Bottled soybean oil in supply crisis, loose oil prices rising

The information was learned by visiting Mohammadpur Krishi Market, Palashi Bazar and Kallyanpur New Market in the capital on Thursday (October 1) and talking to buyers and sellers.

Retailers said that companies are releasing less bottled soybean oil to the market than before. As a result, they are getting less oil from dealers than demand. Dealers said supply has been reduced precisely because of preparations to raise prices.

Visits to the market showed that in many shops, bottled soybean oil in 1, 2 and 5 litre bottles is not available as per demand. In some shops there are no 1-litre bottles, while elsewhere 2-litre bottles are unavailable. Due to limited supply, some sellers are also said to be storing oil without displaying it openly.

According to TCB data, in the past week, the price of loose soybean oil increased by about 1 percent to Tk 190 to 195 per litre. At the same time, the price of loose palm oil increased by about 0.88 percent to Tk 170 to 175.

Earlier this year, in February and July, there was also a crisis in the supply of bottled soybean oil. In late April, the price was increased by Tk 4 per litre to Tk 199, and on September 3, it was increased by another Tk 5 to Tk 204. This time too, discussions on raising prices are ongoing amid the supply crisis.

The organization of edible oil refining and manufacturing companies sent a letter to the commerce secretary on September 20 demanding an increase in oil prices. However, Commerce Minister Khandaker Abdul Muktadir said the government will decide after verifying the traders' demand; edible oil prices will not be increased without verification.