Suppliers agree to sell edible oil at lower rates

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FE Report
Edible oil suppliers and importers have agreed to sell unpacked (loose) oil at lower rates within two days and fix the prices of bottled oil within a week.
The suppliers informed the Commerce Minister Faruk Khan of their decision in a meeting with him at his secretariat office on Monday.
The business leaders also agreed to sit with the committee headed by Ali Reza Mortaza, additional secretary of Ministry of Commerce (MoC) to fix the price of bottled edible oil on December 05.
The minister called the meeting to find out the reasons behind soaring soybean oil prices.
Depending on the brand, the retail price of five litres of packed soybean oil is Tk 514-560 against its previous price of Tk 464-494. The price of loose soybean oil has crossed Tk 100 a kilogram.
According to retail price chart released by Trading Corporation of Bangladesh (TCB), the price of loose soybean oil rose by 10 per cent to Tk 98-102 a kilogram, compared to its price a month ago.
According to the traders, consumption of loose oil is 85 per cent while oil is 15 per cent.
Since the beginning of November, the price of loose soybean started rising ahead of Eid-ul Azha, when consumption of edible oil usually rises. The price of packed soybean oil, however, remained stable prior to the festival.
After Eid, edible oil refiners hiked the prices of soybean oil, which is mostly import dependent.
Refiners justified the hike saying they adjusted the prices in line with the international market price. Some refiners claimed that they even incurred losses before Eid while complying with a government call not to increase prices.
Globally, the price of soybean oil and palm oil soared since the middle of this year amid fears of a fall in output in major growing areas, such as the USA along with strong demand in China and higher production of biofuel.
Earlier the minister cautioned the businessmen saying "None can leave the room without fixing the essential prices and showing genuine reason for the price hike."
He asked Bangladesh Edible Oil Ltd (BEOL) to shut down its business saying without any rational reason the company cannot raise the price by Tk 13 per litre just in a day.
None can increase the price before informing the government and the related association, the minister said, "If you inform us early about the probability of the price hike, the government has its own mechanism and we can apply it," he added
Businessmen could keep the price under control because for few days the international market price of the item decreased, Mr Khan said.
Refiners said they responded to the government's call during the Ramadan when the prices were stable in the local market though the price was high even in the neighbouring country India.
Shoeb Md Asaduzzaman, head of sales and Marketing of BEOL which markets Rupchanda brand edible oil, said his company sells 100 per cent brand oil and their cost of production is high due to its packaging and advertising cost.
The minister also asked the edible oil refiners to formulate a costing policy and print the price on the bottle.
Gholam Hossain, secretary of MoC and representatives from Rubiya, Nurjahan, Fresh, Pushti, City and Pran Dada, among others, were present in the meeting.