According to the web search results, rice bran oil production business can be profitable in Bangladesh, but it also faces some challenges. Some of the factors that affect the profitability of this business are:
The demand for rice bran oil in Bangladesh is low compared to other edible oils, such as soybean oil and palm oil. This is because many consumers perceive rice bran oil as expensive and less familiar.
The export of rice bran oil is a major source of income for the producers, as they can sell the crude oil at a higher price in the international market, especially in India. However, the government imposed a ban on the export of rice bran oil in May 2021 to control the domestic price of edible oil. This has caused a significant loss of revenue for the producers and forced them to cut or stop their production.
The government has recently decided to procure 0.7 million tonnes of rice bran oil for the Trading Corporation of Bangladesh (TCB) to distribute it among the low-income people at a subsidized rate4. This may create a new market opportunity for the producers and increase their profitability.
The production of rice bran oil also generates a valuable by-product, de-oiled rice bran, which is used as fish and animal feed. This helps the producers save more than $300-400 million per year by reducing the import of feed ingredients1. This also adds to the profitability of the business.
Therefore, rice bran oil production business can be profitable in Bangladesh if the producers can overcome the challenges of low domestic demand and export ban, and take advantage of the new government procurement scheme and the by-product market.