Soybean oil price up

Kitchen market in short supply

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Staff Reporter :
The price of edible oil both bottled and loose soybean has increased by Tk 2 to Tk 4 per litre in the kitchen markets after a move by the refiners to raise its mill gate price, market insider said.
Different brands of soybean oil were sold at Tk 97-Tk 100 from Tk 94 to Tk 98 per litre earlier. A five-litre jar were sold at Tk 470-Tk 490 depending on brands from Tk 450-Tk 470 earlier. Loose soybean were sold at Tk 87-Tk 88 a litre at retail level from Tk 83-Tk 84 earlier.
The Trading Corporation of Bangladesh (TCB) data showed that the price of palm and soybean oil marked 2.9 percent and 4.35 percent rise respectively last week.
Manjur Alam, a grocer of Karwan Bazar, said in last five days, company agents almost stopped supplying soybean oil to the groceries following possible hike in prices by the refiners, resulting in a shortage in the market.
He said, soybean oil of Rupchanda brand (product of Bangladesh Edible Oil Ltd) was selling at Tk 100, while Fresh (Meghna Group) and Teer (City Group) were selling at Tk 97-Tk 98 per one-litre jar.
The refiners at a meeting on September 29 last said the Bangladesh Tariff Commission (BTC) should recommend the hiking the prices of soybean oil at mill gate.
They also proposed increasing the mill gate prices of bottled soybean oil to Tk 92 from Tk 88 a litre earlier. If increased, its maximum retail price will stand at Tk 100 per litre from existing Tk 94-Tk 98.
Meghna Group Chairman Md Mostafa Kamal at the meeting with the Tariff Commission said L/C for crude soybean oil was settled at US$ 816 to $ 835 per tonne in August and September from $ 740-$ 750 a tonne earlier.
The production cost of a one-litre bottle is now Tk 95.74, according to the refiners.
However, refiners said, they would implement new price tag after getting confirmation from the commerce ministry.
BTC on Tuesday put forward its recommendation on prices of some essentials to the commerce ministry.
When contacted, Additional Secretary of Commerce Ministry (MoC) Munshi Shafiul Hoque said the ministry has not hinted the refiners about the price hike of edible oil yet.
 “After scrutinising the BTC recommendations, we will place our proposal to the private refiners within few days.”
According to the MoC, the demand for edible oil in the country is nearly 1.9 million tonnes annually of which the country produces 0.25 million tonnes.
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