The Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) has demanded the government withdrawal of VAT on imported edible oil for the next three months to bring normalcy in the volatile market. It also suggested a bonded warehouse facility on the import of the widely consumed cooking oil, albeit for domestic consumption, to prevent unscrupulous businesspeople from manipulating prices, says the apex trade body.
According to media reports on Tuesday, a section of dishonest businesspeople have been selling edible oil at prices much higher than the government-fixed rate ahead of Ramzan. Some have turned so desperate that they are collecting bottled edible oil to sell it in the loose form, which, in the absence of price labels, are now fetching higher prices amidst an artificial crisis. The prices of edible oil rose for the past ten days as soybean oil hit Tk 175-185 a litre and palm oil Tk 165-170. The traders are not obliging the government-capped price at Tk 143 a litre of bottled soybean and at Tk 133 a litre of bottled palm oil.
Meanwhile, the price of mustard oil has also gone up in the kitchen markets after the soybean oil market became volatile owing to short supply. Retailers say the price of mustard oil has increased as demand has risen after consumers rushed to the item following the artificial crisis in the soybean oil. A litre of mustard oil of a famed brand was priced at Tk 250 a month ago. Now, it is selling at Tk 280-290.
However, the business people, attending the discussion, urged the government to immediately adjust VAT on imported edible oil following a similar move taken in neighbouring India. It has adjusted VAT and duty on edible oil three times in recent months. Bangladesh should also go for such adjustment to bring equilibrium in the market. Corporate groups participating in the meeting claimed oil prices rose by 61 per cent globally in the last one year when it has increased by 21 per cent in Bangladesh. They also pointed out that the government earns Tk 25-27 in revenue from per-litre soybean oil.
People are already depressed with the skyrocketing of essential commodities. We want constant monitoring, rather than making a big noise every time when prices increase. The government needs to ensure a steady supply in the market so that prices do not rise. The syndicate must also be brought to book to bring down prices of essentials and sufferings of the middle class.
