Bangladesh : No immediate hike in edible oil prices
Bangladesh has rejected a proposed hike in soybean oil prices to protect consumers amid global volatility. Despite stable official rates, market shortages and higher retail prices persist, with allegations of artificial scarcity. The government is reviewing supply conditions while exploring incentives for refiners without increasing consumer prices.
He made the remarks after a meeting on the country’s edible-oil supply held at the Secretariat in the capital.
Earlier on April 9, the Bangladesh Vegetable Oil Refiners and Vanaspati Manufacturers Association proposed a price hike in a letter to the ministry.
However, the commerce ministry, along with the Bangladesh Trade and Tariff Commission, reviewed the proposal and decided against any increase for the time being.
The minister said consumers are already under pressure due to the global situation and ongoing conflicts, and the government’s priority is to keep essential commodity prices stable.
Necessary steps will be taken to that end, he added.
He also noted that edible oil is a sensitive commodity and any price hike would directly affect consumers.
“That is why we are regularly reviewing supply and import situations. No decision has been taken to raise prices,” he said.
Representatives of major edible oil companies attended the meeting.
The meeting also discussed providing certain incentives to suppliers so they can maintain profitability without raising retail prices.
Meanwhile, distributors and grocers claimed that bottled soybean oil is becoming scarce in city markets, as refiners have significantly reduced supply.
Loose soybean oil is being sold at Tk 205-215 per litre in different markets, while bottled oil remains scarce, with some traders selling it at Tk 200-210 per litre against the official rate of Tk 195.
Consumers Association of Bangladesh Secretary Humayun Kabir Bhuiyan alleged that refiners are pressuring the government by creating artificial shortages.
He said current import policies have enabled a small number of firms to dominate the market — from import to retail — creating an oligopolistic structure.
He also called for easing import policies to allow more traders to bring in edible oil, which could help break the oligopoly.
Strict action should be taken against those found responsible for creating an artificial crisis, he added.
“And the government should make rational price adjustments if global edible oil prices increase in real terms,” he said.
However, refiners claimed that global soybean oil prices have been rising over the past six months and should be reflected in the domestic market.
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Source : The Financial Express
