The price of edible oil has increased abnormally due to the creation of an artificial crisis in the wholesale markets of the country, including Khatunganj in Chittagong. The government reduced the price of open palm oil by Tk 19 per liter to Tk 150, but it has not been implemented in the retail market. Currently, buyers are having to pay Tk 180 per liter. Wholesale traders have complained that trading houses are deliberately creating a crisis in the market by reducing supply. In Khatunganj, the price of palm oil per maund has increased by about Tk 300 in a month. The price of soybeans has also increased to more than Tk 6,500 per maund. The price of palm oil in the international market has increased slightly, but the price of soybeans has increased significantly. Business leaders have blamed the reduction in supply for this, and the Ministry of Commerce has said that action will be taken in consultation with the Tariff Commission if necessary.
Price cut not effective even after government announcement
The government recently reduced the price of palm oil by Tk 19 per liter to Tk 150 in the international market to reduce prices. But after the announcement, that price did not take effect in the retail market. On the contrary, buyers are currently paying Tk 180 per liter, which is Tk 30 more than the price set by the government.
Unusual increase in the wholesale market
In Khatunganj, Chittagong, the country’s largest wholesale consumer goods market the price of palm oil per maund has increased by about Tk 300 in a month. Currently, palm oil is being sold at Tk 5,980 to Tk 6,000 per maund in the wholesale market. Just a week ago, this price was Tk 5,840.
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Impact on the soybean market
The increase in the price of palm oil has also had an impact on the soybean market. In Khatunganj, the price of soybeans has increased by Tk 100 per maund to Tk 6,500 in a week.
Businessmen’s complaints
When asked, Golam Maula, president of the Bangladesh Wholesale Edible Oil Traders Association, said,
‘দীর্ঘদিন ধরে দেশে ভোজ্যতেলের দাম বাড়তি। পাম অয়েলের আন্তর্জাতিক দাম কমে যাওয়ায়—দেশের বাজারেও সমন্বয় করা হয়েছে। কিন্তু দাম কমানোর পর মিল গেটে সরবরাহ কমিয়ে দেয়ার পাশাপাশি ট্রেডিং প্রতিষ্ঠানগুলো দাম বাড়িয়ে বিক্রি করছে।’
Translation: “For a long time, the price of edible oil has been high in the country. As the international price of palm oil has decreased, the country’s market has also been adjusted. But after the price reduction, in addition to reducing supply at the mill gate, trading companies are selling at increased prices.”
In this regard, additional Secretary of the Ministry of Commerce Md. Abdur Razzak told TBS,
‘বাজারের সার্বিক বিবেচনায় সরকার তেলের দাম নির্ধারণ করেছে। যদি এর ব্যত্যয় ঘটে ট্যারিফ কমিশনের সাথে আলোচনা করে ব্যবস্থা নেওয়া হবে।’
Translation: “The government has fixed the price of oil considering the overall market. If there is a deviation from this, action will be taken after discussing with the Tariff Commission.”
International Market Situation
The price of crude palm oil in the world market stood at $975 per ton in July. The price was $935 in June, and $908 in May. On the other hand, the booking price of soybean was $1,163 per ton in May, $1,178 in June, and rose to $1,307 in July. That is, the price of soybean increased by $129 between June and July, while the price of palm oil increased by only $40.
Source: TBS
