Bottled soybean oil has virtually disappeared from the market, especially the one- and two-liter bottles of various brands. Consumers are struggling to find these in stores, and even when available, they are being sold at inflated prices. Investigations on Friday in Dhaka’s Kawran Bazar, Mohakhali, Shantinagar, and Turag New Market confirmed this shortage.
Aminul Islam, a buyer at Kawran Bazar, shared his frustration about being unable to purchase bottled soybean oil after visiting multiple shops. Ultimately, he had to settle for loose soybean oil.
Retailers and wholesalers across the capital report that edible oil refineries have drastically reduced their supply of bottled soybean oil for over a week. Some refineries are providing a limited quantity, insufficient to meet demand. Anonymous sources in the trade allege that companies are creating an artificial shortage to raise prices ahead of Ramadan.
Tariff Reduction Fails to Lower Prices
Despite government efforts to control edible oil prices by reducing import duties, no positive impact is visible in the market. Importers attribute the issue to rising global prices, demanding price adjustments locally.
Currently, loose soybean oil is retailing for BDT 165–168 per liter, palm oil for BDT 157–159 per liter, and super palm oil for BDT 162–163 per liter, according to Trading Corporation of Bangladesh (TCB) data. However, actual market prices often exceed these rates. Bottled soybean oil, where available, is sold well above the government-fixed prices of BDT 167–170 for one liter, BDT 330–340 for two liters, and BDT 815–818 for five liters.
Import Decline Raises Concerns
Despite the duty reduction, edible oil imports have fallen. The National Board of Revenue (NBR) data shows that crude soybean and palm oil imports in October and November 2024 amounted to 368,000 tons, a 20% drop compared to 460,000 tons during the same period last year.
According to the World Bank, the global price of crude soybean oil is now USD 1,045 per ton, up USD 50 from last month. Similarly, palm oil has risen by USD 91 to USD 1,168 per ton.
Government Action
The Commerce Ministry has engaged with traders to address why local prices remain unaffected by reduced duties. Following these discussions, the Bangladesh Trade and Tariff Commission (BTTC) has formed a committee to examine factors such as demand, stock, and international prices.
Authorities stress that immediate action is required to open letters of credit (LCs) for importing sufficient edible oil to meet Ramadan demand in March. Without intervention, further instability in the market is anticipated.
