Exports increasing due to the tax-free facility under SAFTA agreement
Though the performance of rice bran oil is not up to the mark in local markets, its export to neighbouring Indian markets has recently witnessed a rise.
The increase in export of rice bran oil to India may be explained by the tax-free facility under the South Asian Free Trade Area (SAFTA) agreement.
According to Commerce Ministry sources, 60,000 tonnes of rice bran oil were exported to India between April and October this year.
It is estimated that this figure could exceed 100,000 tonnes by the end of the year, VS 65,000 tonnes of oil exported in the 2019-20 fiscal year.
According to exporters, rather than importing rice bran oil in consumer packs, India usually imports crude oil in bulk. This is later processed and marketed under their customized brands.
General Manager of Jamuna Agro Products Limited, Subhas Kundu told The Business Standard, "There is a good demand for rice bran oil in India. They import crude oil from us and market it after the refining process. Therefore, exports are increasing."
Meanwhile, according to a report in The Economic Times of India on Monday, the export of rice bran oil from Bangladesh to India could stand at around 1.5 lakh tonnes in 2020-21 fiscal year.
Indian companies are currently producing 1 million tonnes of rice bran oil, and the country has a production capacity of 1.6 million tonnes.