Govt, traders meet today to tame sky-high price of soybean
Sunday, 8 January 2012
Talha Bin Habib
As part of its continued efforts to tame the prices of soybean oil, the government sits with the traders today (Sunday) again at the Tariff Commission office in the capital, officials said.
The prices of soybean oil in the domestic markets are yet to come down to a tolerable level though the price is falling in the international markets.
Soybean refiners hinted that if the depreciation of Taka against the US dollar continues then it would be difficult to reduce the prices of soybean and palm oil.
They alleged that reluctance to open letter of credit by some local banks also resulted in hampering the smooth import of crude soybean.
They also said that, after arrival of crude soybean in the country from Brazil and Argentina, they had to pay import bills to the local banks on the present exchange rate of dollar against taka though the rate of greenback at the time of opening letter of credit (LC) was less than the present rate which forced them to increase the price of soybean oil.
They requested the government to take initiatives so that the Bangladesh Bank (BB) could change the present 'deferred payment' system and introduce 'normal payment' arrangement for paying import bills of crude soybean.
To contain the high prices of soybean oil, the government and the traders have been holding regular meetings for refixation of soybean prices.
Two meetings held on January 5, 2012 and December 29, 2011 at the ministry of commerce and at the Tariff Commission office respectively appeared abortive to readjust the prices of soybean and palm oil.
The government has earlier abolished age- old delivery order (DO) system by introducing distributorship to check soybean price hike.
But even after the inception of the distributorship system six months back, the prices of soybean are yet to come down to a tolerable level in the local market.
The government at the latest meeting with the soybean and palm oil refiners had issued a stern warning that any malpractice in the functioning of distributorship system by the unscrupulous traders for their petty business interest would be dealt with severely.
"We will take action against the businessmen who are involved in the manipulation of distributorship system under section 40 of the 2009-10 Import Policy," a high official of the ministry concerned told the FE.
In the retail markets Saturday per litre soybean oil was sold between Tk 126 and Tk 130, while another variety of soybean known as 'super' was sold at Tk 110 to Tk 105 per litre and palm oil at Tk 100 litre.
Different brands of five- litre bottled soybean oil such as Rupchanda was sold at Tk 630 while Teer, Fresh and Pushti brands were sold at Tk 615.
Two- litre bottled Rupchanda brand was sold at Tk 252 and Teer brand at Tk 248. One litre bottled Rupchanda was sold at Tk 127 while Pusti and Teer brands were sold at Tk 125.
As part of its continued efforts to tame the prices of soybean oil, the government sits with the traders today (Sunday) again at the Tariff Commission office in the capital, officials said.
The prices of soybean oil in the domestic markets are yet to come down to a tolerable level though the price is falling in the international markets.
Soybean refiners hinted that if the depreciation of Taka against the US dollar continues then it would be difficult to reduce the prices of soybean and palm oil.
They alleged that reluctance to open letter of credit by some local banks also resulted in hampering the smooth import of crude soybean.
They also said that, after arrival of crude soybean in the country from Brazil and Argentina, they had to pay import bills to the local banks on the present exchange rate of dollar against taka though the rate of greenback at the time of opening letter of credit (LC) was less than the present rate which forced them to increase the price of soybean oil.
They requested the government to take initiatives so that the Bangladesh Bank (BB) could change the present 'deferred payment' system and introduce 'normal payment' arrangement for paying import bills of crude soybean.
To contain the high prices of soybean oil, the government and the traders have been holding regular meetings for refixation of soybean prices.
Two meetings held on January 5, 2012 and December 29, 2011 at the ministry of commerce and at the Tariff Commission office respectively appeared abortive to readjust the prices of soybean and palm oil.
The government has earlier abolished age- old delivery order (DO) system by introducing distributorship to check soybean price hike.
But even after the inception of the distributorship system six months back, the prices of soybean are yet to come down to a tolerable level in the local market.
The government at the latest meeting with the soybean and palm oil refiners had issued a stern warning that any malpractice in the functioning of distributorship system by the unscrupulous traders for their petty business interest would be dealt with severely.
"We will take action against the businessmen who are involved in the manipulation of distributorship system under section 40 of the 2009-10 Import Policy," a high official of the ministry concerned told the FE.
In the retail markets Saturday per litre soybean oil was sold between Tk 126 and Tk 130, while another variety of soybean known as 'super' was sold at Tk 110 to Tk 105 per litre and palm oil at Tk 100 litre.
Different brands of five- litre bottled soybean oil such as Rupchanda was sold at Tk 630 while Teer, Fresh and Pushti brands were sold at Tk 615.
Two- litre bottled Rupchanda brand was sold at Tk 252 and Teer brand at Tk 248. One litre bottled Rupchanda was sold at Tk 127 while Pusti and Teer brands were sold at Tk 125.