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 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.

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 Rationale
Currently 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

1.5 Scopes and Limitations

Nutrition and savory palm oil is used in more than ninety countries around the world. Known for its palatability and wholesomeness, palm oil has inherent stability which makes it ideal oil for domestic and commercial cooking. The scope of our study primarily concerns about the production and distribution of palm oil in the local market as an alternative of soyabeen oil. Moreover, use of palm oil in various sectors such as dairy firm, vanaspati, an alternative of butter ghee. The plentiful vitamin E found naturally in palm oil gives a scope of pharmaceuticals industry to produce vitamin E capsule with cheaper cost. Apart from using as edible oil, the scope of non food uses of palm oil is particularly in the oleo chemical industry. There are also lots of opportunities in the soap industry and candle industry. Although palm oil production and distribution has a high opportunity in our country, we will face a major limitation that there is not enough information about the palm oil industry as the market is not matured enough.

1.6 Methodology and Source of Data

The report will be based on both primary and secondary data. The secondary data will be the main input for the report. This creates a theoretical basis of the report. The primary research will be done to know about the current palm oil production and distribution scenario in Bangladesh.

1.6.1 Primary Sources of Data

Following methods will be followed to collect primary data. Informal discussion with agricultural expert to get the overview of

palm oil production

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 different published 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 crude palm 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,

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.

Year 2001 2002 2003 2004 2005 2006 2007 2008

Soyabean 464 386 362 356 210 301 495 217

Palm 000 tones 380 436 498 644 931 887 709 816

Mustard 95 45 70 48 33 52 57 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 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 doublefractionated palm olein in the later part of 90s, which is locally known as super olein, the acceptance of palm olein in the country 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 super olein. Refineries are situated in and around Dhaka and Chittagong city.

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 nongovernment 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 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. He lost 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 selfsufficient 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 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 Annual amount of rainfall of 28.5oC is most favorable for palm tree.

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 and again where palm tree gives fruits just after the 4-5 years of plantation and it

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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 any processing. 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 the formation 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 the plasma 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 biomass for the

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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 Health Refining Production per acre Fertilizer Nurturing Plant life Oxygen Production Other uses Palm Oil Cholesterol level is low Not necessary Other edible oil Cholesterol level is high Necessary (except

olive) Higher Lower Low High Little Extensive 30 years 4-5 years Higher Lower Great prospect as bio Little prospect as bio fuel fuel

5.2 Advantages of Bangladesh over Malaysia

Dimensions Labor cost Weight of bunch Oil Content Bangladesh Low 60-65 kg 37% Malaysia High 40 kg 25%

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,

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refining process and distribution. So, following Malaysian model would help 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 of planting 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, largescale 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 1,027,329 hectares 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 particularly impressive, reflecting the aggressive planting policy in the state and it became the largest CPO producer in 1999. In 2001, Sabah accounted for

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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
P. Malaysia Sabah Sarawak Total

1980
2,394,324 156,471 22,378 2,573,173

1990
6,094,622 678,995 107,651 6,881,268

1995
6,094,560 1,493,623 222,363 7,810,546

1999
7,427,838 2,664,516 461,564 10,553,918

2000
7,221,539 3,110,320 520,236 10,852,095

2001
7,477,338 3,716,168 610,282 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 Figure and 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

Planning Phase

Nursery Establishment

Site Preparation

Field Establishment

Field Maintenance

Harvesting & Collection

Fresh Fruit Bunches (FFB)

To Palm Oil To Palm Oil Mill Mill

Replanting

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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%.

Site Preparation
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 leguminous

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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 rhinoceros beetle (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 and quantities 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 old stand 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 precision which 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 focusing health 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 of palm
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 proper knowledge 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 Rahman, M.R., 2005. Soil of Bangladesh. Soil Resources Promotion Council. Malaysia. Development Institute (SRDI). Darpan Publication, Dhaka, Bangladesh. http://mpoc.org.bd

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http://mpoc.org.my http://thedailystar.net http://dailynoyadigonto.com

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