The bottled soybean oil price has been reduced by Tk 14 a litre at retail. The new price, Tk 185, is supposed to come into effect. However, consumers still have to purchase this kitchen ingredient at a higher rate. Companies and millers by disrupting supply chains allegedly make an artificial crisis and force consumers to buy due to a lack of enforcement and market monitoring.
Compared to the price drop in the international market, the 7 per cent reduction seems inadequate. Globally, unrefined soybean oil prices fell by 26 per cent in June. Each tonne of crude soybean oil prices dropped from $1,800 in April-June to $1,330 on Sunday. The millers also agreed to reduce the prices of palm oil by Tk 6 a litre to Tk 152. As per the new price, a five-liter bottle of soybean oil will sell for Tk 910 from the current Tk 980. Edible oil prices are likely to fall significantly next month when the shipments of low-priced unrefined oil begin to arrive.
Currently, a one-litre bottle of soybean oil sells for Tk 199, down from Tk 205 on June 27. The price hovered over $1,800 in April, May and June because of high shipping costs and fallout of the Russia-Ukraine war. In May, Indonesia imposed a ban on export of palm oil, but the Indonesian government lifted the ban towards the end of June. Bangladesh requires about 20 lakh tonnes of edible oil each year. Only around 2.03 lakh tonnes can be sourced from local production while the remaining demand is met through import.
As the world is entering another round of economic recession, the government should emphasise local production. Mustard oil, rice bran oil, sunflower oil, and coconut oil are the few vegetable oils required for preparing meals, so dependent on import-based soybean oil we should popularise other alternatives. Besides, the production of soybean oil should get due preference to turn as oil-importer to oil exporter nation.
