1.0 INTRODUCTION 1.

1 Background
For five thousand years palm has been used as human food. It has been originated from Africa. Palm tree was planted in 1848 in Indonesia and in 1911 in aesthetic beauty. In 191! "ensing its importance after about #$ years alaysia for alaysia first started commercial production of oil palm. alaysian government too% huge steps

to cultivate palm and started importing from 19&& and now became one of the greatest palm oil producing country in the world in course of time. 'angladesh yearly needs ().( etric *ons of edible oil. !$+ of which are imported

from the foreign countries. From one source 8$+ of the imported oil is palm oil and the rest is soybean. ,hile the price of edible oil is increasing li%e 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 'angladesh is very bright.

1.2 Problem and Issues

-arge part of edible oil is imported from foreign countries. For which huge amount of currencies goes to other countries and dependency on edible oil e.porting countries are increasing day by day as well. In this situation cultivation of oil palm can create a new hori/on. At present the oil is e.tracted 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 oil0 it can change the whole economy of 'angladesh. ,e can e.port the oil after meeting our local demand. ,e can ta%e a nationwide pro1ect in such a manner in which all the concerned entities can be used in a collaborative way.

1.3 Objec !"es

1.3.1 Broad Objec !"e
*he ma1or ob1ective of the report is to introduce large scale commercial production and distribution of palm oil in 'angladesh with a professional perspective.

1.3.2 #$ec!%!c Objec !"es

*o get better orientation about the modern production process with the help of state of art technologies. *o analy/e the distribution system of palm oil for having an efficient and dynamic value chain. *o elucidate e.isting drawbac%s in this industry and to find ways to solve them. *o identify prospective uses of palm oil.

1.& Ra !onale
2urrently 8$+ of the edible oil used in our country is being imported. !$+ 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 1( times more per hectares than soybean oil. *he climate of 'angladesh is very conducive for producing palm oil. *he beneficiaries of producing and distributing palm oil are as follows3 4eneral people 5elated industries 5esearchers 4overnment

1.' #co$es and (!m! a !ons

6utrition and savory palm oil is used in more than ninety countries around the world. 7nown for its palatability and wholesomeness0 palm oil has inherent stability which ma%es it ideal oil for domestic and commercial coo%ing.

*he scope of our study primarily concerns about the production and distribution of palm oil in the local mar%et as an alternative of soyabeen oil. oreover0 use of palm oil in various sectors such as dairy firm0 vanaspati0 an alternative of butter ghee. *he plentiful vitamin 8 found naturally in palm oil gives a scope of pharmaceuticals industry to produce vitamin 8 capsule with cheaper cost. Apart from using as edible oil0 the scope of non food uses of palm oil is particularly in the oleo chemical industry. *here are also lots of opportunities in the soap industry and candle industry. Although palm oil production and distribution has a high opportunity in our country0 we will face a ma1or limitation that there is not enough information about the palm oil industry as the mar%et is not matured enough.

1.) *e +odolog, and #ource o% Da a

*he report will be based on both primary and secondary data. *he secondary data will be the main input for the report. *his creates a theoretical basis of the report. *he primary research will be done to %now about the current palm oil production and distribution scenario in 'angladesh.

1.).1 Pr!mar, #ources o% Da a

Following methods will be followed to collect primary data. 9 Informal discussion with agricultural e.pert to get the overview of palm oil

production 9 :iscussions with commercial e.perts to spot the e.isting distribution

mechanisms

1.).2 #econdar, #ources o% Da a

*he secondary data will be collected from different publications related to the production and distribution of palm oil. *he secondary sources are; 1ournals0 articles0 internet and so on.

1.).3 Da a Collec !on *e +od

For the organi/ation part information will be collected through different published articles0 1ournal0 and boo%s. 'asic production and distribution information will be collected through informal discussions with agricultural and commercial e.perts. <uestionnaire would be used as data collection tools.

