The supply crisis of soybean oil in the market is gradually worsening. Where retail shops once displayed rows of bottled soybean oil, now only a handful of bottles can be seen. In many cases, there are allegations that oil is being supplied at the dealer level on the condition that other products are purchased.
At the same time, loose (unpackaged) oil is being sold at prices higher than the fixed rate, forcing consumers to pay extra.
Market insiders say that with Eid-ul-Adha approaching next month, the demand for edible oil in the country will increase further. Therefore, steps should be taken immediately to resolve the soybean oil supply problem.
Several traders, speaking anonymously, said that although international soybean oil prices have increased, they have repeatedly requested the government to adjust domestic prices accordingly. However, due to the lack of effective measures, traders have lost interest in importing.
According to sources from the Ministry of Commerce, citing a report on import conditions, soybean oil imports have significantly decreased from January to April 15 this year. During the same period last year, imports stood at 448,000 tons, whereas this year they have dropped to 261,000 tons—almost half within a year.
However, palm oil imports have remained nearly unchanged. From January 1 to April 15 last year, palm oil imports were 459,000 tons, compared to 457,000 tons during the same period this year. As a result, the shortage of soybean oil is not being offset by palm oil.
Data from the Bangladesh Trade and Tariff Commission shows that the country’s annual demand for edible oil is about 2.4 million tons, around 90% of which depends on imports. In this context, the reduction in imports is directly affecting the market.
Traders say that the lack of price adjustment in line with international markets has reduced interest in imports. They claim that although discussions with the government have been ongoing for a long time, no effective decision has been made. As a result, continuing business while incurring losses has become difficult.
Taslim Shahriar, Deputy General Manager of Meghna Group of Industries (MGI), one of the country’s top importers, told Ittefaq yesterday, “We do not want to comment on this. You may contact the Ministry of Commerce.” On the other hand, Md. Shafiul Athar Taslim, Director of T.K. Group, said, “Soybean oil prices are high in the international market. Just look at the prices in neighboring countries to understand the situation.”
Several senior officials from importing companies, speaking anonymously, said they have been urging the government for months to align edible oil prices with international markets, but no effective solution has yet been implemented, leading to reduced imports.
Meanwhile, soybean oil prices are also rising in the international market. According to the World Bank, the price per ton of soybean oil was $1,154 in January this year, which rose to $1,282 in February and reached $1,482 in March.
As a result, import costs have increased further. It is worth noting that the supply crisis of soybean oil has been ongoing in the domestic market for nearly two months. Sellers say that even before last Ramadan’s Eid, there was already a shortage in the market, which pushed up the prices of both soybean and palm oil. Now, with Eid-ul-Adha approaching, the crisis still persists.
According to market price data from the Trading Corporation of Bangladesh (TCB), bottled soybean oil is currently selling at 195–200 taka per liter, while loose soybean oil is priced at 182–190 taka per liter. Additionally, loose palm oil is selling at 161–168 taka per liter, and super palm oil at 165–172 taka per liter. However, there are allegations that in reality, prices are even higher in the market.
The Consumers Association of Bangladesh (CAB), a consumer rights organization, has stated that a group of dishonest traders has artificially created a supply shortage to increase soybean oil prices.
At a recent human chain in front of the National Press Club, CAB General Secretary Humayun Kabir Bhuiyan said that due to the lack of effective market monitoring, dishonest traders have created instability in the edible oil market. He demanded strict action against such syndicates.
Recently, after a meeting of the task force committee reviewing commodity prices and market conditions at the Secretariat, Commerce Minister Khandker Abdul Muqtadir said that global conditions, especially conflicts in the Middle East, have put pressure on energy and supply systems. He noted that although the supply of bottled oil is somewhat low, the supply of loose oil is sufficient.
The government is monitoring the issue of overpricing beyond fixed rates. He also stated that no artificial crisis or market manipulation will be tolerated, and no group or individual will be allowed to hold the market hostage.