The Crime Desk: Currently, the market for edible oils, soybean and palm oil, is stable in the international market. With the amount of soybean and palm oil imported in the country as well as in the pipeline, there is no need for a crisis in the upcoming Ramadan. But a month before Ramadan, traders are following the old path of increasing the price of soybean oil.
According to the government’s marketing agency Trading Corporation of Bangladesh (TCB), the price of soybean oil in the open market has increased in the last week. Not only that, bottled soybean oil is not available in the retail market as per demand. This is especially the case in the case of one- and two-liter bottled soybean oil. Retail traders have complained that they are not getting the supply of bottled soybean oil as per demand. As a result, consumers are suffering.
The relevant sources said that every year, millers do the same thing to increase the price of oil before Ramadan. They create an artificial crisis by reducing the supply of soybean in the wholesale, dealer, and retail markets. Later, they increase the price. Retail traders have complained that they are following the same path this time too. Sources in the Commerce Ministry said that the interim government has waived VAT to keep the price of edible oil stable in the country. But now millers are trying to increase the price of oil. In the second week of January, the Edible Oil Traders’ Association proposed to the Commerce Ministry to increase the price of soybean oil.
Commerce Ministry officials said that a proposal to increase the price by Tk 15 per liter has been made. On January 23, Commerce Advisor Sheikh Bashiruddin met with traders. However, no decision was taken in that meeting to increase the price of soybean and palm oil.
In view of the traders’ proposal, the Commerce Ministry has asked the Bangladesh Trade and Tariff Commission to submit a report seeking its opinion. That report has not been submitted yet. Sources in the Bangladesh Vegetable Oil Refiners and Bonaspati Manufacturers Association, an organization of edible oil refinery owners, said that the government made a policy in 2011. According to the policy, the price of soybean oil is supposed to be adjusted from time to time with the global market and domestic costs. Currently, the dollar and other costs have increased. In this situation, we have asked for the price adjustment in accordance with the government’s policy.
It is worth noting that just two months ago, on December 9, the Ministry of Commerce adjusted the prices of soybean and palm oil in response to the proposal of mill owners. At that time, the price of bottled soybean oil was increased by eight taka per liter to 167 to 175 taka, and the price of open soybean oil per liter was increased from 149 taka to 157 taka. In addition, the price of bottled five-liter soybean oil was increased from 818 to 860 taka. But now the price has been proposed again. However, Bangladesh Trade and Tariff Commission Chairman Dr. Mainul Khan said that the price of oil will not increase in the upcoming Ramadan.
Meanwhile, the price of open soybean oil in the market has increased even before the price adjustment as per the proposal. In the last week, the price of open soybean oil in the retail market of the capital has increased by two to four taka.
Traders said that the market does not have the supply of soybean oil as per the demand. As a result, the price of the product is high. The government’s marketing agency, Trading Corporation of Bangladesh (TCB), also reported in its report that the price of soybean oil has increased in a week.
On condition of anonymity, several traders in the retail market said that they are not getting the supply of soybean oil as per the demand. The companies are not supplying the oil properly. They said that if dealers order five cartons of oil, they get one to two cartons. As a result, a kind of crisis has been created in the market.
Traders in Moulvibazar, the largest wholesale market for edible oil in the capital, said in this regard that the market does not have the supply of soybean oil as per the demand. There is some crisis. Millers say that soybeans will arrive in 15-20 days. Then the supply will be normal.
It is worth noting that the country’s annual demand for edible oil is 2.3 to 2.4 million tons. Of this, 2.5 million tons of oil are produced in the country. The remaining 20 to 2.1 million tons of edible oil have to be imported. Of this, the demand during Ramadan is 3 to 3.5 million tons.
It is learned that the government does not want to increase the prices of the product during Ramadan. That is why it has continued the VAT exemption until the end of the fast. Additional Secretary Abdur Rahim Khan, who is in charge of the acting secretary of the Ministry of Commerce, said there is no decision to increase the prices. Soybeans will have to be sold at the current price.
Recently, at an event in the capital, Commerce Advisor Sheikh Bashiruddin said, “I do not see any reason for the prices in the country to increase given the prices of various daily commodities that we are currently seeing in the international market.” At the same event, National Citizens’ Committee Chief Organizer Sarjis Alam said, “A few large daily commodity companies are controlling everything in the country. In this situation, we have to move from a cooperative market system to a competitive market system.”
