Price hike of soybean oil affecting households

THE price of soybean oil has increased by Tk 2 to Tk 4 per litre in the kitchen markets after a move by the refiners to raise their mill gate price. The enhanced price has affected both lose and bottle soybean oil forcing consumers to pay more. Millers are blaming a rise in soybeans and palm oil prices in international market while unilaterally raising the price without approval of such move from the government. It is illegal and also unacceptable, they can’t raise price at their will. In our opinion the commerce ministry must take action against the millers. They can’t hold the market hostage.

The New Nation reported on Wednesday that different brands of soybean oil sold at Tk 97 – Tk100 compared to Tk 94 to Tk 98 per litre few days earlier. Bigger containers sold at proportionately higher price. It appears that traders are routinely pushing the prices of kitchen market items round the year. They started with onions this year and then raised the prices of sugar and salt. Lentils come next and rice prices then soared by early this month. The government sources said they have no control over big rice millers who hold their stock and vary prices. The fact is that many ruling party MPs are also owners of big rice mills and they are free to manipulate the market price blaming supply shortage.

So also many edible oil millers and distributors are politically powerful people beyond the reach of law. In fact holding stocks and manipulating prices are the easiest business in the country using political shelter.

 Market sources said prices of palm and soybean oil marked slight upward rise last week in global market. But millers were persistently bringing pressure on Bangladesh Tariff Commission (BTC) to recommend a hike in their marketing price at mill gate. The BTC is yet to give a decision, which must go to the Ministry of Commerce for approval. So the millers’ decision to raise prices has no credible basis to collect higher price. The demand for edible oil is 1.9 million tonnes annually, of which Bangladesh produces only 0.25 million tonnes. So dependent on imported edible oil and monopoly of millers are making consumers hostage to market players.
 
Yet another point is that millers and retailers are cheating consumers routinely selling soybeans mixed with palm oil. But the manipulators are so powerful that the vigilance of Bangladesh Standard and Testing Institution (BSTI) and law enforcers remained quite ineffective to their power. We don’t know how the helpless consumers can be saved unless the government comes forward to protect their interest. It is useless in our situation to demand punishment to those cheating the buyers.