Kazi Zahidul Hasan :
Prices of edible oil have increased by 53 per cent across the country in last two years, derailing the household budget of commoners.
During this period, prices of the commodity was adjusted upwards several times due to increase in its price on the global market.
Despite the fact, domestic edible oil market remains highly volatility due mainly to ‘foul play’ by a syndicate of unscrupulous traders, said consumers rights group.
On January 6, 2020, branded cooking oil was sold for Tk 110 per litre, while it was Tk 130 per litre on January 10, 2021 whereas on February 6, 2022 its price was standing at Tk 168 per litre.
On the other hand, import cost of per metric ton soybean oil was US$718 on January 6, 2020, was US$990 on January 10, 2021 and US$1440 on February 6, 2022.
The import cost of soybean oil has increased by 100.56 per cent from January 2020 to February 2022.
Yesterday, soybean oil futures settlement price in the international market was US$1693.15 per metric ton, while crudepalm oil settlement price was US$1485.25 per metric ton, according to index mundi.
Since Bangladesh is a large importer of edible oil, the international factors affect domestic prices. Moreover, the taka depreciation has made imports costlier. The situation is likely to remain the same for months to come, according to importers.
“Edible oil prices in Bangladesh are ruling at all-time highs, driven by high volatility in global prices.The government should reduce import duty on edible oil to help ease prices,” said Shafiul Atahar Taslim, director (finance and operations) of TK Group.
He added, “We have already forwarded a proposal in this regard to the National Board of Revenue (NBR). If the NBR cuts import duty, cooking oil price would come down to Tk 20 per litre.”
Being one of the most essential grocery items in every house, the consumption of edible oil is substantially high in Bangladesh.
Industry insiders say about 95 per cent of edible oil is imported from other countries. Among edible oil, palm oil is imported in huge quantities (1.4 million -1.6 million tonnes) as it is widely used by low-income groups, along with hotels and other eateries.
The country also imports 0.7 million to 0.8 million tonnes of soybean oil annually.
In 2019, Bangladesh imported 2.14 million tonnes of edible oils, in 2020 it imported 1.97 million tonnes of edible oil and the edible oil import stood at 2.10 million tonnes in 2021, according to the Chattogram Sea Port.
Compounding the woes of consumers, bottlededible oil disappeared from the shelves of retail shops in the capital after the government rejected the millers bid to raise its prices afresh.
Some people are being forced to buy the commodity at Tk 180 to Tk 200 per liter if retailers agreed to sell their existing stocks.
Insiders said, oil refiners tightened supply in an ‘ill intention’ to manipulate the cooking oil price and create an artificial crisis of the commodityin the market.
Recently, the country’s oil refiners had proposed increasing soybeanoil price to Tk 180 per litre from Tk 168.
“Some millers are creating an ‘artificial crisis’ through short-supply and thus makes the country’s edible oil market highly unstable. The syndicate hold the consumers hostage as there is no proper market monitoring,” said Ghulam Rahman, President of the Consumers Association of Bangladesh (CAB).
He added, “The government should take stern action against unscrupulous traders and ‘hoarders’ of edible oil to maintain stability in the market and ease pressure of the consumers”.
Meanwhile, a government agencies yesterday launched a crackdown against hoarders of edible oil to end its shortage in and around the capital city.
A team of the Ministry of Commerce and the Directorate of National Consumer Rights Protection (DNCRP) jointly conducted raid on godown of Abul Khair Traders at Jatrabari in the capital and seized60 barrels of edible oil.
The team found the dealer (Abul Khair Traders) involved in manipulating the cooking oil price by selling it Tk 173 per litre although the government fixed rate was Tk 143.
Subsequently, the team fined the owner Tk two lakh.
Riyad, one employee of Abul Khair Traders, said, “We have procured the edible oil at Tk 171.80 per litre, and we were retailing it by increasing Tk 1 to Tk 2 per litre.”
He also said that they used to purchase the commodity from three-four Moulvi Bazar traders, but they did not give us the buying receipts.
The law allows the government to raid any place where more than two tonnes of sugar has been stored and the owner has not got it registered with the district administration.
