Edible oil prices up as D/O business continues
Saturday, 30 October 2010
Our Correspondent
CHITTAGONG, Oct 29: D/O business in sugar and edible oil goes on unabated at Khatunganj and Chaktai wholesale market although the government is contemplating writing off the traditional business in a bid to check price hike of the essential commodities.
Delivery orders (D/O) worth Taka several thousand million are moving in a circuitous way from one hand to another in the country's major wholesale market in Chittagong, leading to unusual price spiral of edible oil, market sources said.
The prices of loose and packed edible oil of almost all brands have shot up by Tk. 5-8 per litre in the span of seven days in the local retail shops.
Last week one litre of loose soybean oil sold at Tk 92 -95 and bottled soybean per litre was available at Tk 98 -105 in the shops. The price of loose soybean oil was Tk 95-98 a litre while bottled soybean oil sold at Tk 105-110.
Khatunganj Trade and Industries Association president Mahbubul Alam has said the retail market trend is slightly upward although wholesale price of edible oil remained almost static.
About the D/O system he said the business is there and D/Os worth millions and millions of taka are handled everyday at Khatungonj in spite of the government's bid to rescind the same for an alternative to check the price of commodities.
"Employment of dealers by edible oil and sugar millers is a partial solution because there is a great number of private importers from whom the dealers will not purchase goods if they do not get their profit," he told the FE.
He, however, suggested fixing validity of 30-35 days and mentioning of the sale rate of goods in the delivery orders issued by the mill owners.
Meanwhile, Commerce Minister Faruk Khan in a meeting with the business community in Chittagong recently said the system of delivery order (D/O) must go for the interest of common people while the businessmen contradicted his view.
In a meeting with the traders and industrialists in Chittagong on October 27 the minister said the D/O business is acting behind price hike of essentials as a handful of traders try to make huge money out of that irrationally, causing immense suffering to the common men.
He said the government has constituted a committee with additional secretary of the ministry of commerce as its head to find out an alternative to the D/O business in consultation with the businessmen.
Turning to the edible oil and sugar millers present in the meeting he said, "We requested you in the meetings held last April to control the business when a handful of your slips called D/Os were roaming about from one hand to another, but you did not. So it is you who have spoilt the business, and now you are speaking for it."
He said the government is committed to finding out a solution to this problem in the shortest possible time with cooperation of the industrialists and business community of the country.
FBCCI president AK Azad, Americal Chamber president and SME Foundation chairman Aftabul Islam, BGMEA and BKMEA leaders and mill owners of consumer products also spoke at the view exchange meeting organised by Chittagong Chamber of Commerce and Industry (CMCCI) at its auditorium on October 27. CMCCI president and CDA chairman Abdus Salam chaired the meeting.
Sufi Mizanur Rahman, a major producer of consumer items, opposed the government move to rescind the D/O business without taking appropriate alternative measures.
"How will we make delivery of our products without the D/O traders as we don't have enough storage facilities?" he asked the commerce minister in the meeting.
"I would rather suggest that the government impose bindings on sale of sugar and edible oil D/Os by restricting the time-limit of sale up to maximum 30 days, to check price spiral," he said.
Simultaneously the government should take initiative to expand the storage capacity, he said adding the scheduled banks can also provide businesses with soft loans to construct warehouses for storing their products.
CHITTAGONG, Oct 29: D/O business in sugar and edible oil goes on unabated at Khatunganj and Chaktai wholesale market although the government is contemplating writing off the traditional business in a bid to check price hike of the essential commodities.
Delivery orders (D/O) worth Taka several thousand million are moving in a circuitous way from one hand to another in the country's major wholesale market in Chittagong, leading to unusual price spiral of edible oil, market sources said.
The prices of loose and packed edible oil of almost all brands have shot up by Tk. 5-8 per litre in the span of seven days in the local retail shops.
Last week one litre of loose soybean oil sold at Tk 92 -95 and bottled soybean per litre was available at Tk 98 -105 in the shops. The price of loose soybean oil was Tk 95-98 a litre while bottled soybean oil sold at Tk 105-110.
Khatunganj Trade and Industries Association president Mahbubul Alam has said the retail market trend is slightly upward although wholesale price of edible oil remained almost static.
About the D/O system he said the business is there and D/Os worth millions and millions of taka are handled everyday at Khatungonj in spite of the government's bid to rescind the same for an alternative to check the price of commodities.
"Employment of dealers by edible oil and sugar millers is a partial solution because there is a great number of private importers from whom the dealers will not purchase goods if they do not get their profit," he told the FE.
He, however, suggested fixing validity of 30-35 days and mentioning of the sale rate of goods in the delivery orders issued by the mill owners.
Meanwhile, Commerce Minister Faruk Khan in a meeting with the business community in Chittagong recently said the system of delivery order (D/O) must go for the interest of common people while the businessmen contradicted his view.
In a meeting with the traders and industrialists in Chittagong on October 27 the minister said the D/O business is acting behind price hike of essentials as a handful of traders try to make huge money out of that irrationally, causing immense suffering to the common men.
He said the government has constituted a committee with additional secretary of the ministry of commerce as its head to find out an alternative to the D/O business in consultation with the businessmen.
Turning to the edible oil and sugar millers present in the meeting he said, "We requested you in the meetings held last April to control the business when a handful of your slips called D/Os were roaming about from one hand to another, but you did not. So it is you who have spoilt the business, and now you are speaking for it."
He said the government is committed to finding out a solution to this problem in the shortest possible time with cooperation of the industrialists and business community of the country.
FBCCI president AK Azad, Americal Chamber president and SME Foundation chairman Aftabul Islam, BGMEA and BKMEA leaders and mill owners of consumer products also spoke at the view exchange meeting organised by Chittagong Chamber of Commerce and Industry (CMCCI) at its auditorium on October 27. CMCCI president and CDA chairman Abdus Salam chaired the meeting.
Sufi Mizanur Rahman, a major producer of consumer items, opposed the government move to rescind the D/O business without taking appropriate alternative measures.
"How will we make delivery of our products without the D/O traders as we don't have enough storage facilities?" he asked the commerce minister in the meeting.
"I would rather suggest that the government impose bindings on sale of sugar and edible oil D/Os by restricting the time-limit of sale up to maximum 30 days, to check price spiral," he said.
Simultaneously the government should take initiative to expand the storage capacity, he said adding the scheduled banks can also provide businesses with soft loans to construct warehouses for storing their products.