Soybean, super palm hover at same level

Prices of edible oil increased significantly in the local market despite its continual plunge in the global market, trading sources said.
Loose soybean and super palm, two major edible oil varieties, were being sold almost at same prices in the country, which market analysts termed 'abnormal'.
They said it was a sign of adulteration of soybean oil both in loose and bottled forms.
Usually, the price of soybean is higher than that of super palm or normal palm oil.
Prices of soybean oil in the global market were hovering between US$695 and $ 738 per tonne while the prices ranged from $575 to $600 per tonne for palm oil during the last six months.
Prices of the two edible oils further declined in July-August by 5-6 per cent in the global markets, according to the commodity web-portal IndexMundi.
But, the prices increased in Bangladesh.
Loose super palm in the kitchen market was sold at Tk 78-80 per kg while soybean at Tk 78-82 per kg on Saturday against Tk 72-73 and Tk 78-80 per kg respectively a month back.
Normal palm oil prices also increased by Tk 10 per kg to Tk75-76.
Prices of bottled soybean oil of different brands were static at Tk 98-100 per litre (0.91 kg).
The Trading Corporation of Bangladesh (TCB) data showed that prices of super palm increased by nearly 11 per cent in a month. The increase was 2.0 per cent for soybean (loose).
Md Ainul Islam, a retailer at Nowabganj Bazar in the city, said loose soybean and palm oil prices started increasing from the first week of August.
He said every drum (approximately 186.6 kg) of super palm cost now Tk 14,500-14,600 against Tk 13,500-13,600 a month back.
He said soybean cost Tk 14,750 per drum against Tk 14,200-14,300 in the beginning of August at the Moulovibazar wholesale market.
He said: "We are selling loose super and soybean almost at the same rate."
A grocer at Banalata Kancha Bazar in the Newmarket area told the FE that super palm became soybean oil for many millers.
He said many brands of soybean oil were adulterated with super palm and it would continue until the winter season.
When asked, President of Bangladesh Paikary Vojya Tel Babosayee Samity, an association of wholesalers, Haji Md. Golam Mowla, said some major refiners were responsible for the price hike.
He said hundreds of traders had not been getting oil timely as per delivery orders since July.
Before the delivery, agents of the refiners bargained with the wholesalers demanding higher prices.
Prices of super palm increased at mill-gates by 10-12 per cent in last four weeks, he said.
He said: "We have informed the commerce minister of it; hope the situation will change."  
Md. Mahbubul Alam, Asst General Manager of T K Group, one of leading refiners, said that they were supplying the essential timely as there was no shortage of edible oil now and the market was static.
He said the prices had not increased at mill gates.
"Edible oil is now selling at 10-12 per cent below the rate of last year," he said.
He also said if the price of oil increases by Tk 0.15-Tk 0.2 per kg at the wholesale level, then the retailers raise it by Tk 4-5 per kg.
He emphasised increased market monitoring by the government to control the unusual price hike in retail markets.
When asked, he said price difference between soybean and super palm at mill gates was more than Tk 5 now.
According to the ministry of commerce, Bangladesh requires more than 1.7 million tonnes of edible oil and the 90 per cent of the demand is met through imports.
Of the imported oil, palm is more than 1.0 million tonnes and soybean 0.4 million tonnes, according to the ministry.
Bangladesh Edible Oil Company , City Group, T K Group, S Alam Group, Meghna Group, Nurjahan Group are major refiners.
Consumers Association of Bangladesh (CAB) Secretary Advocate Humayun Kabir Bhuiyan told the FE that prices of essentials had been declining gradually in the global markets for last two years.
"But it is not happening in Bangladesh. Market syndication is responsible for the price hike of such produce," he said.   
He also said super palm prices touched the level of soybean indicating that the demand was high.
"It is used by unscrupulous traders to adulterate soybean oil," he said.  
A recent study by the Institute of Public Health, Bangladesh revealed that 78 per cent of elements of soybean oil, both loose and bottled, sold in the market were adulterated.
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