Soybean oil price hits record high of Tk160

Bangladesh Vegetable Oil Refiners and Vanaspati Manufacturers Association has raised soybean oil prices by Tk 7 per litre and palm oil by Tk 3 per litre, which will take effect from today. 

Customers now have to buy bottled soybean oil for Tk 160 per litre while the price of non-bottled soybean oil will be Tk 136 per litre. 

Edible oil traders claimed the rise in prices is a record high.

In September, the association proposed increasing soybean oil prices by Tk 15 per litre. 

On Sunday (October 17), the association leaders and the commerce ministry decided to increase edible oil prices at a meeting.

At the meeting, stakeholders decided to increase the maximum retail price (MRP) of per litre bottled soybean oil from Tk 153 to Tk 160.

Besides, they increased the MRP of five-litre bottled soybean oil from Tk 728 to Tk 760 and per litre palm oil from Tk 116 to Tk 118.

The price of non-bottled soybean oil was increased from Tk 129 to Tk 136. 

But prices will remain unchanged for the oil stocked earlier.

The price difference of non-bottled soybean oil among mill gate, distributor, and retailer has been fixed at Tk 1 per litre, bottled soybean oil at Tk 4 per litre, and five-litre bottled soybean oil at Tk 20.

Per litre bottled soybean oil price at mill gate will be Tk 150, five litres Tk 720, non-bottled soybean oil Tk 134 per litre, and palm oil Tk 116 per litre.

At the distributor level, the price of one litre of bottled soybean oil has been fixed at Tk 154, five litres at Tk 740, non-bottled soybean oil at Tk 135 per litre, and palm oil at Tk 117 per litre.

With the latest increase, edible oil prices rose several times in the last one year although the existing prices are beyond the reach of the common people.  

According to the Consumers Associations of Bangladesh, when soybean oil prices were at the peak in the world market in 2008, the price in Bangladesh was Tk 113 per litre.

Data of the World Bank and the US Department of Agriculture shows in June 2008, the average soybean oil price in the world market was $1,553 per tonne.

In May this year, it reached $1,568 per tonne, breaking all the previous records.

On Monday (October 18), the price fell to $1,308 per tonne.

The Trading Corporation of Bangladesh said soybean oil prices had increased by 50 per cent and palm oil by 53 per cent in a year.

On Monday, soybean oil prices were set at Tk 136 per litre. But in the market, per litre soybean oil sold between Tk 136 and Tk 142.