acre Higher LowerFertilizer Low HighNurturing Little ExtensivePlant life 30 years 4-5 yearsOxygen Production Higher LowerOther uses Great prospect as bio

fuel

Little prospect as bio

fuel

5.2 Advantages of Bangladesh over Malaysia

Dimensions Bangladesh MalaysiaLabor cost Low HighWeight of bunch 60-65 kg 40 kgOil Content 37% 25%

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6.0 A PROPOSED MODEL IN LIGHT OF MALAYSIAN MODEL

Malaysia is regarded as the pioneer in commercial palm oil production and

distribution. They follow structured and well organized cultivation process,

refining process and distribution. So, following Malaysian model wouldhelp to get insights and necessary knowledge to develop a model of our

own. In this section a model is proposed based on that model that is why

background of Malaysian palm production is also incorporated here.

Planted Area under Oil Palm

In Malaysia the largest oil palm growing states were Sabah, Johor and

Pahang, accounting for about 63% of the total planted area. The rate ofplanting in Sabah has been impressive, considering that commercial

planting in the state only commenced in 1970.

Although commercial planting of oil palm in Malaysia began in 1917,

large-scale cultivation did not take off until the .The growth of the

industry, in terms of planted area since then has been very rapid. In 2001,

the total area planted with oil palm was 3,499,012 hectares, 59.9% or

2,096,856 hectares being in Peninsular Malaysia, 29.4% or 1,027,329hectares in Sabah and 10.7% or 374,828 hectares in Sarawak. The last

decade had seen rapid expansion in the cultivated area in Sabah and

Sarawak; while planting in Peninsular Malaysia had slowed down because

of diminishing availability of new land for the crop.

The similar story also prevails in our country. We have hilly regions

basically in Chittagong, Sylhet, Mymensingh region. So, the cultivation

would be concentrated in those regions. These area also occupy available

lands because not all types of crops are cultivatable here.

6.1 Production

With the rapid expansion in the planted area, the annual production of

palm in Malaysia had increased significantly in Malaysia; the crude palm

oil (CPO) produced in 2001 was 11.8 million tonnes which was 4.6 times

the volume produced in 1980. The increase in production in Sabah was

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particularly impressive, reflecting the aggressive planting policy in the

state and it became the largest CPO producer in 1999. In 2001, Sabah

accounted for 31.5% of the national production. Other major CPO

producing states are Johore, Pahangand Perak in Peninsular Malaysia.Table: Production of Crude Palm Oil in Malaysia (Tonnes)

Region 1980 1990 1995 1999 2000 2001

P. Malaysia 2,394,324 6,094,622 6,094,560 7,427,838 7,221,539 7,477,338

Sabah 156,471 678,995 1,493,623 2,664,516 3,110,320 3,716,168

Sarawak 22,378 107,651 222,363 461,564 520,236 610,282

Total 2,573,173 6,881,268 7,810,546 10,553,918 10,852,095 11,803,788

Source: MPOB (cited in www.mpob.gov.my)

Key Processes in the Production of Palm Oil

The following production process is actually a replication of Malaysian

process with some modification.

Production of Fresh Fruit Bunches (FFB)

The key sub-processes involved in the development of plantations for the

production of fresh fruit bunches (FFB) are shown in Figureand the main

activities for each step are summarized in the following page:

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Figure: Processes in the Production of Fresh Fruit Bunches

18Replanting

Harvesting & Collection

Field Maintenance

Site Preparation

Planning Phase

Field Establishment

Nursery Establishment

Fresh FruitBunches

(FFB)

To Palm OilMill

To Palm OilMill

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Planning Phase

Planning phases for the development of new plantations would involve the

conduct for feasibility studies and an environment impact assessment

(EIA) if the area to be developed is primary or secondary forest in excess

of 500 hectares. An EIA is also required if the development involves

changes in the types of agricultural use of land in excess of 500 hectares.

The EIA study would facilitate the identification potential environmental

and social impacts and development of management plans to mitigate the

adverse effects. The process for the approval of EIA reports is shown in

Figure 4 which is based on the approach adopted by the

Natural Resources and Environment Board, Sarawak.

Nursery Establishment

It commences as soon as the land is found to be suitable and approved by

the respective agencies for development to proceed. Good quality DxP

seedlings are raised in a polybag nursery for about 12 months. Good

nursery practices such as adequate watering, manuring and culling of

seedlings with undesirable characteristics are essential for the production

of vigorous planting materials. A culling rate of up to 25% is commonly

practiced in well managed nurseries but in Bangladesh it is projected

more than 35%.

SitePreparation

It includes land survey, clearing of existing vegetation, establishment of a

road and field drainage system, soil conservation measures such as

terracing, conservation bunds and silt pits and sowing of leguminous

cover crops.

