Bangladesh to import 13m litres of palm oil from US firm for TCB sales

The government will import 13 million litres of refined palm olein for sale at subsidised prices to low-income cardholders under the Trading Corporation of Bangladesh (TCB) programme.

The finance ministry said in a statement that the oil will be procured from US-based Powerhouse General Trading LLC through an open international tender at a cost of Tk 1.81 billion.

In addition, 2,000 tonnes of lentils will be imported in a single lot as part of a plan to procure 8,000 tonnes through an open national tender process.

The lentils will be supplied by ES Services Ltd of Gulshan, Dhaka, at a cost of Tk 156.48 million.

The approvals were given at a meeting of the cabinet committee on government purchase on Thursday, chaired by the finance minister Amir Khosru Mahmud Chowdhury.

Palm olein, a liquid fraction derived from palm fruit kernel oil, is mainly used as edible oil.

Traders in Bangladesh have traditionally imported it from Malaysia, but under recent trade arrangements, the government is now sourcing it from a US company.

Bangladesh signed an Agreement on Reciprocal Trade (ART) with the United States on Feb 9, following nine months of negotiations aimed at avoiding additional tariffs.

Under the deal, Bangladesh has committed to increasing imports from the US, including agricultural products and liquefied natural gas (LNG), while also offering broader market access.

The agreement includes commitments to import $3.5 billion worth of US agricultural goods over five years and $15 billion worth of LNG over 15 years, along with approval to purchase 14 Boeing aircraft for Biman Bangladesh Airlines.

Bangladesh has also agreed not to impose barriers on imports of US meat, poultry, processed meat, catfish and eggs, a provision that has drawn objections from domestic poultry industry stakeholders.

The deal also contains trade provisions that ensure duty-free access for about 2,500 Bangladeshi products in the US market, including pharmaceuticals, agricultural goods, plastics and wood products.

On the other hand, 7,132 US tariff lines will receive duty-free access in Bangladesh, with phased reductions for some products over five to 10 years.