2.0 PR-#-NT #C-N.RIO O/ -DIB(- OI( *.R0-T

For last few couples of years0 palm oil occupied !$+ share of county=s edible oil mar%et0 but in ($$! its mar%et share declined to about &$+. >owever0 from the beginning of ($$80 palm oil is regaining its position and currently occupying again !$+ share of country=s edible oil mar%et. As per import information0 in ($$80 a ?uantity of 81&0$$$ tonnes of palm oil was imported in the country which is about !4+ of the total import of oils and fats in that year. As the country has huge refining capacity0 mainly crude palm oil@olein at the ratio of 1#38#0 on an average0 are imported in the country. Price competitiveness0 ?uality0 change of food habits A specially in urban areas0 stagnant indigenous production etc. are contributing together in the increasing trend of import of crude palm oil@olein visABAvis consumption of refined@super olein in the country. As the country=s per capita consumption of total oils and fats was in increasing trend in pace with economic growth and rapid urbani/ation0 import of oils and fats also being increasing steadily in pace with the upward trend of consumption. Cnder mentioned chart would give a picture about the consumption trend of various oils and fats in the country since ($$1 to ($$!0 which would show that consumption of palm oil has been increased substantially during the recent years surpassing refined soyabean oil0 which was dominating the mar%et for decades and traditionally preferred mustard oil. Although the consumption of palm oil declined in ($$! due to substantial high price of the same in the local mar%et in pace with the international mar%et0 it is again on increasing trend in ($$8.

"ource3 'angladesh 'ureau of "tatistics0 Dil ,orld and

PD2

ar%et Intelligence

'ar chart on import trend of ma1or ) edible oils in the country during ($$1 to ($$80 furnished hereunder establishes that import of palm oil being increased steadily since ($$1 compared to other two ma1or edible oils consumed in the country. Although import of palm oil decreased in ($$! compared to ($$&0 but it pic%ed up again in ($$8 when the import of palm oil increased by about 1#+ compared to ($$!. Eear ($$1 ($$( ($$) ($$4 ($$# ($$& ($$! ($$8 "oyabean 4&4 )8& )&( )#& (1$ )$1 49# (1! Palm F$$$ tones )8$ 4)& 498 &44 9)1 88! !$9 81&
"ource3 Dil ,orld G

ustard 9# 4# !$ 48 )) #( #! (!
PD2A :ha%a office

:ue to economic condition of ma1or segment of 1#$ million populations of the country0 almost !#+ of the total oils and fats consumed annually are sold in loose form0 where palm olein is dominant and the rest (#+ mar%et share is under consumer pac%s0 where soyabean oil is in leading position and palm oil=s position is second. 6umbers of palm olein brands namely0 ei/an0 6atural0 Pure0 Family0 :ada "uper0 "ha%ti etc. are being mar%eted in consumer pac%s in 'angladesh. Dbserving the demand of palm olein brands0 refiners are being encouraged to launch more and more palm olein brands in consumer pac%s.

3.0 P.(* OI( IN B.N1(.D-#2

*he li?uid gold of green tree has appeared as the beaconing of new hope before the people of 'angladesh. *he palm oil tree changed the fate of the "outh 8ast Asian countries. 5ecently it has been giving ama/ing production in our country. If the palm revolution can be spread throughout the whole country0 ten thousand crore ta%a can be saved which 'angladesh spends every year in the importation of edible oil. 'angladesh is deficit in oils and fats since preAliberation period and was dependent on imported oils. Palm oil was first introduced in 'angladesh in early =!$s 1ust after liberation to meet the growing demand. As there was no facility for refining of crude palm oil in 'angladesh0 only refined palm olein0 which is locally %nown as palm oil0 was used to be imported which continued till early =9$s. :uring this period0 refined olein generally0 was being imported mainly from "ingapore. :uring that time imported olein used to be distributed through govt. rationing system0 besides0 private trading. 'ecause of its ?uality as well as price competitiveness compared to other

&

coo%ing oils0 it earned consumer=s confidence ?uic%ly as good coo%ing oil. 'ut in mid =8$s0 due to malpractices of some unscrupulous traders coinciding with antiApalm oil campaign by some vested corners0 negative perception about palm oil developed among the consumers of the country and consumption of palm oil started to decline. >owever0 import of palm oil in crude form started to arrive again during early =9$s0 when local edible oil industries ac?uired the technical %nowledge of palm oil refining and being e?uipped with most modern machineries0 these industries started to produce world class refined palm olein0 which received a good response from the mar%et. ,ith the introduction of doubleAfractionated palm olein in the later part of =9$s0 which is locally %nown as super olein0 the acceptance of palm olein in the country rapidly increased and in the year ($$(0 palm olein managed to occupy the leading position among ma1or )Aedible oils0 namely refined soyabean oil0 refined olein and rape@mustard oil0 consumed in the country which is still continuing. As on today0 do/ens of palm oil refining plants e?uipped with latest HProgrammable -ogic 2ontrolledI e?uipments having refining capacity ranging from )$$A1$$$ tonnes per day each0 are in operation in the country and producing world class refined olein and super olein. 5efineries are situated in and around :ha%a and 2hittagong city. In 'angladesh0 apart from consumption of palm olein and super olein as coo%ing oil0 annually about )$$0$$$ tonnes of refined olein is being consumed by the local food processing industries namely0 vanaspati0 biscuit0 bread and ba%ery products0 fried snac% food such as chanachur0 potato chips0 dal bha/a Jfried pulsesK0 instant noodles0 condensed mil%0 ice cream0 sweet meats etc.

