Bangladesh : Refiners seek to raise edible oil prices again
Bangladesh’s edible oil refiners urged the government to adjust soybean and palm oil prices, citing rising global rates. The government previously raised prices and reduced VAT to stabilize the market. With Ramadan approaching, concerns over supply shortages persist. The country relies heavily on imports, and officials are urged to curb syndicate-driven price manipulation and ensure adequate stock.
In just one month after substantially increasing the soybean- oil prices, local refiners have again proposed raising edible-oil prices on the domestic market on excuse of increased rates in the international market, industry insiders said.
The Bangladesh Vegetable Oil Refiners’ and Vanaspati Manufacturers’ Association (BVORVMA) requested the commerce ministry on Monday to adjust the prices of soybean and palm oil commensurate with the global market.
The association also pointed out that they submitted the price hike proposal as per a decision of its meeting with the Ministry of Commerce last month.
“After analysing the prices of crude soybean and palm oil in the global market, it is necessary to adjust the prices in the domestic market,” it said, arguing that the price adjustment is necessary to ensure normal supply of the key item during the upcoming holy month of Ramadan.
The government on December 09 last, raised the maximum retail price of soybean oil by Tk 8.0 a litre to Tk 175 amid a sudden market crisis.
The MRP of loose soybean-oil and palm oil fixed at Tk 157 per litre each, commerce adviser Sheikh Bashir Uddin announced at a press briefing about the new pricing decided at a meeting with the local refiners and edible-oil traders held at the secretariat.
The MRP of five litre bottled soybean oil has been fixed at Tk 852, according to the BVORVMA.
The commerce adviser explains the crisis and the price-hike by saying that the price of edible oils increased 20 per cent on the international market.
On April 18, the big-business refiners increased edible-oil prices with the commerce ministry’s nod. They raised the prices by Tk 4.0 a litre to Tk 167.
Also, the retail prices of loose soybean oil were set at Tk 149 per litre with a Tk 2.0-per-litre increase.
Local refiners in recent months had pressed the government several times to increase edible-oil prices in the light of the substantial price rises on the international market, industry-insiders say.
Crude soybean-oil prices on the international market were around US$1,000-1,050 per tonne in April, which shot up to $1,200 now, said BVORVMA.
Meanwhile, in a report issued in late 2024, the home ministry sounded alarm about a possible edible-oil crisis during the holy month of Ramadan in March, 2025 and suggested ensuring an adequate stock of the key essential.
The ministry reminded that various syndicates of producers, importers, and dealers hike edible-oil prices by pressuring the government and also control the market at their sweet wish.
The government recently reduced VAT on the import, processing, and trading of soybean and palm oils to lower their prices, responding to the demands of refiners and importers.
The finance ministry announced VAT exemptions at the import and production stages of edible oils in two separate notifications on October 17, 2024 in major fiscal interventions.
The VAT on local production and trading of soybean and palm oils was waived, while that on refined and crude soybean and palm oils at the import stage was reduced from 15 per cent to 10 per cent.
The facilities remained effective until December 15 last year.
The country’s annual demand for edible oils is 2.4-2.5 million tonnes, with over 95 per cent met with imports. In FY24, the country imported around 2.3 million tonnes of non-refined edible oils, said the commerce ministry.
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Source : The Financial Express
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