Edible oil refiners seek to hike price by Tk 10 per litre
Edible oil refiners in Bangladesh are seeking a Tk 10 per litre price hike, citing the expiry of a VAT reduction that had been in place for two months. The Bangladesh Vegetable Oil Refiners’ and Vanaspati Manufacturers’ Association made the demand, but State Minister for Commerce Ahasanul Islam Titu stated there’s no current scope for price increases. Meanwhile, international market price rises for soybean and palm oil are expected to impact local markets. Talks for essential imports with Russia and India are ongoing.
Edible oil refiners have sought to hike its retail price by Tk 10 per litre, citing that a value added tax (VAT) reduction, which they had been enjoying for the last two months, expired on Monday.If this comes into effect, a one-litre bottle of soybean oil will cost Tk 173, a five-litre bottle Tk 845 whereas unpackaged palm oil Tk 132 a litre.
The Bangladesh Vegetable Oil Refiners’ and Vanaspati Manufacturers’ Association made the demand through a letter to the commerce ministry on Monday.
However, State Minister for Commerce Ahasanul Islam Titu at an event in Dhaka yesterday said there was no scope for increasing edible oil prices now but any such demand could be reviewed.
At a “Meet the Reporters” event organised by Dhaka Reporters Unity, Titu also said he was not aware of the demand.
Abu Bakar Siddique, an oil wholesaler in Karwan Bazar, one of the largest kitchen markets in Dhaka, yesterday said refiners had not informed of any price hike till date.
“We are selling edible oil at the old prices,” he said.
The same was stated by Nurul Alam Sikder, a retailer in Pallabi in the capital.
The refiners said the National Board of Revenue (NBR) cut VAT on the import of soybean and palm oil to 10 percent from 15 percent through a notification on February 7 this year.
It also fully withdrew the indirect tax at the production and trading stages to contain prices of the essential item ahead and during the month of Ramadan.
The facility was meant to stay in effect till April 15.
The temporary VAT facility had led to a reduction of Tk 10 at the retail level, Titu said.
In another letter on April 1, the Bangladesh Trade and Tariff Commission (BTTC) had recommended that the NBR extend the VAT facility until June 30 this year.
Non-refined soybean and palm oil had turned pricier by anywhere from 11 percent to 13 percent in international markets over the last one month, which could have a ripple effect in the local market, it said.
The government has already signed an agreement with Russia for importing essential food commodities, the first of which would be wheat, said Titu.
Similarly, negotiations are underway with India for importing six essential goods year-round under a quota which the neighbouring country would keep for Bangladesh.
The state minister said he would ask the finance ministry to undertake a tariff rationalisation review soon on the import of essential food commodities so that prices go down in the local markets.
This may lead to a loss of government revenue but that could also be prevented through revenue collection from other sources, he added.
The government has also been building some warehouses to keep goods of state-owned Trading Corporation of Bangladesh so that those could be sold year-round at fair prices.
Titu said no decision has been taken so far regarding the import of beef or cattle from Brazil, something a visiting Brazilian minister had offered to facilitate, that too at a low rate.
The Ministry of Fisheries and Livestock is the authority to take the decision, the state minister said.
Source Link: https://www.thedailystar.net/business/economy/news/edible-oil-refiners-seek-hike-price-tk-10-litre-3588526
Recommended for you