3.1 #uccess # or,

A retired government officer named Dsman 4oni has played the vital role in the ama/ing success of palm cultivation. 8ighteen years ago giving up the 1ob as a *ohshildar he started dreaming about palm tree. >e had never seen any palm garden of alaysia. >earing about it from his relatives he became curious. >e started with (# palm seeds. Initially he was frustrated as the seeds too% a long time to sprout. In the Pa%utia village of 4hatail upogila of *angail0 in his daughter=s residence he planted some plants. In the hilly region ad1acent to Pa%utia he planted some more trees. Dsman 4ani lost many things in his life for his dream of palm garden. >e was disheartened0 when the sufferings reached to the /enith his son and

daughters tried to resist him. At that moment "aif Ahmed0 a business man stood by his side. >e himself was a dreamer to change the lot of 'angladesh. >e provided the mental and financial assistance to Dsman 4ani . "aif Ahmed along with Dsman 4ani and his son asud established 'angladesh palm development pro1ect0 which is Fa%hrul Alom0 the country yanmar of alaysian palm oil council0 stood by recogni/ed as the first nonAgovernment institute .7. director of 'angladesh0 6epal and their side with advice and other assistances. *he probability of palm oil cultivation had been being discussed among the specialists for a long time. President Liaur 5ahman once too% the initiative of a palm garden. At the end of the 9$=s during Awami reign an initiative was ta%en by the 'angladesh Army. 'ut later the initiative went in vein. After that many personal initiatives were ta%en by some people who had the e.perience of wor%ing in the palm garden of alaysia. Alauddin of 4hatail is one of them who planted some palm plants in front of his home five years ago. Four of them have now blessed with fruits. Dne 74 oil can be gathered from a small bunch. "ome of the bunches have been dead. 'ut Alauddin is very optimistic. 5ecently he as well as his wife has been seen to water the plants. 6ow comes again Dsman 4oni. >e lost his house long ago but and planted the palm plant in front of his daughter=s house. >e has made a nursery in the yard of his daughter=s house. Dn the news of our arrival Alauddin had fetched some purple bunch of palm from the hilly region. 'ut the strange thing is that in alaysia the weight of a palm bunch is not more than 4$ %g where as the weight of that in 4hatail is &$A&# 74. *he si/e of a palm fruit is also much bigger in comparison with alaysia. In alaysia the rate of oil collection from the palm fruit is (#+ where as it is )!+ in 4hatail. Dsman 4oni according to his 18 years of e.perience thin%s that Palm garden is not only feasible in 'angladesh but also conse?uent. >e said that he has achieved this grand success without any e.perience. >is only companion was his strong determination. >e had encountered obstacles even from his family so long. 6ow everyone has come forward. In the tree plantation movement people are being encouraged to palm tree nationally. >e thin%s that the palm cultivation can be very profitable in the hilly region of 2hittagong >ill *racts0 "ylhet and in the hilly region of ymensingh. *he businessman and organi/er "aif Ahmed also thin%s li%e that. >e believes that the Palm cultivation can be spread socially on one hand it can be

helpful to remove poverty and on the other hand 'angladesh can be selfA sufficient in sector of edible oil. *hus a huge amount of foreign e.change can be saved.

&.0 /-.#IBI(IT3 O/ P.(* OI( BU#IN-## IN B.N1(.D-#2

Palm cultivation is in a rudimentary stage in our country. *here is no large scale production and only few individuals are cultivating it in personal interest. In our Hsuccess storyI section we already named them and we will proceed on with our analysis based on their e.perience and data.

