Home ›› 07 May 2022 ›› Editorial
This newspaper has published a series of reports highlighting the price volatility of edible oils. A report published just before the Eid holidays warned of the hoarding of soybean oil by an unholy nexus of millers and importers. The report revealed that a syndicate of millers and importers has limited the supply of edible oil in the retail market to make a massive profit. The dire prediction of a steep price hike after Eid ul Fitr has come true. In fact, immediately before the holidays, soybean and palm oils virtually disappeared from the shelves of kitchen stores and super shops, leading to the immense suffering of the consumers.
The situation is yet to improve despite the refiners’ decision to hike the prices of this kitchen essential by as much as Taka 38 per litre. The Bangladesh Vegetable Oil Refiners & Vanaspati Manufacturers Association hiked the price of refined bottled soybean oil by Tk 38 per litre to Tk 198, and price of the loose variety to Tk 180 per litre. What is most unfortunate is the fact that people have accepted that they have to pay more. But they are being forced to return home empty handed from the markets as the supply is far below the demand. The government must share responsibility regarding the meagre supply.
In a market economy price of any item can and does increase. However, any manipulation must not be tolerated. As indicated earlier, observers had predicted well in advance that a syndicate was up to creating an artificial crisis of this most essential kitchen items. The syndicate, many believe, has proven to be more powerful than relevant government authorities. Ordinary people bear the brunt of artificial crises stemming from market manipulation. This time too, it has been no different.
This price hike of kitchen oils is the latest in a series of such steps much to the woe of the consumers. According to the report on May 5 last year, bottled soybean oil prices per litre stood at Tk 135 – Tk 140, which hit Tk 158 – Tk 165 by April 5 this year. A week ago, retailers sold this kitchen essential for Tk 160 – Tk 170. A similar trend was observed regarding loose soybean oil and palm oil. More disheartening than the price hike has been the sight of shelves bereft of edible oil. And this was allowed to happen despite the authorities concerned repeatedly stressing that there was enough stock available. The shortage is apparently of the artificial variety. Allegations of hoarding have been floating in the market for days on end.
Commerce Secretary Tapan Kanti Ghosh told The Business Post, “Millers have raised edible oil prices, which will be effective from Friday. They have informed the commerce ministry about their decision. As per the law, the refiners set edible oil prices, not the ministry.” This statement by the Commerce Secretary can be interpreted as an attempt to pass the buck. What is quite interesting is that Ghosh basically admitted there was no shortage of this commodity and went on to say that “However, some retail traders are stockpiling the kitchen essential. The authorities are monitoring the situation.” The monitoring of the authorities concerned has failed to yield any result. We do not want to hear inane platitude from high government officials but action on the ground.
Syndicates and cartels are active in virtually every trade sector of the country. What has encouraged these syndicates is that they have been allowed to get away with their misdeeds. Attempts to rein in the syndicates have been half-hearted more often than not. We urge the authorities concerned to come down heavily on these syndicates. Until the government brings errant traders to book, millions of consumers will continue to suffer. Also among the sufferers would be the honest traders as they are deprived of a level playing field.
