Bangladesh : Edible oil market still remains volatile
Despite efforts to stabilize the edible oil market during Ramadan, volatility persists, causing consumer frustration. Prices of chicken, fish, and vegetables initially rose but have now declined. However, edible oil remains scarce, with soybean oil being sold above the fixed rate due to supply shortages. Authorities have promised improvements, but market manipulation continues, necessitating stricter regulation.
The edible oil market remains volatile despite considerable efforts to stabilise the market during this Ramadan.
Prices of some other essential commodities, however, have declined on the third day of Ramadan, giving some relief to consumers.
With the beginning of the holy month, the prices of chicken, fish, meat, lemons, cucumbers, and brinjal went up due to increased demand. Notably, within two days, the prices of broiler chicken, lemons, and several other items have fallen.
A market visit on Tuesday reveals that broiler chicken is now being sold for Tk 190-200 per kilogramme, down from Tk 210-220 on the first day of Ramadan, which began on Sunday. Similarly, four lemons are now selling at Tk 50-70, which was Tk 70-100 on Sunday.
Lutfar Rahman, a vegetable seller in Mohammadpur Krishi Market, said lemons are currently out of season, while demand has increased tenfold, raising the price significantly.
There has also been a drop in prices of cucumbers and brinjals. On Tuesday, hybrid cucumbers were priced at Tk 50-60 a kg and local cucumbers at Tk 70-90 a kg, marking a Tk 20-30 decline per kg. Overall, this year’s Ramadan market has been static compared to previous years, with fewer instances of disarray.
On the other hand, the price of rice has increased while the prices of sugar, dates, lentils, onions, and potatoes remain relatively low.
Jabbar Ali, a grocer in Rayer Bazar, said, “If there weren’t any problem with the edible oil, this year’s market could be called completely static. Prices of goods are lower compared to the last few months. Some products are experiencing minor price fluctuations due to slight supply shortages, but this will likely be resolved in a few days.”
However, the four-month-long supply crisis of edible oil remains unresolved, causing significant discomfort for consumers.
Soybean oil, in particular, is in short supply, with many unable to find it even after turning to a number of shops. Taking advantage of the situation, unscrupulous sellers are charging higher prices. They are selling oil at inflated prices-from Tk 190-Tk210 a litre against the fixed rate of Tk 175.
Mohsin Ali, a resident of West Dhanmondi, said “One shop has oil in stock, but another is out of stock. After visiting several shops, I had to buy oil for Tk 200 a litre. The syndicate has created an artificial crisis.”
Aminul Hoque, a consumer from Katasur, Mohammadpur, said: “Even when oil is available, many shopkeepers are unwilling to sell it. Some are hiding oil to sell it at higher prices. I visited four shops and bought a two-litre bottle, but the shopkeeper charged me Tk 20 extra for per litre.”
Delwar Hossain, a distributor in Moulvibazar wholesale market in the city, explained that refiners are supplying only 25 per cent of the demand, leading to a shortage in groceries and stores. “Most shops do not have bottled soybean oil in stock, and many are overcharging cashing in on the situation,” he said.
On Monday, Commerce Adviser Sheikh Bashir Uddin assured that the supply of soybean oil will normalise within two days.
SM Nazer Hossain, vice president of the Consumers Association of Bangladesh (CAB), has expressed frustration over the repeated assurances from refiners and the commerce minister regarding the normalisation of the edible oil supply.
He said that such promises have been made for over a month, yet consumers continue to face challenges in accessing edible oil at affordable rates.
“In mid-February, refiners promised that the supply would normalise from February 26. Later, on March 3, the commerce minister reiterated the same assurance. Despite these promises, the situation remains unresolved,” Hossain said, adding that there is now an urgent need for stricter market monitoring and intervention to curb unethical practices in the edible oil market.
Bangladesh has an annual demand of 2.2-2.4 million tonnes of edible oil, of which 95 per cent is imported. Market observers point out that only seven to eight companies usually control the majority of the import and supply, creating an oligopoly.
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Source : Financial Express
