Edible oil supply goes down, prices up

The supply of soybean oil saw a sharp fall in the market since the price hike was proposed.

Retailers have complained that they are not getting soybean oil from dealers or suppliers despite repeated requests. Those who still have the previous stock can sell and many are already out of stock.

Meanwhile, the edible oil price is increasing due to shortage of supply. Soybean and palm oil prices have increased by Tk 4-9 per litre in the last week, they claimed.

It can be seen in Segunbagicha kitchen market in the capital that 2 among 7 shops do not have soybean and palm oil.

Sifat, a shop owner said, “I have been ordering oil for the last two days. But not getting oil supply. What I had was sold out. If i don’t get it now I will stop selling.” Traders have proposed to raise the price of oil. Maybe that’s why they stopped the supply of oil, the supply will be low until the new price comes, he added.

A dealer of an edible oil brand company told The Business Post that refiners have hinted at a price hike in a few days. Oil supply decreased slightly before prices rose. The supply of bottled oil, which is especially in high demand, is greatly reduced.

The supply of oil has decreased slightly. But I am trying to fulfill the market demand as much as possible by getting oil from the company. All company dealers may not be able to do that. So the crisis is being created, he furthered.

According to Trading Corporation of Bangladesh (TCB) price list, soybean oil was sold at Tk 166-175 per litre at the retail level on Sunday which was Tk 162-166 a week ago.

Government fixed the retail price of loose soybean oil is Tk 166 per litre. Bottled oil was sold at Tk 185-190 per liter on Sunday, compared to Tk 180-185 a week ago. The government fixed price of bottled soybean oil is Tk 185 per litre. Loose palm super oil was sold at Tk 145-150 a litre, compared to Tk 140-145 a litre, a week ago. Bangladesh Vegetable Oil Refiners and Vanaspati Manufacturers Association has proposed to increase the price of soybean oil by Tk 20 per liter.

The organization submitted the proposal to Trade and Tariff Commission on August 3. The price of loose soybean oil will be Tk 180 per liter, Tk 205 for one liter bottled oil and Tk 960 for five liter bottled oil, the proposal said.