ADB, City Group Partner to Support Food Security in Bangladesh

Photo courtesy of City Group

The Asian Development Bank (ADB) and Rupshi Seed Crushing Limited, a member of the City Group, have signed a US$10 million loan to construct a greenfield energy-efficient, multi-oilseed crushing plant within the City Economic Zone in the Narayanganj District, Bangladesh.

The new plant will replace an older, less efficient facility. It is expected to save 1.3 million cubic meters of water and 1,000 tons of fuel, decrease energy costs by 9 kilowatt-hours per ton, and reduce greenhouse gasses by 1,723 tons annually, while production capacity will remain at 3,000 metric tons of soybean seed crushing per day.

Workers from the original plant will be absorbed into the new one. HSBC is also providing an export credit agency-guaranteed parallel loan.

“The production of edible oils plays a vital role in Bangladesh’s food security. The refined oils are a consistent component in the daily diet of people, while the resulting oilseed cakes are a critical ingredient in the production of animal feed,” said ADB Director General for Private Sector Operations Suzanne Gaboury. “Projects like these that promote the agribusiness value chain play a crucial role in meeting the Sustainable Development Goals, specifically in achieving zero hunger and developing responsible consumption and production.”

The new plant will have the flexibility to process different types of oilseeds, such as soybean, canola, and sunflower, which will improve resilience against crop failure or price fluctuations.

The products of the crushing process, namely oilseed cakes, are used as animal feed due to their high protein content. The new technology will also improve the quality of the oilseed and cakes.

Established in 1972, City Group is one of the largest conglomerates in the country and is a leader in the edible oil industry with a quarter share of the market.

City Group’s main interests currently lie in the production of refined edible oil, flour, sugar, tea, lentils, pulses, rice, and drinking water.

Additional areas of the Group’s investment are in hospitals, banking, insurance, media, stock brokerage, asset management, advertising, printing and packaging, shipbuilding, logistics, and animal feed. It owns and operates a 78-megawatt power plant for captive consumption and marine vessels and trucks for logistics.