Bangladesh: Edible oil price hike under review: govt finalising per litre surge
Bangladesh’s edible oil refinery owners have proposed raising soybean and palm oil prices by Tk 10 per litre, citing global price surges. The Ministry of Commerce is reviewing the request, with the Bangladesh Trade and Tariff Commission finalising adjustments. Officials indicate prices may rise, but the exact per-litre increase is still being determined.
Owners of edible oil refineries have been pressuring the government to raise the prices of soybean and palm oil. But, the government has not agreed to the figure of price hike traders have demanded per litre.
However, the government too is willing to allow a partial increase.
The Ministry of Commerce has tasked the Bangladesh Trade and Tariff Commission (BTTC) with reviewing the matter. The Ministry of Commerce is now finalising the exact per-litre price adjustment.
Yesterday, Monday, a meeting was held at the Secretariat chaired by commerce adviser Sk Bashir Uddin to discuss the proposed price hikes and overall market situation.
“The factory owners’ proposed hike is far higher compared to the international market. We are reviewing it. Prices will likely go up, but the exact increase per litre is being calculated.”? said Commerce Secretary Mahbubur Rahman.
BTTC chairman Moinul Khan, commerce secretary Mahbubur Rahman, and members of the Bangladesh Vegetable Oil Refiners and Vanaspati Manufacturers Association were present in the meeting.
After the meeting, neither the adviser nor refinery owners disclosed details to the press.
Speaking to Prothom Alo last night, Commerce Secretary Mahbubur Rahman said, “The factory owners’ proposed hike is far higher compared to the international market. We are reviewing it. Prices will likely go up, but the exact increase per litre is being calculated.”
Factory owners have proposed raising both soybean and palm oil prices by Tk 10 per litre. As the reason, they told the Ministry of Commerce that the international price of soybean oil has already reached as high as US $1,200 per tonne.
Refinery owners have recently sent a letter to the Ministry of Commerce demanding price increase in local market citing global price hikes.
On Sunday, the ministry met with BTTC officials to assess the issue. Yesterday’s meeting followed up with refinery owners and other stakeholders.
Reportedly it has been decided in the meeting that the new price will be fixed considering international market rates, BTTC’s formula, and discussions with traders.
Factory owners have proposed raising both soybean and palm oil prices by Tk 10 per litre. As the reason, they told the Ministry of Commerce that the international price of soybean oil has already reached as high as $1,200 per tonne.
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Source : Ukr Agro Consult
