Bangladesh : Soybean oil imports plunge
Bangladesh’s soybean oil imports dropped sharply due to pricing disputes causing losses for importers. Despite stable palm oil imports, supply constraints and rising global prices strained the market, raising concerns over availability, while the government maintains the situation remains under control.
Soybean oil imports fell sharply during January-April this year compared to the same period last year, according to commerce ministry data.
Importers said they scaled back shipments because domestic prices have not been adjusted in line with international market rates. They added that continuing to sell at a loss is unsustainable, despite repeated appeals to both the current and immediate past interim governments for a price hike.
The government is trying to keep prices under control and claims that the import situation is still stable and there is no need for interference now.
According to commerce ministry documents, palm oil imports remained almost unchanged from 4.59 lakh tonnes between January 1 and April 15 last year to 4.57 lakh tonnes in the same period this year.
Soybean oil imports, however, registered a steep fall from 4.48 lakh tonnes to 2.61 lakh tonnes in this period.
Bangladesh’s annual demand for edible oil stands at 24 lakh tonnes, around 90 percent of which is met through imports, according to data from the Bangladesh Trade and Tariff Commission.
Recently, market shortages have pushed cooking oil prices up in some areas, with availability shrinking.
Mostafa Kamal, chairman of Meghna Group of Industries, one of the country’s leading importers of edible oil, blamed unresolved pricing challenges for the decline.
He said the issue was discussed in government meetings where prices were set in October and November last year, but implementation was delayed and no effective resolution has yet been reached.
“The industry is operating under a loss, and no company is willing to incur sustained losses,” he claimed, warning of future supply concerns.
World Bank Commodities Price Data showed that soybean oil was sold in the international market at $1,154 per tonne in January this year. The price increased to $1,282 in February and further to $1,482 in March.
A senior official of a major importer, requesting anonymity, claimed that the sector is under severe strain, with companies unable to maintain normal stock levels due to continuous losses of up to Tk 20 per litre.
He claimed that a single shipment can result in losses of Tk 15–20 crore.
Companies are maintaining limited supply only to keep operations running, support dealers, and meet bank obligations, though dealers themselves face high monthly expenses with little profit, the official added.
Commerce Minister Khandakar Abdul Muktadir addressed the issue at a press conference after a meeting of the 11th taskforce review committee on price and supply of basic commodities on Tuesday.
“Certain products, because of their sheer volume, cannot be handled by all traders. Each import requires a large amount of capital, and that level of equity is only available to large-scale businesses. We are therefore maintaining constant communication with importers of essential commodities,” he said.
Regarding soybean oil, he said the information gathered by the government shows that bottled soybean oil, where the price is printed on the label, leaves no scope for price manipulation.
He acknowledged that the supply of bottled soybean oil is currently “somewhat limited”.
He also acknowledged that loose soybean oil is being sold at slightly higher than the government-fixed price, although the product is “available in sufficient quantity”.
“We are monitoring this situation closely and will take appropriate measures,” he said.
“We have reviewed the current price levels of essential goods, as well as the state of imports. So far, our assessment indicates that the import situation remains stable. In other words, no major issue has yet emerged that would warrant gross intervention,” the minister added.
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Source : The Daily Star
