Authorities Tuesday said edible oil price 'should fall' in the local market in the month of Ramadan, as international commodity market is cooling down precipitously, but the refiners see 'no decline' in the near future.
Chief of Rifles major general Shakil Ahmed, whose agency now monitors local and global commodity prices, said edible oil price has been falling in since July.
"If the downtrend continues, the prices of edible oil should fall in the local market during Ramadan," Shakil told reporters after his meeting with the country's leading refiners at the BDR headquarters in the capital.
He cited figures, saying the price-drop has been significant in the international market over the past three weeks and "it is time this global downtrend should have 'reflection' in the local market."
On Sunday, soybean cost US$ 1221 a tonne, or Tk 83.64 per kilogram, as it landed at the Chittagong port after the payment of shipment and terminal charges. It was $ 1463 a tonne, or Tk 100.22 each kg in July.
The palm oil price stood at $ 1070 a tonne, Tk 73.30 a kg on Sunday at the Chittagong port after the clearance of shipment and terminal cost. It was $ 1319 a tonne, Tk 90.35 at Chittagong port in July.
But the downtrend had little impact on the local market. On Tuesday prices of Soyabean in city's kitchen markets ranged between Tk 115 and Tk 120 a kg while the prices of palm ranged between Tk 95 and Tk 98 a kg.
MA Rouf Chowdhury, president of Bangladesh Edible Oil Refiners Association, said more time is needed before the impact of global price fall sees its impact in the local market
"We are still selling the edible oil that we bought much earlier. Ships carrying July's consignment has not reached the Chittagong port yet," he said, adding the price of edible oil would "neither fall, nor rise" in Ramadan.
"The price fall depends on the market forces -- demand and supply," he said.
Fazlur Rahman, chairman of City Group, the country's largest refiners, said because of old oil-stock, there are hardly any chances for any fall in prices in the upcoming month.
"All we can say that the prices would remain tolerable as there is an adequate stock of around 200,000 tonnes of edible oil in the country," he added.
Bangladesh consumes around 110,000 tonnes a month or 1.3 million tonnes of edible oil a year. But the consumption surges to 150,000 tonnes during Ramadan, when Muslims prefer spicy food cooked with oil.
BDR chief urged the business community to make minimum profit in Ramadan, saying the prices of essential items have been falling in the international market and the local consumers should enjoy its benefits.
BDR has planned to open at least 210 outlets in 32 districts during the Ramadan to sell essential commodities such as rice, edible oil, lentil, onion at fair prices. They opened 190 outlets in last Ramadan.
