Millers, importers limit edible oil supply ahead of Eid

Millers and importers have limited the supply of edible oil in the retail market in a bid to secure larger revenue as they hope for a price hike in accordance with the international market after Eid-ul-Fitr.

Traders claimed that some syndicated groups are hoarding the existing supply of edible oil and supplying less than 10 per cent of the total demand in the retail market.

During a visit to the retail markets of the capital’s Segunbagicha, Malibagh, and Mugda on Wednesday, The Business Post found that the supply of five-litre bottles of soybean oil was scarce. Only a few retail shops were seen with a limited supply of one-litre and two-litre bottles of soybean oil.

Along with bottled soybean oil, the supply of loose soybean and palm oil was also scarce. The supply shortage resulted in Tk 12 to Tk 14 price hike of loose soybean oil, traders at the Segunbagicha Bazar said.

Most of these shops had a limited number of one- or two-litre bottles of soybean oil, while none of the shops in the market had five-litre bottles in their stock. Only two to three shops were selling a litre of bottled soybean oil for Tk 160, and the rest of them were asking Tk 182 to Tk 185 for the same amount.

Palm oil, which was selling for Tk 160 to Tk 162 per litre a week earlier, was being sold for Tk 170 to Tk 175. Mustard oil, which was unaffected by the price hike till last week, has also seen a price hike. The price of one litre of mustard oil is now Tk 360, which was Tk 280 a week ago.

“Some edible oil manufacturers informed us that they will increase the price of bottled soybean oil to Tk 185 per litre after Eid, and that is why they are not supplying enough edible oil to the market,” said Mostafizur Rahman, proprietor of Allahr Daan Store in Segunbagicha.

The government fixed the prices of soybean oil – one litre at Tk 160, two litres at Tk 320, and five litres at Tk 785. However, The Business Post found most of the retailers were asking for more.

The market is getting 80 per cent supply of the existing edible oil stock, said Shafiul Ather Taslim, director (finance and operation) at TK Group of Industries.

“The price of edible oil in the domestic market is significantly lower than the international market. Some unscrupulous businesses must have hoarded a large quantity of edible oil to create such instability and supply shortages in the market,” Shafiul Ather said.