&.1 Cul !"a !on

Dsman 4oni has sprouted plant from the seeds of own trees. *he seed re?uires one year to be sprouted. After two years the plant begins to grow rapidly. It ta%es # years to have fruit. Initially the bunch and fruit remains small and in course of time both fruits and branches begin to grow bigger. Dsman 4oni has got some of the bunch which is 8$ %g in weight. In alaysia the average weight is generally ($A4$ %g.

&.1.1 #o!l Re4u!remen

>ighland soil with good drainage condition is favorable for palm tree. ainly hilly

soils and terrace soils are recommended for palm production. In 'angladesh this type of soil is available in four out of si. divisions. Palm can be cultivated in :ha%a0 2hittagong0 "ylhet and 5a1shahi division. -arge area of these divisions are occupied with either terrace or hilly soil.

&.1.2 /er !l!5er Re4u!remen

It does not re?uire fertili/er. 'ut palm trees are generally cultivated along with

leguminous plants. It protects soil erosion and also provides nitrogen to the soil.

&.1.3 To$ogra$+,
edium to high land is re?uired for palm cultivation.

&.1.& Cl!ma e
Palm tree re?uires tropical climate. *emperature ranges from 19.# o2 to (8.#o2 is most favorable for palm tree. Annual amount of rainfall of 19$$mm to )#$$mm is optimum for palm production.

&.1.' Nur ur!ng

Palm tree does not need so much care li%e other oils. 'esides0 the production of palm oil per acre is much higher than that of other oils.

&.2 Produc !on $er acre

*he economic and environmental advantage of palm oil is much more than other oils. "oya bean0 corn or mastered oil is produced again and again where palm tree gives fruits 1ust after the 4A# years of plantation and it %eeps going for )$ years. Palm

1$

tree does not need so much care li%e other oils. 'esides0 the production of palm oil per acre is much higher than that of other oils. Among all the vegetable oils palm oil production is &$# gallon per acre. In the same area coconut oil is produced (8! gallons0 olive oil 1(9 gallons0 rapeseed oil 1(! gallons0 nut oil 11) gallons0 sunflower 1$( gallons0 mustards oil &1 gallons0 soyabean oil 48 gallons0 and corn oil 18 gallons. In comparison with soyabean oil the production of palm oil is 1) times higher. 'esides0 the food value of palm oil is more than soyabean and other oils. From the environmental point of view palm cultivation is positive. *he palm is productive for )$ years and the carbon abundance is much less in comparison to master and soyabean. 'esides after collecting the fruits the bunch can be processed as fertili/er.

&.3 T+e !nd!genous s ,le o% Palm o!l collec !on

Among all the edible oils only Palm and olive oil can be eaten without any processing. *hat is why no mills and refinery is re?uired in collecting palm. For collecting oil fruit is cut from its bunch and is boiled. After boiling the palm fruit 1uice can be collected by the pressure of finger tip. ,hen the water mi.ed palm oil is boiled the water becomes evaporated and red colored oil is found. *o get a golden hue the red color is removed through bleaching. "o the vitamin A does not e.ist. 'ut if the oil is processed in indigenous style the vitamin A sustains. *he collected palm oil can be used in any coo%ing purpose. *he 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.

&.& 2eal + bene%! s

&.&.1 2eal +!er 2ear s
6umerous studies have shown that palm oil in the diet lowers total blood cholesterol and MbadM -:- cholesterol and increases the MgoodM >:- cholesterol. It contains little to no transAfats that raise -:- cholesterol and increase the ris% of heart disease. Palm oil also does not promote the formation of pla?ues in the arteries and has an antiAblood clotting effect0 both which helps prevent heart disease.

11

&.&.2 .n !6.ge!ng Palm O!l

Palm oil is rich in Nitamin 8. In fact0 no other vegetable oil has as much Nitamin 8 compared to Palm Dil. Nitamin 8 is a powerful antiAo.idant0 capable of reducing the harmful types of o.ygen molecules Jfree radicalsK in the body. *his means they may help to protect one from certain chronic diseases0 while delaying the bodyMs ageing process.

&.&.3 Pre"en !ng Cancer

Palm Dil contains chemical compounds that are scientifically beneficial towards preventing cancer. Dne 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 oilAbased products are free from trans fatty acids.

&.&.& -%%ec o% $alm o!l on basal me abol!c ra e

"ome available evidence shows that palm oil has a similar metabolic effect on fat catabolism as unsaturated fatty acids. *hus fresh palm oil is more beneficial to the body with respect to overall heat production.

