Loose soybean sales ban on cards

The government is planning to ban the sale of loose soybean oil as part of its efforts to prevent edible oil adulteration.

Loose oil sells 80 per cent more in the market than bottled oil. Bangladesh Trade and Tariff Commission has found that palm oil is being sold in the name of loose soybean oil in the market.

Commerce ministry sources said Bangladesh currently imports more palm oil than soybean oil, but loose soybean oil sells more than palm oil in the local market. 

The ministry will check whether palm oil is being sold in bottles as soybean oil. It is collecting samples to control quality.

A rise in edible oil prices in the international market has pushed up the price in the domestic market. After a Commodity Price Monitoring Cell meeting, Commerce Secretary Tapan Kanti Ghosh said the government took steps to prevent any artificial price hike taking advantage of the situation.

He said they intensified market monitoring at various levels, and the government would take more steps.

The market price of this essential commodity depends on the Sales Order (SO) sales in many cases. The government plans to make it mandatory for companies and wholesalers to release edible oil within 15 days of the SO issuance to control prices. 

Wholesale Edible Oil Traders Association President Golam Mawla said that the companies usually supply the goods within 15 days of SO. 

But sometimes, it takes time due to technical glitches. Sometimes there are delays due to jams at the mill gates if there’s a sudden price hike in the international market.

The industries ministry has recently sent a letter to the commerce ministry to make it mandatory to sell loose soybean oil in bottles. 

Additional Commerce Secretary AHM Safiquzzaman told The Business Post that they are alert to ensure only non-adulterated edible is available in the market. 

“The Tariff Commission recently prepared a report after reviewing soybean and palm oil imports and the local market. We are going to take some steps based on this report so that consumers can buy the right product at a reasonable price,” he said.

Besides, a meeting has been held with traders to keep the price of edible oil at a reasonable level, he added.

Meanwhile, to ensure the nutritional value of edible oil and salt, officials of the Directorate of National Consumer Rights Protection have been trained on how to collect and test samples of the two products. 

Switzerland-based Global Alliance for Improved Nutrition and the directorate signed a six-month agreement on Thursday to conduct such training.

According to a Tariff Commission report, Bangladesh imported 5,89,719 tonnes of crude soybean oil and 18,415 tonnes of refined oil in the last fiscal year. 

During the same period, 6,08,134 tonnes of refined and unrefined soybean oil were imported. Meanwhile, 1,74,021 tonnes of crude palm oil and 8,43,034 tonnes of refined palm oil were imported. 

In the last FY, 16,25,190 tonnes of soybean and palm oil were imported – about 63 per cent of it was palm oil. 

In FY19-20, Bangladesh imported 18,02,754 tonnes of soybean and palm oil. Of it, palm oil was 11,09,922 tonnes and soybean oil 6,92,832 tonnes.

“People will eventually stop buying loose edible oil considering health risks. Only 7-10 per cent soybean oil was sold in bottles ten years ago. Thanks to rising purchase power, now over 40 per cent oil is sold in bottles,” Md Shafiul Ather Taslim, director (finance and operations) of TK Group, told The Business Post.

“Till now, 60 per cent oil is being sold in the loose form. A 100 per cent bottled oil sale is impossible overnight. It will take time as it needs more investment and infrastructure development of the sector,” he said. 

About adulteration, he said if the wholesalers or retailers mix palm oil with soybean, or if they sell palm oil disguising it soybean, then the producers or millers are helpless. 

“They can do nothing in this case,” he said, urging the government to take necessary steps and proper action in this regard.