Edible oil prices break records in both local, int'l markets
Thursday, 8 November 2007
Refayet Ullah Mirdha
Prices of edible oil both in the local and international markets have reached their highs in 33 years following diversification of usage of the crop and higher freight rate.
Given the situation, the market operators apprehended that both consumption and import of edible oil would decline in the days ahead in Bangladesh.
Market operators said recently the major edible oil producing countries have started producing bio-diesel rather than edible oil for higher profits.
Moreover, the higher freight charge has also contributed to a rise in prices of edible oil in the international markets, the local importers said.
A trader at the city's Moulvi Bazar Wholesale Market said at the wholesale level, soybean oil was selling at Tk 3,110-Tk 3,115 per maund, Super Palm Oil at Tk 2,900-Tk 2,850 per maund, and Palm Oil at Tk 2,730-Tk 2,740 per maund.
But even 15 days ago the prices of soybean oil had remained at Tk 3,220-Tk 3,230 per maund, he said attributing the temporary price fall to over-trading.
One month ago, soybean oil had been selling at prices below Tk 3,000 per maund, market sources said.
However, at the retail level, the one-litre bottled edible oil of different brands was selling at Tk 96-Tk 100 compared with Tk 80-Tk 86 per litre of one month ago.
The Bangladesh Rifles (BDR) in their regular market update report quoted the price of the one-litre bottled soybean oil at Tk 90 per litre in the city markets.
Talking to the FE, the country chief of Malaysian Palm Oil Council (MPOC), Fakhrul Alam, said the edible oil prices have crossed all records in international markets in the last 33 years.
He also said in the international markets soybean oil was selling at US$1,050 per tonne and Palm Crude Oil at $995 per tonne Tuesday last.
If the present trend of edible oil prices in international markets continues, import of the item will decline as the consumption will also decline, he observed.
The annual consumption of edible oil in the country accounts for about 1.2 million tonnes and the import value of edible oil ranges between Tk 30.0 billion and Tk 35.0 billion per year.
"But the import price of edible oil this year may cross Tk 40.0 billion due to appreciation of greenback against the local currency and higher prices of the item in the international market," Fakhrul Alam mentioned.
The current supply and stock of edible oil in the country are satisfactory and there is no chance of any scarcity of the item.
"If the government withdraws 18 per cent value added tax (VAT) on import of the item, the price may decline by Tk 10-Tk 12 per litre in the local markets," he observed.
On the other hand, sources in the Bangladesh Rifles (BDR), assigned with the job of controlling price spiral of essential commodities, suggested subsidy on import of edible oil to keep the local market stable.
Talking to the FE, Dhaka Sector Commander of BDR Colonel Mojibul Hoque said the government should subsidise import of edible oil to keep the market stable, as the price spirals of the item have already set some new records.
He also said currently the BDR personnel have been running 41 outlets in the city selling edible oil as the major item among all other essential commodities.
"We have no separate plan to import edible oil, but if the government likes, we'll extend our helping hand in assisting the government in this connection," he said.
Prices of edible oil both in the local and international markets have reached their highs in 33 years following diversification of usage of the crop and higher freight rate.
Given the situation, the market operators apprehended that both consumption and import of edible oil would decline in the days ahead in Bangladesh.
Market operators said recently the major edible oil producing countries have started producing bio-diesel rather than edible oil for higher profits.
Moreover, the higher freight charge has also contributed to a rise in prices of edible oil in the international markets, the local importers said.
A trader at the city's Moulvi Bazar Wholesale Market said at the wholesale level, soybean oil was selling at Tk 3,110-Tk 3,115 per maund, Super Palm Oil at Tk 2,900-Tk 2,850 per maund, and Palm Oil at Tk 2,730-Tk 2,740 per maund.
But even 15 days ago the prices of soybean oil had remained at Tk 3,220-Tk 3,230 per maund, he said attributing the temporary price fall to over-trading.
One month ago, soybean oil had been selling at prices below Tk 3,000 per maund, market sources said.
However, at the retail level, the one-litre bottled edible oil of different brands was selling at Tk 96-Tk 100 compared with Tk 80-Tk 86 per litre of one month ago.
The Bangladesh Rifles (BDR) in their regular market update report quoted the price of the one-litre bottled soybean oil at Tk 90 per litre in the city markets.
Talking to the FE, the country chief of Malaysian Palm Oil Council (MPOC), Fakhrul Alam, said the edible oil prices have crossed all records in international markets in the last 33 years.
He also said in the international markets soybean oil was selling at US$1,050 per tonne and Palm Crude Oil at $995 per tonne Tuesday last.
If the present trend of edible oil prices in international markets continues, import of the item will decline as the consumption will also decline, he observed.
The annual consumption of edible oil in the country accounts for about 1.2 million tonnes and the import value of edible oil ranges between Tk 30.0 billion and Tk 35.0 billion per year.
"But the import price of edible oil this year may cross Tk 40.0 billion due to appreciation of greenback against the local currency and higher prices of the item in the international market," Fakhrul Alam mentioned.
The current supply and stock of edible oil in the country are satisfactory and there is no chance of any scarcity of the item.
"If the government withdraws 18 per cent value added tax (VAT) on import of the item, the price may decline by Tk 10-Tk 12 per litre in the local markets," he observed.
On the other hand, sources in the Bangladesh Rifles (BDR), assigned with the job of controlling price spiral of essential commodities, suggested subsidy on import of edible oil to keep the local market stable.
Talking to the FE, Dhaka Sector Commander of BDR Colonel Mojibul Hoque said the government should subsidise import of edible oil to keep the market stable, as the price spirals of the item have already set some new records.
He also said currently the BDR personnel have been running 41 outlets in the city selling edible oil as the major item among all other essential commodities.
"We have no separate plan to import edible oil, but if the government likes, we'll extend our helping hand in assisting the government in this connection," he said.