Home ›› 06 May 2022 ›› Front
Soybean oil – which vanished from Bangladesh’s retail and wholesale markets around a week ago – remains unavailable to domestic consumers, despite the refiners’ decision to hike the prices of this kitchen essential once again.
In a press release on Thursday, 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.
The association also hiked the price of refined loose palm oil to Tk 172 per litre, and added that the new rates will be effective from this Friday. Previously, several wholesalers had alleged that the refiners are creating an artificial shortage of the kitchen ingredient to further raise prices.
Industry insiders added that the edible oil prices have been rising due to several factors, mainly due to Indonesia’s recent ban on palm oil exports, climbing prices in the international market, and a supply chain disruption triggered by the delay in local price readjustment.
The Trading Corporation of Bangladesh (TCB) catalogues the steady rise of edible oil prices in local markets. 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 were selling this kitchen essential for Tk 160 – Tk 170. Similarly, the price of loose soybean oil rose from Tk 118 – Tk 126 on May 5 a year ago to Tk 152 – Tk 158 on April 5 this year. The price of this variety was Tk 184 – Tk 186 just a week ago.
The price of loose palm oil per litre was Tk 107 – Tk 110 on May 5 last year, Tk 140 – Tk 144 on April 5 this year, and Tk 165 – Tk 170 a week ago. Super variety of palm oil also witnessed a similar steady rise in price since 2021.
Commenting on the issue, Commerce Secretary Tapan Kanti Ghosh told The Business Post, “Millers have raised the prices of edible oil, which will be effective from Friday. They have informed the commerce ministry about their decision.
“As per the law, the refiners set the prices of edible oil, not the ministry. The price of soybean oil has already gone up in the international market.”
Tapan further said, “We do not understand why there is a shortage of this commodity. The Directorate of National Consumers’ Right Protection is monitoring the matter. Millers have told the agency that they have supplied an adequate amount of the soybean oil in the market.
“However, some retail traders are stockpiling the kitchen essential. The authorities are monitoring the situation.”
Director (Finance and Operation) of TK Group – one of the top edible oil refiners in Bangladesh, Shafiul Athar Taslim, “The supply of soybean oil in the market will return to normal in next 2-3 days, as the local prices of this kitchen ingredient has been readjusted.
“Because of the price readjustment, imports of this commodity will go up too. We have supplied an adequate amount of soybean oil to retail markets, so the shortage has been caused by hoarding of the retailers.”
Bangladesh Vegetable Oil Refiners & Vanaspati Manufacturers Association General Secretary Abul Hashem said, “There has been an acute shortage of soybean oil because we are not getting enough supply from importers and suppliers.
“This issue has also caused the prices of this kitchen ingredient to go up further in the wholesale market.”
City Group Director Biswajit Saha said, “Though soybean oil prices continued to rise in the global market, the government rejected multiple requests from the refiners to hike the price of this kitchen ingredient.
“The government is well aware of the costs of producing soybean oil, and what prices must be set to tackle the shortage of this essential commodity in local markets. The government has plans to meet with edible oil companies after the Eid vacation to discuss such matters.”
23m litre soybean oil arrives in Ctg
Around 22.9 million litres of soybean oil arrived at the Chattogram port on Thursday, while another 13,000-tonne palm oil tanker is set to reach Bangladesh on Friday, according to the Chattogram Port Authority (CPA).
A ship named MV Orient Challenge brought the shipment of unrefined soybean oil from Singapore, reports UNB.
CPA Secretary Umar Farooq also confirmed the matter to the media, adding that Bangladesh’s top four companies – City Group, Sena Kalyan Edible Oil, Bangladesh Edible Oil, and Bashundhara Group have imported the oil.
“The process of unloading imported oil has already begun.”
Indonesia is the world’s top exporter of palm oil. About 90 per cent of Bangladesh’s palm oil demands are usually fulfilled by Indonesia. The country banned palm oil exports since midnight on April 28. According to Chattogram Customs, Bangladesh’s top importers imported around 1,20,000 tonnes of palm oil in April before the Indonesian government’s ban on palm oil exports.
No soybean oil in markets
On a spot visit to the capital’s Karwan Bazar on Thursday, The Business Post found that the soybean oil was still unavailable there, but traders were selling palm oil at Tk 195 per litre.
A wholesaler at the market, Azizul said, “We could not secure
supply from any edible oil company to fulfill consumer demand. So we had to stock up on super palm oil for Tk 190 per litre, which we are selling for Tk 195 per litre.
Echoing the same retailer Monowar Hossain said, “I received no supply of bottled soybean oil for the last 15 days.”
The situation at wholesale and retail markets – including in super shops and malls – throughout the capital city was no different.
Visiting a Shwapno super shop outlet at Uttara-11, the correspondent found no bottles of soybean oil for sale on its shelves. The outlet had only a few bottles of sunflower and rice bran oil.
Sukanto Banik, assistant outlet operation manager, said, “We have been facing shortages of soybean since last month as the companies have only been fulfilling 30 per cent to 40 per cent of consumer demand.
“Our store had no bottles of soybean oil for sale since last Sunday. Several companies told us that the production of edible oil has dropped because the cost of production has gone up.”
Consumers switch to alternatives
The widespread shortage of this essential kitchen ingredient days before the Eid-ul-Fitr have forced many consumers to switch to alternatives such as mustard oil, sunflower oil, and rice bran oil.
Syed Mamun, a consumer buying groceries on Thursday, said, “I tried my best to find a five-litre bottle of soybean oil in both grocery and super shops, but to no avail. So, I bought Sunflower oil instead.”
The government had earlier withdrawn Value Added Tax (VAT) on imports of edible oil and sugar in order to keep the two essentials affordable at the consumer level. Finance Minister AHM Mustafa Kamal made the disclosure on March 10.
According to this ministry, the 20 per cent VAT — 15 per cent at production and 5 per cent at consumer levels — imposed on those essential commodities has been exempted, and the decision will remain in effect till June 30.
