BTTC suggests cut in edible oil prices

The Bangladesh Trade and Tariff Commission (BTTC) has suggested reduction of palm oil and soyabean oil by Tk 19 and Tk 1.0 per liter respectively.

The state-owned BTTC has also recommended re-fixation of the cooking oil prices through discussions with the local edible oil refiners as the prices of soybean and palm oils are currently stable in the global market.

However, the local refiners are not in favour of lowering the prices of the edible as its prices, according to them, have increased in the world market.

The prices of soybean and palm oils were fixed on April 15 by the government and leaders of local edible oil refiners associations.

According to the BTTC, prices of soybean increased by only 0.7 per cent while the price of palm oil decreased by 3.0 per cent in the international market during the period between April 15 and July 15, 2025.

The FoB prices of non-refined soybean and palm oils were $1003 and $1052 per tonne respectively as of 15 April last.

In the last three months, the FOB prices of soybean and RBD palm oil stood at $1079 and $1017 per tonne respectively, the BTTC mentioned.

In 2024, the government waived VAT (value added tax) at the production stage of soybean and palm oils while the rate of VAT on import of refined and crude soybean and palm oils was also reduced to 10 per cent from 15 per cent.

The facilities remained effective until March 31, 2025.

According to local edible oil producers, the price of soybean oil increased in the last three months while that of palm oil has decreased slightly.

So, there is no valid reason for the reduction of the edible oil prices as the industry has been facing some hurdles, especially in the area of power/ energy.

The government on April 15 last raised maximum retail price (MRP) of soybean oil by Tk 14 a litre to Tk 189. It was Tk 175 previously.

The retail price of loose soybean and palm oils was raised by Tk 12 to Tk169 per litre from Tk 157.

The price of a five-litre 0bottled edible oil was fixed at Tk 922 from its previous rate of Tk 852.

The country's annual demand for edible oils is estimated at 2.5-3.0 million tonnes, more than 95 per cent of which are imported.

In the FY24, the country imported around 2.3 million tonnes of non-refined edible oils, according to a commerce ministry source.

Meanwhile, the government has also planned to fix the minimum export prices of rice bran oil and is considering reviewing the existing 25 percent Regularity Duty (RD) on the item.

To this effect, the National Board of Revenue (NBR) is expected to sit with the stakeholders including the local Rice Bran Oil Mills Association and Bangladesh Vegetable Oil Refiners' and Vanaspati Manufacturers' Association tomorrow (July 23).

In the last February, the government imposed a 25 per cent RD on export of rice bran oil to help increase its supply at the local market, thus discouraging its export.

At present, there are 17 rice-bran oil mills in the country with having total processing capacity of over 1.63 million tonnes annually, according to Bangladesh Rice Bran Oil Mills Association (BRBOMA).

The country produces 0.343 million tonnes of crude rice bran oil annually and the volume can be raised to 0.514 million tonnes, sources said.

rezaqmumu@gmail.com