Sudden rise in edible oil price

Consumers in Bangladesh have no respite from the whims of people engaged in import, manufacture and sale of daily essentials. If they decide to play with sugar today, it could be any other item tomorrow. This time the refiners -- wholesalers have pointed their accusing fingers at the former -- have, reportedly, picked up soyabean oil. Without any valid reason, the price of a litre of soyabean oil has increased by Tk 12 to Tk 15 last week. The wholesalers have alleged that the refiners of soyabean oil were failing to meet their demand for the item. But the refiners are countering the allegation with the claim that the demand for the item has gone up suddenly with the advent of the winter season. The latter tend to support the price hike also citing a factor such as the continuous erosion of the value of the taka against the US dollar. Interestingly, the refiners have not cited their pet reason -- soaring international prices -- this time for they knew none would buy it. In fact, between May and November this year, soyabean oil prices declined by more than 11 per cent in the international market. Only during the past one week, the price has again started rising albeit at a very slow pace. The refiners have the refining capacity of 2.5 million tonnes as against the demand for 1.5 million tonnes of edible oils. Newspaper reports have claimed that at least 10 big refiners who did not offer any price comfort to consumers when the international price of the edible oil was going down, have suddenly hiked the price of the item. In fact, a 12 per cent increase within just two to three days in unjustified for the stock of the de-gummed soyabean oil available with the refiners, in most cases, is two to three months' old, meaning that imports of the item were done when the international market price was on the declining trend. Another reason -- a sudden spurt in demand -- is held responsible for the soyabean oil price hike. Traders say the demand for palm oil that gets frozen in cold winter days has declined, resulting in an equivalent increase in the demand for soyabean oil. Allegations have it that a section of unscrupulous millers and traders mix a substantial volume of a relatively low-priced palm oil with soyabean oil. However, they have to skip the malpractice during the winter for understandable reasons. This might sound cynical. But the fact remains that anything is possible in this country where adulteration of food items is rampant. The commerce ministry which recently saw a change of its helmsman has until now not reacted to the press reports on soyabean oil price hike. This apathy is unacceptable when the consumers are having the toughest times at the moment because of high price inflation. None would appreciate any repetition of the earlier practice of holding frequent meetings with the traders who every time made false promises to lower the prices of essentials. The new commerce minister must try to find out whether the sudden increase in edible oil prices is justified or not. Gathering relevant information on the issue should not be any problem, for a number of bodies have been formed in the recent past in the name of market and price monitoring. If the hike is found unjustified, the government should act in accordance with the laws concerned.