Letter of Transmittal
April 5, 2012
Saeed Alamgir Jafar
Institute of Business Administration, University of Dhaka.
Subject: Submission of a report on ‘Edible Oil: Consumer Behavior in Bangladesh’. Dear Sir,
We, herewith, submit the final report titled ‘Edible Oil: Consumer Behavior in Bangladesh’. In this paper, we have investigated the current consumer behavior and future demand state of edible oil in Bangladesh. This report has been assigned to us for the course H-501. Analyzing the report has been a great pleasure and an interesting as well as rewarding experience. In the circumstances, if you have further queries regarding this report, we gladly remain stand by whenever you ask for it.
Syed Saleh Ahmed Sobhan (Roll#125)
: ______________________________ Khondkar Nahin Ahmed (Roll#129)
: ______________________________ Shuvajit Mandal (Roll#135)
: ______________________________ Amitav Adhikary (Roll#136)
: ______________________________ Md. Karim Rezwanur Rahman(Roll#137)
: ______________________________ Sakib Ahmed(Roll#138)
Batch - MBA 46(D)
We heartily express our gratitude to our course instructor, Mr. Saeed Alamgir Jafar, Professor and Chairperson of the Management Development Program, Institute of Business Administration, University of Dhaka, for providing us an opportunity to do this report and guiding us to develop an understanding of the subject in developing the report on “Edible Oil : Consumer Behavior in Bangladesh” We also express our regards to all of those who supported us in any respect during the completion of this report.
Edible oil has always been an integral part of the cuisine culture of Bangladesh. So understanding the consumer behavior towards edible oil is very important to dissect the economics system of Bangladesh. Bangladesh a country with a very low per capita income, the share of food expenditure always takes a large portion of consumer spending. Edible oil has always been a crucial source of fat for the low income population residing both in urban and rural areas. Edible oil being such a necessary commodity, it is very important to understand the trends of supply, price fluctuations, import and export policies, government regulations and consumers buying behavior toward this product. This dissertation has tried to emphasize on these facts and matters through this write up. With the annual import of above one million tons of refined edible oil alongside similar volume of crude oil, Bangladesh has turned into one of the biggest markets of edible oil. For past few years, Malaysia and Indonesia have been exporting refined edible oil to Bangladesh almost on a monopoly basis, as producers from other countries failed to compete with the price offered by Malaysian and Indonesia. According to information availed from Chittagong Port in Bangladesh, import price of refined soya bean oil from Malaysia and Indonesia ranges between US$ 1400-1500 per ton while price of Palm Oil is between US$ 1100-1200 per ton. Bangladeshi importers do not import refined edible oil in flexi tanks. Most of the importers import the oil in steel drums while a few import in PET bottles. Traditionally Bangladeshi consumers are used to consume virgin rape/mustard oil. Before '60s, oil industries in Bangladesh meant only oil seed crushing units. Later on, edible oil refining units started to setup in this country gradually but till late '80s, the growth was very slow. After thatthe demand for refined edible oils started to increase in pace with economic growth and development. To cope up with the situation, new refineries started to set up and simultaneously palm oil refining technology was also introduced in this country owing to its growing demand. Since mid '90s, when the palm oil gradually became popular, more and more palm oil refining units were...
Cited: 1. "Bangladesh Buys More Vegetable Oils." Malaysian Palm Oil Fortune. Malaysian Palm Oil Fortune. Web. 02 Apr. 2012. <http://www.americanpalmoil.com/publications/Fortune/Fortune%20Vol%202%202011.pdf>.
2. "BANGLADESH OILS & FATS PROFILE." Palm Oil Refiners Association of Malaysia. Palm Oil Refiners Association of Malaysia. Web. 02 Apr. 2012. <www.poram.org.my/v1/poram/Bangladesh.pdf>.
3. "Bangladesh: One of the Biggest Markets of Edible Oil." Blitz. 1 Aug. 2011. Web. 02 Apr. 2012. <http://www.weeklyblitz.net/1614/bangladesh-one-of-the-biggest-markets-of-edible>.
4. Chowdhury, K., LA Banu, S. Khan, and A. Latif. "Studies on the Fatty Acid Composition of Edible Oil." Bangladesh Journals Online. Bangladesh Journals Online. Web. <http://www.banglajol.info/index.php/BJSIR/article/view/669>.
5. K. M. Fakhrul Alam. "Palm Oil Plays Important Role in Meeting Edible Oil Demand in Bangladesh." The Financial Express. The Financial Express. Web. 02 Apr. 2012. <http://www.thefinancialexpress-bd.com/2008/08/31/44118.html>.
6. "Malaysian Palm Oil." :: Welcome to Malaysian Palm Oil ::. Web. 02 Apr. 2012. <http://www.mpoc.org.bd/palm_info.php>.
7. "Refined Soybean Oil (human Consumption)." Refined Soybean Oil (Human Consumption) Products Offered By BANDHAN Agrocomm Trading & Distributions Ltd. Bangladesh. Web. 02 Apr. 2012. <http://www.tradekey.com/product_view/id/1113572.htm>.
Please join StudyMode to read the full document