Oil volatility continues as retailers yet to start supplying at new rate

Volatility in the edible-oil market continued on Tuesday as refiners had not yet supplied oil to distributors at the newly fixed price.
After a meeting with refiners, the government raised the Maximum Retail Price (MRP) of soybean oil by Tk 8.0 per litre, setting the new price of branded bottled oil at Tk 175.
The price of loose soybean and palm oil has been set as same at Tk 157 per litre, an increase of Tk 9.0 and Tk 15 per litre respectively compared to the previous rate.
However, except from a single company (Teer of City Group), edible oils from other known companies were not found in the groceries along city lanes.
Some stores retailed oil-filled bottles at Tk 190-200 per litre on the day, misrepresenting the staple as supplied from known or comparatively more acceptable bottled-oil companies.
Loose soybean oil prices remained high, ranging from Tk 185-190 per litre, while super palm oil was priced at Tk 175-185 per litre depending on different city markets.
Julfikar Ali, a grocer at Juhuri Mahalla in Mohammadpur, told the FE that distributors at Mohammadpur Krishi Market had informed him to wait another two to three days for newer supplies.
Ali said his grocery store was out of soybean oil and customers were buying mustard oil at Tk 240-250 due to the shortage of soybean oil.
Biswajit Saha, the director of City Group, which is the parent-concern of the bottled oil of 'Teer' brand, said despite all difficulties, his company continued supply in the market.
He said retailers and traders stocked a good amount of oil and took the benefit from it.
Mr Saha said it would take a few days for edible oils to reach retailers with a newer price tag.
The country's annual demand for different edible oil is 2.4-2.5 million tonnes, with over 95 per cent met with imports. In FY24, the country imported around 2.3 million tonnes of different non-refined edible oil, according to the commerce ministry.

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