Bangladesh : Edible oil price hike: Govt, millers fail to agree on price adjustment
Bangladesh’s commerce ministry and edible oil companies will meet again Sunday after failing to agree on a price adjustment. Firms raised soybean oil prices by Tk9 per litre without approval, prompting government objections. Traders cite higher global prices, while authorities say the increase is unjustified and lacks legal basis.
The two parties will meet again on Sunday to finalise any price adjustment, according to sources.
The meeting was chaired by Commerce Secretary Mahbubur Rahman. Government officials and executives from top edible oil companies attended, including Amitabh Chakrabarty of City Group, Shafiul Ather Taslim of TK Group, and Taslim Shahriar of Meghna Group of Industries.
Sources said the ministry told traders a Tk9 increase per litre is not acceptable. Both sides could not agree on a lower adjustment, prompting a follow-up meeting on Sunday.
Shafiul Athar Taslim said the government suggested reducing the price, but companies raised it only as much as necessary considering market realities, leaving no room for reduction.
Usually, price adjustments are requested by the Bangladesh Vegetable Oil Refiners and Vanaspati Manufacturers Association. The commerce ministry then evaluates proposals, with the Bangladesh Trade and Tariff Commission analysing appropriate price levels.
The association had been pushing for a hike for several months, citing rising international prices, and formally requested a Tk10 increase per litre for soybean and palm oil on 8 September.
After consultations with the tariff commission and traders on 22 September, the ministry approved only a Tk1 per litre increase, which the association rejected, arguing that the commission’s analysis allowed for a Tk3-4 rise in soybean oil.
The ministry noted potential flaws in the commission’s methodology. At that time, traders did not implement any increase.
On 10 November, the association again requested a price revision, citing market conditions and supply stability. It set new retail prices effective 24 November: bottled oil at Tk199 per litre, five-litre bottles at Tk985, bulk soybean oil at Tk179 per litre, and bulk palm oil at Tk169 per litre.
The commerce ministry has not approved these rates.
Despite this, companies raised soybean oil prices by Tk9 per litre over recent days. Commerce Adviser Sk Bashir Uddin said on Wednesday the government had not been informed, and the hike has no legal basis. The ministry will address the issue in the upcoming meeting.
To Read more about Edible Oil News continue reading Agriinsite.com
Source : The Business Standard
