Coconut, palm kernel or babassu oil and fractions market in Bangladesh

Earlier Report Observations

From 2018, when the market volume reached 42 085 t, the introduction of a 25% tariff rate for imports under free trade status established a regulatory framework for these oils. The market then contracted to 34 511 t by 2021, a period during which mandatory vitamin A fortification of edible oils, including palm oil, came into effect, though limited private sector compliance introduced uncertainty affecting overall consumption dynamics.

A recovery to 41 099 t occurred in 2022, and the market stabilized at 40 405 t in 2023. Starting April 2023, direct government price controls on bottled palm and soybean oil helped curb price volatility, while lower palm oil prices shifted consumer preference, supporting sustained demand for palm-based oils within the market.

Into 2024, the maintained price controls and a forecasted 3% rise in palm oil imports pointed to steady demand. Broader economic conditions, including high inflation and currency depreciation, alongside growing competition from other edible oils like mustard, continued to shape the market environment.

Production coconut, palm kernel or babassu oil and fractions in Bangladesh

In kind, 2017-2020, t

Bangladesh was among the world's leading producers of coconut, palm kernel, or babassu oil and fractions from 2017 to 2020, ranking 21st globally by production volume.

Top producers of coconut, palm kernel or babassu oil and fractions, 2017-2020

World map of production of coconut, palm kernel or babassu oil and fractions, 2017-2020

In 2020, Bangladesh produced 23,800 tonnes of coconut, palm kernel, or babassu oil and fractions, marking a 2.6% increase compared to 2019. Production reached its lowest point in 2019 at 23,200 tonnes, while the peak was recorded in 2018 at 25,709 tonnes. The largest decline occurred in 2019 with a 9.8% drop, and the largest increase was also in 2018 with a 9.8% rise.

Annual dynamics of production in Bangladesh in kind, 2017-2020, t

Exports coconut, palm kernel or babassu oil and fractions from Bangladesh

Exports in kind, t

The market showed an unstable trend throughout the period. Export volumes hit their lowest point in 2017 and peaked in 2018, with a 55-fold difference between these years. In 2020, Bangladesh exported 24 tonnes of coconut, palm kernel, or babassu oil and fractions, representing a sharp increase of 383.3% compared to the previous year. The maximum value was recorded in 2018 at 174 tonnes. The largest decline occurred in 2019 with a 97.2% drop, while the largest increase was in 2018 with a 5,438.6% surge.

Annual dynamics of product's exports from Bangladesh in kind, 2017-2020, t

From 2017 to 2020, Nepal accounted for 84.4% of Bangladesh's total exports in kind, with the remaining flows distributed among a broad group of smaller countries.

Structure of product's exports in kind by countries, 2017-2020

World map of product's exports from Bangladesh in kind, 2017-2020

Exports in value, K $ US

There were noticeable fluctuations in market performance during this period. Exports varied by a factor of 53, from a low in 2019 to a high in 2018. In 2020, Bangladesh's exports of coconut, palm kernel, or babassu oil and fractions reached 16,000 US dollars, which is 101.1% higher year-over-year. The minimum value was recorded in 2019 at 8,000 US dollars, while the maximum was in 2018 at 430,000 US dollars. The largest decline occurred in 2019 with a 98.1% drop, and the largest increase was in 2018 with a 2,504.9% rise.

Annual dynamics of product's exports from Bangladesh in value, 2017-2020, K $ US

From 2017 to 2020, Nepal was the almost exclusive buyer of coconut, palm kernel, or babassu oil and fractions from Bangladesh, taking 91.0% of total exports in value terms.

Structure of product's exports in value by countries, 2017-2020

World map of product's exports from Bangladesh in value, 2017-2020

Imports coconut, palm kernel or babassu oil and fractions to Bangladesh

Imports in kind, t

In 2020, Bangladesh's imports of coconut, palm kernel, or babassu oil and fractions totalled 12,195 tonnes, representing a 32.1% drop year-over-year. Between 2017 and 2020, imports decreased by 27.6%, equating to an annualized rate of 10.2%. The maximum value was recorded in 2019 at 17,970 tonnes, and the largest increase occurred in 2019 with an 8.6% rise.

Annual dynamics of product's imports to Bangladesh in kind, 2017-2020, t

From 2017 to 2020, Indonesia and Malaysia were the dominant suppliers of coconut, palm kernel, or babassu oil and fractions to Bangladesh, together accounting for 90.4% of total imports in kind, while other partners played a less significant role.

Structure of product's imports in kind by countries, 2017-2020

World map of product's imports to Bangladesh in kind, 2017-2020

Imports in value, K $ US

Imports of coconut, palm kernel, or babassu oil and fractions into Bangladesh declined for the third consecutive year. In 2020, Bangladesh imported a total of [value_last_year] thousand US dollars of these products, constituting a strong fall of 23.5% year-over-year. Between 2017 and 2020, imports decreased by 60.5%, equating to an annualized rate of 26.7%.

Annual dynamics of product's imports to Bangladesh in value, 2017-2020, K $ US

From 2017 to 2020, Indonesia and Malaysia continued to lead the list of markets for imports in value terms, together accounting for 90.3% of total flows, while other partners played a supplementary role.

Structure of product's imports in value by countries, 2017-2020

World map of product's imports to Bangladesh in value, 2017-2020