Bangladesh : Edible oil prices surge despite ample stock
Edible oil prices in Bangladesh have risen in recent days, with loose soybean and palm oil increasing by Tk 5–7 per litre amid global uncertainty linked to the Iran conflict. Traders also report limited supply of bottled soybean oil, while the government has assured adequate reserves and plans to strengthen market monitoring.
The prices of loose soybean oil and palm oil have risen in the local market despite assurances of sufficient stock and adequate supply, putting financial pressure on consumers.
Over the past three to four days, the prices of loose soybean and palm oil have risen by Tk 5 to Tk 7 per litre at the retail level, while the supply of bottled soybean oil has remained relatively low over the past month, according to traders.
“Even if I pay a higher price, the supply of bottled soybean oil is not available,” said Zakir Hossain, a retailer at Kawran Bazar who has been receiving 100 litres of oil against the demand of 200 litres for the past week.
Over in Chattogram’s wholesale market, edible oil prices have risen too, with traders attributing the rise to global uncertainties triggered by the Iran war.
At the wholesale market in Khatunganj, the price of soybean oil and palm oil have increased by Tk 140 to Tk 150 over the past week. Now, per mound (37.32 kg) of soybean oil is selling for Tk 7,170 and palm oil for Tk 6,060.
The refiners are supplying soybean oil in limited quantities to the market, said Anwar Hossain, a Khatunganj-based wholesale trader.
The impact is already being felt at the retail level. In Chattogram city, the price of loose soybean oil has increased by about Tk 7 per kg over the past four days to Tk 200–202 and loose palm oil prices by around Tk 6 per kg to about Tk 172.
Over in Khulna district, bottled soybean oil has become increasingly difficult to find and the prices have increased accordingly: a five-litre bottle that previously cost Tk 990 is now selling for about Tk 1,060, a one-litre bottle that previously sold for Tk 183 is now Tk 195.
Supplies from companies have dropped sharply in recent weeks, according to traders.
It is the same situation over in Barishal, according to Mahatab Akon, a grocery shop owner in the city.
Contacted, Md Hasan, general manager of public relations for Meghna Group of Industries that sells the ‘Fresh’ brand oil, said the supply remains stable and there is no cause for concern.
“We maintain sufficient reserves to ensure continuous market availability,” he told the reporter.
City Group, another major edible oil importer and processor, echoed the same.
“We are providing the same amount daily as usual, and reports on the supply are being submitted to the commerce ministry and various government agencies,” said Biswajit Saha, director for corporate and regulatory affairs at City Group.
However, the government should look into why this situation is occurring in the retail market. The issue lies in the lack of sufficient vehicles to transport supplies outside Dhaka, mainly due to diesel issues, he said.
Commerce Minister Khandakar Abdul Muktadir acknowledged that shortages may be occurring at the marginal or retail level in some areas.
The government will strengthen monitoring by the Directorate of National Consumers’ Rights Protection and encourage local administrations to be more active.
“Hopefully, the situation will improve within the next two to three days.”
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Source : The Daily Star
