17/07/2012 (Financial Express Bangladesh) - State-owned trading corporation will import crude and refined palm oil directly from Malaysia-part of its market intervention efforts to stymie commodity traders from profiteering.

"If everything goes accordingly, we hope to float international tender for the procurement in a month or so," chairman of the Trading Corporation of Bangladesh (TCB) Sarwar Jahan Talukder told the FE Monday in the Malaysian capital of Kuala Lumpur.

The purpose of importing palm oil and lentil is to make smooth supply of the essential items throughout the year, specially when some unscrupulous businessmen create artificial crisis of the essential commodities and a cartel hikes the prices, he said after a meeting with some Malaysian palm oil companies.

"We want to have an iron hand on such unscrupulous businessmen by ensuring smooth supply of the daily essentials at an affordable price," the TCB chief said.

TCB is trying to import the palm oil through government to government channel, he said.

Mr Talukder said the corporation will import the essentials for the benefits of consumers and there would be no conflict of interests with local refiners who also import cooking oil from Malaysia.

Initially, he said, his agency will procure 20,000 to 30,000 tonnes per year through international bidding.

The TCB boss said it would take three weeks to get the products while it takes at least two to three months to import from other countries.

The Malaysian palm oil companies were unaware of the provision of direct participation in tenders without any local agent in Bangladesh, he said, adding he let them know that "It is possible to bid for the purchase without any affiliation with a Bangladeshi agent."

Mr Talukder said, "We're also in talks whether the refined palm oil, will be bottled here in Malaysia or not…we don't have our own resources for bottling."

The corporation chairman said the corporation is also exploring the possibility of purchasing lentil from Malaysia, which now re-exports the commodity to India after importing it from Canada and Australia.

A commerce ministry official, who was also present in the meetings with the Malaysian refiners, said TCB is planning to import the refined palm oil and likely to import the product in a 25 litre container.

TCB will sell the palm oil all the year round in order to be competitive in the local market and reduce dependency on local refiners, he added.

The monthly demand for edible oil is 115,000 to 120,000 tonnes, which usually goes up during the holy month of Ramadan.