&.&.' -%%ec o% $alm o!l on bod, 7e!g+ 8 gro7 + and mor$+olog, o% !ssues
Fats and oil0 li%e other classes of food0 e.ert 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. "tudy also showed that palm oil contributed to low weight gain0 sparse hair and unhealthy s%in in the e.perimental animals.

&.&.) -%%ec o% $alm o!l on !ssues l!$!d d!s r!bu !on

5ecent e.periments have demonstrated that palm oil diets lower the plasma levels of triglyceride0 -:- cholesterol and do not decrease the level of >:-Acholesterol. *he effect of palm oil on other lipid distribution in various tissues is similar to that reported for blood cholesterol.

1(

&.&.9 -%%ec o% $alm o!l on blood $ressure and con rac !le ac !"! , o% blood "essels
Palm oil0 with its saturated and unsaturated fatty acid components0 contributes to the level of blood pressure.

&.&.: Palm o!l and l!"er en5,mes

*he liver is an organ for metabolism of various compounds in the body and also the primary target of o.idative in1ury. It is more or less altered in structure in any metabolic disorder. Palm oil seems to have some protective effect against o.idative damage.

&.' O +er uses o% Palm

&.'.1 B!o6%uel
*here are a number of advantages in using palm oil for the production of biofuel. Cnli%e fossil fuels0 the combustion of palm oil biofuel does not increase the level of carbon dio.ide in the atmosphere as the oil is merely returning carbon dio.ide obtained earlier from the atmosphere through photosynthesis. As such0 biofuel is regarded as carbon neutral.

"ince carbon dio.ide is a greenhouse gas responsible for global warming0 the world benefits by the burning of biofuel instead of fossil fuel. Additionally0 the palm trees that produce oil have simultaneously absorbed a lot more carbon dio.ide during photosynthesis to form biomass for the other parts of the plant. *he tree continues to absorb carbon dio.ide throughout its life span of (#A)$ years.

&.'.2 #k!ncare and Cosme !c Produc s

>ot weather and the sunMs ultraAviolet rays can damage the s%in. *hatMs why people use moisturi/ing creams and lotions for protection. For added beauty0 they also use cosmetics. ost cosmetic products are made of palm oil. As a versatile vegetable oil0 palm oil is suitable for ma%ing cosmetic products li%e lipstic%s for e.ample. PalmA based cosmetic products have also been proven to be the best in ?uality in terms of moisturisation properties

1)

'.0 .D;.NT.1-# O/ P.(* OI( '.1 .d"an ages o% Palm O!l o"er O +er -d!ble O!l
:imensions >ealth 5efining Production per acre Fertili/er 6urturing Plant life D.ygen Production Dther uses Palm Dil 2holesterol level is low 6ot necessary >igher -ow -ittle )$ years >igher 4reat prospect as bio fuel Dther edible oil 2holesterol level is high 6ecessary Je.cept oliveK -ower >igh 8.tensive 4A# years -ower -ittle prospect as bio fuel

'.2 .d"an ages o% Banglades+ o"er *ala,s!a

:imensions -abor cost ,eight of bunch Dil 2ontent 'angladesh -ow &$A&# %g )!+ alaysia >igh 4$ %g (#+

).0 . PROPO#-D *OD-( IN (I12T O/ *.(.3#I.N *OD-(

alaysia is regarded as the pioneer in commercial palm oil production and distribution. *hey follow structured and well organi/ed cultivation process0 refining process and distribution. "o0 following alaysian model would help to get insights alaysian palm production and necessary %nowledge to develop a model of our own. In this section a model is proposed based on that model that is why bac%ground of is also incorporated here.

Plan ed .rea under O!l Palm

14

In

alaysia the largest oil palm growing states were "abah0 Oohor and Pahang0

accounting for about &)+ of the total planted area. *he rate of planting in "abah has been impressive0 considering that commercial planting in the state only commenced in 19!$. Although commercial planting of oil palm in alaysia began in 191!0 largeAscale cultivation did not ta%e off until the .*he growth of the industry0 in terms of planted area since then has been very rapid. In ($$10 the total area planted with oil palm was )04990$1( hectares0 #9.9+ or (0$9&08#& hectares being in Peninsular alaysia0 (9.4+ or 10$(!0)(9 hectares in "abah and 1$.!+ or )!408(8 hectares in "arawa%. *he last decade had seen rapid e.pansion in the cultivated area in "abah and "arawa%; while planting in Peninsular alaysia had slowed down because of diminishing availability of new land for the crop. *he similar story also prevails in our country. ,e have hilly regions basically in 2hittagong0 "ylhet0 are cultivatable here. ymensingh region. "o0 the cultivation would be concentrated in those regions. *hese area also occupy available lands because not all types of crops

