Business Desk :
Edible oil prices in Bangladesh have been rising for a month. Palm and soybean oil prices have gone up by Tk 10-15 per litre due to a price spike in the international market.
Loose palm oil was being sold at Tk 90 per kg and soybean oil at Tk 100 per kg in the capital’s Karwan Bazar kitchen market on Tuesday. Bottled oil retailed at Tk 105 per litre.
The price of a drum of soybean oil increased to Tk 18,000 from Tk 17,400 on Monday, Jasim Uddin, a trader at Karwan Bazar, told that a drum contains 204 litres of soybean oil, reports bdnews24.com
The wholesale price of soybean oil is still around Tk 3,550 per maund, while the asking price at the mill gate is Tk 3,700. It is also taking 2-3 days to receive the oil supply order, said Abul Hashem, an edible oil wholesaler in Old Dhaka’s Moulvibazar.
Currently, the wholesale price of soybean oil is Tk 88.75 per kg, according to Hashem. However, the mill owners are demanding Tk 92.5 per kg. Transportation costs and profits will also be added to this price.
Traders believe the country’s market will return to its previous state only after the international market stabilises. The oil refining and marketing companies have promised the government not to increase the prices anymore for the time being. Loose soybean oil will be sold at Tk 90 per litre and palm oil at Tk 80 per litre at the mill gate, the companies said.
REASONS BEHIND THE INSTABILITY
Market participants believe soybean oil prices are rising due to declining stocks in major exporting countries. On the other hand, the prices of Indonesia and Malaysia palm oil are rising due to increasing soybean oil prices.
“The rising prices in the international market has had an effect on the local market. Due to conflicts with the US, China has moved away from the US market and is buying large quantities of soybean oil from the Latin American markets. They are even rumoured to have booked 50 percent of the international market,” said Mostafa Haider, the president of the Bangladesh Vegetable Oil Refiners and Vanaspati Manufacturers Association.
Edible oil prices in Bangladesh have been rising for a month. Palm and soybean oil prices have gone up by Tk 10-15 per litre due to a price spike in the international market.
Loose palm oil was being sold at Tk 90 per kg and soybean oil at Tk 100 per kg in the capital’s Karwan Bazar kitchen market on Tuesday. Bottled oil retailed at Tk 105 per litre.
The price of a drum of soybean oil increased to Tk 18,000 from Tk 17,400 on Monday, Jasim Uddin, a trader at Karwan Bazar, told that a drum contains 204 litres of soybean oil, reports bdnews24.com
The wholesale price of soybean oil is still around Tk 3,550 per maund, while the asking price at the mill gate is Tk 3,700. It is also taking 2-3 days to receive the oil supply order, said Abul Hashem, an edible oil wholesaler in Old Dhaka’s Moulvibazar.
Currently, the wholesale price of soybean oil is Tk 88.75 per kg, according to Hashem. However, the mill owners are demanding Tk 92.5 per kg. Transportation costs and profits will also be added to this price.
Traders believe the country’s market will return to its previous state only after the international market stabilises. The oil refining and marketing companies have promised the government not to increase the prices anymore for the time being. Loose soybean oil will be sold at Tk 90 per litre and palm oil at Tk 80 per litre at the mill gate, the companies said.
REASONS BEHIND THE INSTABILITY
Market participants believe soybean oil prices are rising due to declining stocks in major exporting countries. On the other hand, the prices of Indonesia and Malaysia palm oil are rising due to increasing soybean oil prices.
“The rising prices in the international market has had an effect on the local market. Due to conflicts with the US, China has moved away from the US market and is buying large quantities of soybean oil from the Latin American markets. They are even rumoured to have booked 50 percent of the international market,” said Mostafa Haider, the president of the Bangladesh Vegetable Oil Refiners and Vanaspati Manufacturers Association.
