The supply shortage of bottled soybean oil in the market has become acute again. As a result, the retail prices of loose soybean and palm oil have increased by Tk 2 to Tk 4 per litre.
Amid this instability in the oil market, the price of farm-raised chicken eggs has also risen again over the past week. However, the prices of broiler chickens and various types of fish remain high and stable at roughly the same levels as before.
These details were learned on Thursday (October 1) after visiting Mohammadpur Krishi Market, Palashi Bazar, and Kallyanpur New Market in the capital and speaking with buyers and sellers.
Retailers said companies are releasing smaller quantities of bottled soybean oil into the market. As a result, they are also receiving smaller quantities from dealers or suppliers. Dealers have told them that companies want to increase the price of oil and have therefore reduced supplies.
A visit to the markets found that retail shops do not have enough one-, two-, and five-litre bottles of soybean oil to meet demand. For example, at least six shops in Mohammadpur Town Hall Market had only four or five bottles of soybean oil each. Some shops had no one-litre bottles, while others had no two-litre bottles.
Sellers said the supply of bottled soybean oil has not stopped completely, but it is far below demand. Moreover, sellers are not putting all of the available supply on display. Many are keeping some bottles in storage out of sight.
Asked about the reason, Iman Ali, a grocery retailer at Mohammadpur Krishi Market, said, “I need around 10 cartons of soybean oil a day. I received four cartons from the dealer, but I have to provide oil when regular customers ask for it. So I keep some bottles aside separately.”
Usually, when there is a shortage of bottled soybean oil, demand for loose soybean oil increases, pushing up its price. According to data from the government agency Trading Corporation of Bangladesh (TCB), the price of loose soybean oil has risen by about 1 percent over the past week to Tk 190–195 per litre. The price of loose palm oil has increased by 0.88 percent to Tk 170–175 per litre. In other words, the prices of these two types of loose oil have risen by Tk 2 to Tk 4 per litre.
Companies Want to Raise Prices
A supply shortage of bottled soybean oil first emerged around February at the beginning of this year. Subsequently, in late April, the price of bottled soybean oil was increased by Tk 4 per litre to Tk 199. Around July, another supply shortage occurred. Later, on September 3, the price was increased by Tk 5 to Tk 204 per litre. Now, another supply shortage has emerged. This means that the market has experienced soybean oil supply shortages three times this year.
Edible-oil refining and manufacturing companies in Bangladesh want to raise the price of soybean oil yet again. In this regard, the Bangladesh Vegetable Oil Refiners and Vegetable Fat Manufacturers Association sent a letter to the commerce secretary on September 20. However, responding to a journalist’s question in Sylhet on Wednesday, Commerce Minister Khandaker Abdul Muktadir said that although traders have demanded an increase in edible-oil prices, the government will make a considered decision. He said edible-oil prices would not be increased before the matter is reviewed and assessed.
Broiler Chicken at Tk 200 per Kilogram
Over the past week, the price of eggs has increased by around Tk 10 per dozen. As a result, a dozen eggs now costs Tk 155–160. At neighborhood grocery shops, four eggs cost Tk 55. Low-income and poor families generally buy eggs one or two at a time. In that case, each egg costs Tk 15.
Meanwhile, the price of broiler chicken has remained around Tk 200 per kilogram for the past two months. Prices of various types of fish are also high. Rui weighing two to two and a half kilograms is selling for Tk 380–400 per kilogram, pabda for Tk 400–450, tilapia for Tk 250–260, and pangas for Tk 250–280.
With the prices of eggs, chicken, and fish remaining high, people with low and limited incomes are struggling. Ansar Hossain, who works as a security guard in the Shekertek area of the capital, said, “I don’t have much money. With what I earn, I can afford to buy broiler chicken and eggs. But the price of broiler chicken hasn’t come down in two or three months. And now eggs cost Tk 160 a dozen.”