).1 Produc !on

,ith the rapid e.pansion in the planted area0 the annual production of palm in alaysia had increased significantly in alaysia; the crude palm oil J2PDK produced in ($$1 was 11.8 million tonnes which was 4.& times the volume produced in 198$. *he increase in production in "abah was particularly impressive0 reflecting the aggressive planting policy in the state and it became the largest 2PD producer in 1999. In ($$10 "abah accounted for )1.#+ of the national production. Dther ma1or 2PD producing states are Oohore0 Pahangand Pera% in Peninsular
*able3 Production of 2rude Palm Dil in alaysia J*onnesK

alaysia.

Reg!on
P. alaysia

1<:0
(0)940)(4 1#&04!1 ((0)!8 (0#!)01!)

1<<0
&0$940&(( &!8099# 1$!0&#1 &08810(&8

1<<'
&0$940#&$ 1049)0&() (((0)&) !081$0#4&

1<<<
!04(!08)8 (0&&40#1& 4&10#&4 1$0##)0918

2000
!0((10#)9 )011$0)($ #($0()& 1$08#(0$9#

2001
!04!!0))8 )0!1&01&8 &1$0(8( 1108$)0!88

"abah "arawa% *otal

"ource3

PD' Jcited in www.mpob.gov.myK

1#

0e, Processes !n +e Produc !on o% Palm O!l

*he following production process is actually a replication of some modification. alaysian process with

Produc !on o% /res+ /ru! Bunc+es =//B>

*he %ey subAprocesses involved in the development of plantations for the production of fresh fruit bunches JFF'K are shown in Figure and the main activities for each step are summari/ed in the following page3

1&

Figure3 Processes in the Production of Fresh Fruit 'unches

Planning Phase Planning Phase

Nursery Establishment Nursery Establishment

Site Preparation Site Preparation

Field Establishment Field Establishment

Field Maintenance Field Maintenance

Harvesting & Collection Harvesting & Collection

Fresh Fruit Bunches FFB!

"o "oPalm Palm#il #il Mill Mill

Replanting Replanting

1!

Plann!ng P+ase
Planning phases for the development of new plantations would involve the conduct for feasibility studies and an environment impact assessment J8IAK if the area to be developed is primary or secondary forest in e.cess of #$$ hectares. An 8IA is also re?uired if the development involves changes in the types of agricultural use of land in e.cess of #$$ hectares. *he 8IA study would facilitate the identification potential environmental and social impacts and development of management plans to mitigate the adverse effects. *he process for the approval of 8IA reports is shown in Figure 4 which is based on the approach adopted by the 6atural 5esources and 8nvironment 'oard0 "arawa%.

Nurser, -s abl!s+men
It commences as soon as the land is found to be suitable and approved by the respective agencies for development to proceed. 4ood ?uality :.P seedlings are raised in a polybag nursery for about 1( months. 4ood nursery practices such as ade?uate watering0 manuring and culling of seedlings with undesirable characteristics are essential for the production of vigorous planting materials. A culling rate of up to (#+ is commonly practiced in well managed nurseries but in 'angladesh it is pro1ected more than )#+.

#! e Pre$ara !on
It includes land survey0 clearing of e.isting vegetation0 establishment of a road and field drainage system0 soil conservation measures such as terracing0 conservation bunds and silt pits and sowing of leguminous cover crops.

/!eld -s abl!s+men
Activities are lining0 holing and planting of poly bag oil palm seedlings at density of 1)& to 148 palms per hectare0 depending on the soil type. It is important that effort is made to obtain full ground coverage by 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 fi.ation.

18

/!eld *a!n enance

Dperations include weeding0 water management0 pruning0 pest and disease management and manuring. Integrated pest management involving a mi. of cultural0 physical0 chemical and biological control approaches to minimi/e crop losses to pests is commonly adopted in plantations. 8.amples of biological control measures applied include the use of baculovirus and Metarhizium anisopliae to control the rhinoceros beetle JOryctes rhinocerosK0 control of leafAeating bagworms and nettle caterpillars by their natural predators and parasitoids and the use of barn owls J Tyto alba) JPlates ! and 8K as the biological agent to control rats. J4olden >ope Plantations 'erhad0 199!K. As the cost of fertilisers is the ma1or component of field up%eep e.penditure0 plantation companies generally underta%e soil and foliar analyses of individual fields regularly to assess their nutritional status and determine the appropriate types and ?uantities of fertilisers re?uired for optimal palm development and production.

