Majhar Mannan :
The recent rise in the price of edible oil has created extreme frustration among low-income people. Ordinary and poor people of the country do not understand the international market, they are worried about how much they are getting the product. In the last two years, many people have fallen victim to financial crisis and extreme poverty. With this, the price of every daily commodity has increased. The recent unbearable price of soybean oil has put ordinary consumers at a disadvantage. In one leap, the price of soybean increased by tk. 40 per liter and has been fixed at tk. 198 per kg. A family of four members needs 6 to 7 liters of oil per month. In that case the family will have to spend about 1400 taka per month for oil. World oil prices have been volatile, with Indonesia’s palm oil embargo worsening the situation. However, an increase of 40 taka per liter in a hurry is not a normal thing at all. Life will be a stressful journey. The price of many prepared meals will go up. The government has repeatedly said that there is no shortage of oil in the country. But reality does not say that.
The impact of international market volatility has also been felt in the domestic market. At present, 95 per cent of edible oil is imported, and this massive import dependence is making the country’s market more volatile. However, there are attempts to take various initiatives from the government. The government has plans to increase the capacity of TCB. The country’s importers are in a precarious position due to instability in the international market. Soybean oil prices have risen by 200 dollar per ton following a ban on palm oil exports to Indonesia. Rumors are also responsible for the volatile world market. The market became more reckless due to rumors. The price of edible oil has been rising in the country’s market since the beginning of Corona. The increase in prices from time to time makes the consumers unhappy. With the world market, the country’s market is becoming increasingly volatile. In the meantime, Russia-Ukraine war triggers collapse in supplies of sunflower oil from regions that make international markets more critical.
In this case, there is only one way and that is to increase the production of domestic edible oil in line with the increase in per capita consumption of edible oil. We need to discover new oilseeds suitable for soil and climate and multiply cultivation. Import dependence must be reduced by increasing the production of edible oil in the country. Mustard was once the main edible oil in the country. Not just oil, but animal and fish food is made from nutritious khail. At present oil seeds have to be imported. It is necessary to reduce it and make arrangements for production and storage of oil seeds in the country. Mustard, groundnut, sesame, linseed, soybean, gargantil and kusum flowers are some of the oil crops in the country.
At present, only 4 per cent of the country’s arable land is used for oil cultivation. The country produces little soybean. In Bangladesh, a person consumes an average of 20-22 grams of oil per day. But the oil crop produced in the country is only 9-10 percent of the demand. So for the time being there is no alternative to oil crop production. Ensuring all other benefits including production and storage of improved oil seeds, use of modern technology, training and motivation of farmers, providing loans on easy terms, supply of all materials has become essential. The annual consumption of oil and fat food in Bangladesh is 3 million 30 thousand tons of which 90 percent is imported. Bangladesh has an internal market of 200 crore dollars for edible oil. By increasing the cultivation of mustard, it is possible to meet the shortage of 6 lakh tons of edible oil in the country and it is possible to save four and a half thousand crore taka in foreign exchange.
Bangladesh is the third largest importer of soybean oil in the world. But the good news is that edible oil production is on the rise in the country. Mustard production should be increased a lot. Apart from mustard, cultivation of other oil crops should be increased. Otherwise it will be difficult for us to survive in the competition. At the same time market surveillance needs to be massively increased.
Although the government fixes the price of edible oil in the country, many times traders and sellers do not want to accept it. An invisible syndicate wants to control the market and take advantage of them. The tendency to blame each other is also evident in the country. Producers, wholesalers and retailers blame each other. Some unscrupulous businessmen put undue pressure on the government.
(Majhar Mannan is Assistant Professor, B A F Shaheen College Kurmitola, Dhaka Cantonment).
