Short supply pushes edible oil prices up

FE Team | Published: August 17, 2007 00:00:00 | Updated: February 01, 2018 00:00:00

FE Report
The short supply caused by delay in unloading of edible oil at Chittagong Port pushed up the prices of the item abnormally in the local market, said market sources.
According to the sources, one litre can of edible oil was selling at Tk 90-Tk 95 at the retail level against its previous rate of Tk 74-Tk 76 per litre.
Talking to the FE, a trader at the city's Moulavibazar said at the wholesale level soybean oil was selling at Tk 2,760 per maund, super palm Tk 2,700 per maund and palm Tk 2,660 per maund Thursday.
Last week at the wholesale level soybean oil was selling at Tk 2,720-Tk 2740 per maund, super palm Tk 2700 per maund and palm oil Tk 2650 per maund.
Country Manager of the Malaysian Palm Oil Council (MPOC) Fakhrul Alam told the FE that the stock of edible oil in the local market was still at a satisfactory level.
But transportation of the item from Chittagong to Dhaka was badly hampered due to a mother vessel-related problem, Fakhrul Alam said. However, the supply of edible oil in Chittagong was not hampered.
Following volatility of the oil prices in the local markets, Bangladesh Rifles (BDR) called the refiners and the wholesalers to sit in a meeting to know the exact causes of the sudden price rise.
A source who attended the meeting at the BDR Headquarters told the FE that a short supply of edible oil was triggered by the delay caused by the ambiguity of the clarification of customs duty on import of the item.
The importers claimed that Finance Adviser AB Mirza Azizul Islam announced complete withdrawal of the customs duty on import of the edible oil.
But the customs officials at the port still charged more than 18 per cent duty on import of edible oil in the name of Value Added Tax (VAT) and Development Surcharge (DSC).
As a result, the importers did not take delivery of their goods over the last few months, he said adding that the prices of edible oil have gone up in the local markets due to such a vacuum in import.
"The BDR has assured the edible oil traders that they will discuss the matter with the higher authorities of the government," a meeting source quoted.