2ar"es !ng and Collec !on

>arvesting of FF' commences between (4 to )$ months after field planting0 depending on the soil type and agronomic and management inputs. >arvesting is done manually0 using a chisel in young palms and a sic%le mounted on a bamboo or aluminum pole in taller palms. *here are various systems for inAfield collection of FF' and transportation to the palm oil mill. In view of increasing shortage of wor%ers as well as the need to increase wor%er productivity0 mechani/ed approaches have been adopted by plantations0 an e.ample being the tractorAmounted Fgrabber=.

Re$lan !ng
*he economic cycle of the oil palm is about )$ years0 after which the old stand is replanted. *he /ero burning techni?ue of replanting is now common commercial practice. >owever0 in some situations0 plantations consider.

Under $lan !ng

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.

19

).2 C+annel o% D!s r!bu !on

8ffective distribution is a must for proper commerciali/ation as well as maintaining the food value. channels *he pattern of channel of distribution has so far been as follows3 the coo%ing oil industry of palm oil obtains its raw material from its own plantation or from other 2PD producers0 either private or stateAowned companies. eanwhile0 the coo%ing oil industry of coconut oil obtains its raw material from collecting trader. *he processing industry distributes the coo%ing oil it has produced through mar%eting chain it has developed. *he channel of distribution of palm oil in domestic and overseas mar%et can be described as follows3 alaysia also here operates with precision which is also applicable in our country=s case. *he distribution incorporates both domestic and international

9.0 PRO*OTIN1 P.(* OI( IN B.N1(.D-#2

As a new inception of organi/ed palm production and distribution0 such effort re?uires some creative and focused approach of mar%eting. -ocal production and

($

distribution will help people to en1oy comparatively lower prices.

oreover0 since

palm can also be e.ported to abroad government will help the industry by ta%ing incentive programs. In addition0 as a part of agriculture sector direct support of government can be e.pected. *o gain desired response structured mar%eting strategies will be followed. "ome of the strategies are as follows3 People awareness would be created through campaigns focusing health benefit issues. -ower price can be offered because of the lower production cost and cost advantages. FIndigenous product consumption= campaign would be e.ecuted. ,ell structured supply chain would be ensured. Intermediaries would be offered higher margin to promote specific brands. "ee%ing government incentives for promoting the business countrywide. 64Ds can ta%e initiatives to populari/e palm oil in our rural areas.

:.0 PROB.B(- CON#TR.INT#

It ta%es ?uite a long period to have fruits and thus first production of palm oil. "o0 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. ,ithout having government=s assistance it is too hard to materiali/e such pro1ect in large scale. A group of people who are benefited by the import of Palm oil may discourage palm oil production in 'angladesh.

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Farmers are not sure whether they can mar%et there product0 this deter many farmers to start palm cultivation.

-ac% of e.pertise is also a vital limitation.

<.0 CONC(U#ION
Provided the economic and health benefits it is the high time for 'angladesh to start commercial production and distribution of palm oil. 'angladesh is in a better situation for produ ction of palm oil than
also more beneficial than other oil production. alaysia0 and palm oil production is *he success story of r. 4oni

reveals that palm oil production in 'angladesh can be more effective. Also we have a lot of hilly areas in our country for palm oil cultivation. *he weather is also very much suitable in our country for palm trees. 'ut 4overnment has to come forward to help businessmen and farmers financially and by providing the interested sta%eholders with e.perts. ,ithout proper %nowledge and enough financial support0 successes li%e absolutely necessary.
r. 4oni can come0 but for commercial

production and distribution of palm oil 4overnmentMs help and support

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'1orn0 F. G :halen0 F. 199#. 2ouncil. 5ahman0 alaysia. .5.0 ($$#. "oil of 'angladesh. "oil 5esources :evelopment Institute alaysian Palm Dil. alaysian Palm Dil Promotion

J"5:IK. :arpan Publication0 :ha%a0 'angladesh. http3@@mpoc.org.bd http3@@mpoc.org.my http3@@thedailystar.net http3@@dailynoyadigonto.com

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