Soybean oil rates tick up on Bangladesh market

Soybean oil, the most-consumed cooking oil, has witnessed a fresh price hike during the past week, a significant blow to already battered consumers amid coronavirus pandemic.

The prices of bottled soybean oil rose to Tk 144 a litre from Tk 140-141 collection by the refiners on May 3 last.

Bottled soybean oil of Rupchanda brand, something of Bangladesh Edible Oil Ltd. (BOEL), was advertising at Tk 144 a litre. Its two-litre jar costs Tk 286.

One litre bottle of Teer soybean essential oil, something of City Group, has now a price tag of Tk 144.

Although few grocers involve some bottles on the shelves with the older price of Tk 139-141 a litre, they were selling those bottles at Tk 143-144.

Refiners, on the other hand, said they would review the prices again soon in consultation with the government found in the wake of rates skyrocketing found in the global market.

Market specialists suggested lifting all types of taxes on crude edible essential oil imports for some period to be able to provide some alleviation for buyers facing pandemic-related hardship.

Director of City Group Biswajit Saha told the FE on Friday that they started supplying bottles with a price tag of Tk 143-144 (maximum retail selling price) after Eid.

"The Bangladesh Vegetable Oil Refiners and Vanaspati Suppliers Association (BVORVMA) has already sent a proposal to the Trade and Tariff Commission (BTTC), seeking to raise prices based on the growing import costs," he said.

He claimed that the development cost increased to above Tk 162 a good litre found in March-April when the global price tag of crude soybean oil crossed US$ 1480 a tonne.

"We will sit with the commerce ministry in a few days to go over our proposal with a check out to reviewing the costs," he added.

Another refiner, declining to be named, said they have proposed revising upward the cost of bottled soybean oil-Tk 156 a litre.

Riad Hossain, an employee of Bismillah Retailer at West Dhanmondi on the city, explained oil companies started supplying soybean bottles with a cost tag of Tk 144 a litre following Eid. And the development dates published on the bottle labels are April 27 and 28, 2021.

Before the Eid, that they had sold soybean oil at Tk 139-141 a litre, he said.

In line with the Trading Company of Bangladesh (TCB), soybean oil prices registered a rise of over 36 % previously five months.

Refiners revised the prices as many as six times within the last four months, said TCB.

Extra secretary at the commerce ministry Shafiqul Islam told the FE that the officials concerned will hold an interior meeting about Sunday to take stock of the rising edible oil prices.

Secretary of Buyers Association of Bangladesh (CAB) Md Humayun Kabir Bhuiyan said the federal government should exempt crude soybean essential oil import from a myriad of taxes for a certain period due to the global rates continue to surge.

As well, TCB also needs to increase supply of more oil to its open market sale programme so that consumers get some good relief amid pandemic-induced crisis, he said.

"Also, policies ought to be adopted to improve edible oil production in the united states," he said.

Bangladesh imports 2.2-2.6 million tonnes of edible oils a year, incorporating 0.7-0.8 million tonnes of soybean oil and 1.4-1.6 million tonnes of palm oil, to meet up a lot more than 95 cent of hometown demand.