Bangladesh : Shortage of soya bean oil persists despite price hike
Bangladesh’s soybean oil market remains unstable despite a recent government price hike, with shortages persisting in retail outlets. Supply constraints, rising global prices, and higher input costs have strained availability. While officials expect improvement soon, limited distribution and strong demand continue to push prices above official levels.
Despite a fresh government price hike, the soya bean oil market has yet to stabilise, with supply shortages persisting across retail shops in the capital.
On April 29, the government raised the price of bottled soya bean oil to Tk 199 a litre from Tk 195, unpackaged variety to Tk 180 from Tk 176 and that of 5-litre bottle to Tk 975 from Tk 955, while palm oil prices were kept unchanged.
The shortage of soya bean oil has been persistent on the domestic market for over a month, putting consumers under mounting pressure.
Industry insiders said that international prices had risen amid tensions in the Middle East, but the government had not adjusted domestic prices accordingly, even as fuel costs had risen and expenses for packaging, storage and marketing had increased.
However, despite last week’s price hike, the scarcity of soya bean oil persists on the markets, though industry insiders said that the supply would normalise soon.
Visits to some retail shops and kitchen markets in the capital on Monday revealed that the situation has yet to improve on the ground.
Traders said that most companies were still not supplying adequate quantities, leaving shop owners struggling to meet demand.
‘Only a limited volume of products from brands like Fresh, Pushti and Starship are available,’ said Tofayel Ahmed, a trader at Karwan Bazar.
He also said that representatives from major brands such as Teer and Bashundhara had stopped supplying products, with them seldom visiting the markets.
‘We are getting far less than what we order and for some brands, we cannot even reach company officials to place fresh orders,’ said Nazrul Ismal, a retailer at Kallyanpur area.
However, commerce minister Khandaker Abdul Muktadir on Sunday said that the edible oil supply situation was moving towards normalcy.
After visiting the Karwan Bazar kitchen market, he said that the government was working closely to ensure market stability.
‘Supply has already improved following multiple meetings with the dealers and companies,’ he added.
He also said that the price adjustment was necessary due to global market conditions; however, any decline in international prices would be reflected domestically.
‘If global prices come down, local prices would also be adjusted accordingly,’ he added.
Due to a shortage of bottled soya bean oil, especially 1- and 2-litre bottles, demand for unpackaged variants has increased significantly.
On Monday, unpackaged soya bean oil was being sold at Tk 195-200 a litre, although the latest government-fixed price of the item was Tk 180 a litre.
Oil refiners said that the market was in a transition phase following the price adjustment, which would normalise soon.
Nurul Islam Mullah, general secretary of the Bangladesh Vegetable Oil Refiners and Vanaspati Manufacturers Association, said that it would take some time for supply to normalise as companies were adjusting to the new price structure.
‘Packaging and distribution at the revised price take time. The situation should become normal within this week,’ he added.
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Source : NEWAGE
