The government has decided to develop an institutionalised monitoring mechanism for the country's edible oil market in a move to ensure stable supply and prevent market manipulation, sources said.
The decision was taken at a review meeting held at the Ministry of Commerce on June 21, with Commerce and Industries Minister Khandakar Abdul Muktadir in the chair
According to the meeting minutes, the government would establish a coordinated "Systematic and Fair Monitoring System" to keep the edible oil supply situation stable and normal throughout the year across the country.
As per the decision, edible oil traders agreed to provide necessary support and feedback for developing the institutional framework.
Senior officials of the ministry said the system would introduce regular monitoring of edible oil import, stock, supply and distribution activities to strengthen market oversight and improve transparency.
The mechanism is also intended to help authorities quickly identify artificial shortages, abnormal market behaviour and supply disruptions, while ensuring greater accountability among traders and refiners.
The move comes amid an ongoing volatility in the global edible oil market and following proposals from refiners to adjust local prices in line with international trends.
An official who is involved with the issue said the government is now focusing more on structural market supervision instead of relying only on periodic price adjustments.
The initiative, taken under the Prime Minister's directive, also aims to curb hoarding and unlawful market manipulation while protecting consumer interests, according to the minutes.
Representatives of edible oil refiners and traders attending the meeting assured and expressed support for the proposed framework and pledged full cooperation in implementing the monitoring system.
Experts opined that the systematic and fair monitoring system is a necessary and mature evolution in market governance. If fully digitised and fiercely protected from political and bureaucratic corruption, it will drastically reduce hoarding, stabilise supply lines, and provide consumers with a fairer and more transparent market, they viewed.
They, however, noted that if it devolves into a mere reporting requirement-a system of endless forms without rigid field enforcement-it will fail to protect the public from future market manipulation.
The country's current annual demand for edible oils is 2.4-2.5 million tonnes, with over 95 per cent met with imports.
Besides, the government has also moved to tighten oversight of the edible oil market by enforcing mandatory cost audits on refiners and importers.
This is aimed at establishing "logical" consumer prices and curbing alleged market manipulation, sources say.
Under the move issued by the commerce ministry, seven edible oil companies have been brought under a comprehensive cost audit framework covering imports, production, and marketing expenses of soybean and palm oil.
The move has been initiated under Section 3(1) of the Essential Commodities Control Act 1956 and Sections 220(1) and 220(2) of the Companies Act 1994.
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