Field Establishment

Activities are lining, holing and planting of poly bag oil palm seedlings at

density of 136 to 148 palms per hectare, depending on the soil type. It is

important that effort is made to obtain full ground coverage by

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leguminous cover crops such as Pueraria javanica and Calopogonium

caeruleum to minimise soil loss through runoff as well as to improve the

soil properties through nitrogen fixation.

Field Maintenance

Operations include weeding, water management, pruning, pest and

disease management and manuring. Integrated pest management

involving a mix of cultural, physical, chemical and biological control

approaches to minimize crop losses to pests is commonly adopted in

plantations. Examples of biological control measures applied include the

use of baculovirus and Metarhizium anisopliae to control the rhinocerosbeetle (Oryctes rhinoceros), control of leaf-eating bagworms and nettle

caterpillars by their natural predators and parasitoids and the use of barn

owls (Tyto alba) (Plates 7 and 8) as the biological agent to control rats.

(Golden Hope Plantations Berhad, 1997). As the cost of fertilisers is the

major component of field upkeep expenditure, plantation companies

generally undertake soil and foliar analyses of individual fields regularly to

assess their nutritional status and determine the appropriate types andquantities of fertilisers required for optimal palm development and

production.

Harvesting and Collection

Harvesting of FFB commences between 24 to 30 months after field

planting, depending on the soil type and agronomic and management

inputs. Harvesting is done manually, using a chisel in young palms and a

sickle mounted on a bamboo or aluminum pole in taller palms. There are

various systems for in-field collection of FFB and transportation to the

palm oil mill. In view of increasing shortage of workers as well as the need

to increase worker productivity, mechanized approaches have been

adopted by plantations, an example being the tractor-mounted grabber.

Replanting

The economic cycle of the oil palm is about 30 years, after which the oldstand is replanted. The zero burning technique of replanting is now

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common commercial practice. However, in some situations, plantations

consider.

Under planting

It is the process in which new seedlings are planted under the old palms

which are thinned out progressively to allow the development of the new

stand.

6.2 Channel of Distribution

Effective distribution is a must for proper commercialization as well as

maintaining the food value. Malaysia also here operates with precisionwhich is also applicable in our countrys case. The distribution

incorporates both domestic and international channels

The pattern of channel of distribution has so far been as follows: the

cooking oil industry of palm oil obtains its raw material from its own

plantation or from other CPO producers, either private or state-owned

companies. Meanwhile, the cooking oil industry of coconut oil obtains its

raw material from collecting trader. The processing industry distributes

the cooking oil it has produced through marketing chain it has developed.

The channel of distribution of palm oil in domestic and overseas market

can be described as follows:

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7.0 PROMOTING PALM OIL IN BANGLADESH

As a new inception of organized palm production and distribution, such

effort requires some creative and focused approach of marketing. Local

production and distribution will help people to enjoy comparatively lower

prices. Moreover, since palm can also be exported to abroad government

will help the industry by taking incentive programs. In addition, as a part

of agriculture sector direct support of government can be expected. To

gain desired response structured marketing strategies will be followed.

Some of the strategies are as follows:

People awareness would be created through campaigns focusinghealth benefit issues.

Lower price can be offered because of the lower production cost and

cost advantages.

Indigenous product consumption campaign would be executed.

Well structured supply chain would be ensured.

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Intermediaries would be offered higher margin to promote specific

brands.

Seeking government incentives for promoting the business

countrywide.

NGOs can take initiatives to popularize palm oil in our rural areas.

8.0 PROBABLE CONSTRAINTS

It takes quite a long period to have fruits and thus first production of

palm oil. So, initially farmers or entrepreneurs have to wait to

generate cash inflow.

In spite of consuming palm oil still soyabean is considered as prime

edible oil. Palm oil still lagging behind in popularity.

Without having governments assistance it is too hard to materialize

such project in large scale.

A group of people who are benefited by the import of Palm oil may

discourage palm oil production in Bangladesh.

Farmers are not sure whether they can market there product, this

deter many farmers to start palm cultivation.

Lack of expertise is also a vital limitation.

9.0 CONCLUSION

Provided the economic and health benefits it is the high time for

Bangladesh to start commercial production and distribution ofpalm

oil. Bangladesh is in a better situation for production of palm oil than

Malaysia, and palm oil production is also more beneficial than other oil

production. The success story of Mr. Goni reveals that palm oil

production in Bangladesh can be more effective. Also we have a lot of

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hilly areas in our country for palm oil cultivation. The weather is also

very much suitable in our country for palm trees. But Government has

to come forward to help businessmen and farmers financially and by

providing the interested stakeholders with experts. Without properknowledge and enough financial support, successes like Mr. Goni can

come, but for commercial production and distribution of palm oil

Government's help and support absolutely necessary.

REFERENCES

Bjorn, F. & Dhalen, F. 1995. Malaysian Palm Oil. Malaysian Palm Oil

Promotion Council. Malaysia.

Rahman, M.R., 2005. Soil of Bangladesh. Soil Resources

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http://thedailystar.net

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