Govt warns of action as traders across Bangladesh hike edible oil price
Bangladesh businesses raised soya bean oil prices without commerce ministry approval, triggering warnings of action. Traders claim they sought permission earlier but received no response. The ministry says the hike is unjustified and will review it. Consumer groups note such increases violate proposed rules and undermine consumer rights in an import-dependent market.
Commerce ministry adviser Sk Bashir Uddin said on Wednesday that businesses had raised the price of edible oil on the market without obtaining ministry approval and that the ministry would strong take action.
On Wednesday, businesses all over the country raised the price of bottled soya bean oil by Tk 9 per litre to Tk 198, up from Tk 189 on Tuesday.
During visits to several markets in the city, five-litre bottles of soya bean oil were found selling at Tk 965, up from Tk 922 just days ago.
Sk Bashir Uddin told reporters at the secretariat that traders raised prices without notifying the government.
‘They did not discuss the matter with the ministry,’ he added.
Meanwhile, businesses said they raised prices in accordance with due procedures, including seeking ministry approval via a letter on November 10.
‘Despite waiting for a period of time, the ministry didn’t respond to the letter, though it is scheduled to respond within 15 days,’ said Md Shaiful Ather Taslim, a director of TK Group.
He said that if the government deemed their proposal to hike prices illogical, they should have responded.
Earlier on October 13, the Bangladesh Vegetables Oil Refiners and Vanaspati Manufacturers Association attempted to hike prices of edible oil at different levels at a range of Tk 5-6 per litre through a press release, saying it was an alignment with the international market trends.
However, the commerce ministry denied approval for the price hike, saying it had not made a final decision on oil prices and would leave the price unchanged.
On Wednesday, the commerce adviser said that just a few days ago, through a tender, they offered soya bean oil at Tk 20 below the prevailing market rate per litre and the government purchased 50 lakh litres of soya bean oil.
‘I don’t know on what grounds they have now increased the price,’ he said.
The adviser said that the ministry would sit with the traders soon and if they failed to justify the hike, the new prices would not be approved.
When asked how traders raised prices without government clearance, he said that they tried to increase prices in October as well, but the government did not approve it and the market did not follow the hike either.
Regarding commodity prices ahead of Ramadan, the adviser said that prices would remain stable, noting that measures had already been taken and that prices of chickpeas, sugar and lentils have recently declined.
According to the Bangladesh Vegetable Oil Refiners and Vanaspati Manufacturers Association, companies sent a letter to the ministry on November 10 seeking approval to raise soya bean oil prices.
On November 24, they again recommended a price adjustment, but the ministry did not respond.
‘We waited for more than 20 days after sending the letter, but the government didn’t respond and we thought the government took it as logical,’ said Ather Taslim.
The oil refiners said that the hike came amid rising international market prices.
On Wednesday afternoon, a meeting was held at the commerce ministry regarding the draft of the proposed Essential Commodities Act, with Consumers Association of Bangladesh president AHM Shafiquzzaman in attendance.
Regarding the increase in edible oil prices, he told reporters that the commerce ministry would set prices for certain essential items under the law.
‘If the association of oil refiners adjusts the price without consulting the ministry, it would be a violation of the law,’ he added.
He also said that raising prices without the ministry’s approval directly undermined consumer rights and they were waiting to see what measures the ministry would take.
‘Under the law, the government could even shut the operations of the refinery, if necessary. There are laws and acts on competition and consumers’ rights, if anyone hoards to manipulate prices, the government could take legal actions through the provisions and we want to see those,’ he added.
He also said that market monitoring had noticeably weakened in recent times, which must be strengthened to safeguard consumers’ interests.
Meanwhile, despite attempts, Farooq Ahmed, director general of the Directorate of National Consumers’ Right Protection, could not be reached regarding the directorate’s drives.
According to the US Department of Agriculture, Bangladesh’s consumption of soya bean and palm oil was 28.6 lakh tonnes in the marketing year 2024-25, where soya bean oil accounted for over 11 million tonnes.
Bangladesh is largely dependent on imports for edible oil.
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Source : Bangi News
