In the wake of the export ban announcement by Indonesia, the world’s biggest supplier of vegetable oil, wholesalers and millers here in the country cut supplies in anticipation of increased prices of the essential cooking ingredient. This Southeast Asian nation slapped restrictions on the shipment from its country by announcing plans to ban exports of the most widely used vegetable oil on Friday. Reportedly, Indonesia accounts for more than half of the global palm oil supply.
Bangladesh has become more volatile, the wholesale prices of palm oil rose by Tk 150 per maund overnight to Tk 6,250 at Chattogram’s Khatunganj, one of the largest wholesale markets, a day after the announcement. The halting of shipments of the cooking oil and its raw material, widely used in products ranging from cakes to cosmetics, could raise costs for packaged food producers globally. Meanwhile, at Khatunganj, soybean oil was sold at Tk 7,200 per maund in the wholesale market. According to data compiled by the TCB, prices of loose palm oil stood at Tk 145-Tk 148 per litre at the retail market on Saturday, up from Tk 142-Tk 145 a week ago.
It was alleged that some unscrupulous dealers and brokers are making an extra profit by reducing the supply against demand. Bangladesh buys palm oil from Indonesia and Malaysia. The country imported 21 lakh tonnes of palm and soybean oil in 2021. During first three months of 2022, palm oil and soybean oil imports were 10.22 lakh tones, says the general secretary of the Bangladesh Edible oil Wholesalers Association. Further detailing the situation, he said a maund of soybean oil was selling at Tk 6,600-Tk 6,700 at Moulvibazar, a wholesale hub, up from Tk 6,500-Tk 6,600 a couple of days ago. Palm oil prices also edged up at the wholesale level, he added.
Government functionaries, in the relevant market mechanism, shall have to take adequate steps to keep the prices within control in the interest of the general consumers, who are already facing an unbearable crisis in view of rising prices of other essential commodities.
