After a stability of one and a half months, price of soybean oil, the most consumed kitchen item in the country after palm oil, increased significantly in last few days when the global price is almost on a static trend.
Market experts said syndication of the importers and allied traders is responsible for the price hike of the item. Winter factor is also a major reason behind the rise in price as many of the traders adulterate soybean by mixing super palm oil with it which is not possible in winter season as palm oil solidifies during the season, they said.
Soybean oil (loose) has been selling at Tk 98-102 per kg in the city's retail markets for the last few days, according to key kitchen markets sources in the city.
Soybean price was Tk 90-92 per kg some seven days back at retail, Md Shafiqe, a grocer at Nowabganj Bazar in the old part of the city said.
He said the price started rising with the advent of winter.
"In winter, palm oil can't stay in disguise of soybean as it freezes," he said jokingly.
He also informed that prices of super palm, normal palm and bottled soybean oil were static.
Md Alamin (Manik), an oil wholesaler- cum retailer at the same kitchen market said that they bought per barrel (194 kg) of soybean at Tk 18,200 from Moulovibazar wholesale on Sunday which was 16,500 a few days back.
"We are selling it to grocers at Tk 96-98 per kg," he said.
President of Bangladesh Edible Oil Wholesale Merchants Association Hazi Mohammad Golam Maula said that the supply of soybean oil by the refiners has come down.
The refiners are delivering oil in less volume, said Hazi Maula, who is also secretary of Moulovibazar Baboshaee Samity, a platform of traders.
He said the price has increased in the depot for the last ten days.
When contacted, general manager (finance) of City Group, sole company of edible oil brand 'Teer', Biswajit Saha said a meeting was held with the importers at the commerce ministry a few days back in connection with the prices of edible oil.
"At the meting, it was decided to fix prices of soybean oil after a meeting with the Tariff Commission. The commission will consider L/C price, freight and other charges and then will fix the oil price," he said.
"But, many of the companies increased the price although the meeting is yet to be held," he said.
He also informed that due to shortage of releasing spots in the Chittagong port, many of the importers refrained from soybean import.
Few importers brought soybean which are being marketed in the country, he said.
However, one of the leading traders requesting anonymity said that few big companies are hoarding oil as they are thinking that the price might increase in the coming days leding to an artificial crisis in the markets.
An official at Department of Agricultural Marketing (DAM) said that winter is a factor in the price hike.
He said many of the traders adulterate soybean by mixing super palm oil with it.
The official said the soybean importers or traders should have reduced the price much earlier as the global price has been falling for the last eight months (from April).
He said highest cost for a kg (not litre) of soybean--- from import level to refined stage--- should not be more than Tk72-75 per kg considering global prices of the last five months which were hovering from $800 to $720 per tonne during the period (June-October).
"But, bottled soybean has been selling at Tk112-115 per 0.91 kg and loose at Tk100-102 per kg since May this year," he said.
When asked, Secretary of Consumers Association of Bangladesh (CAB) Advocate Humayun Kabir Bhuiyan said that it is injustice, not business.
"The commerce ministry should take immediate action against the unscrupulous traders," he said.
"Every winter, the traders increase the price of soybean showing lame excuses," he said.
"The fall in vegetable prices gives some sort of relief to limited income people, but it has been fading away by the hike in edible oil, rice prices and the increase in house rent which is set to be fixed from January next," he added.
Bangladesh has an annual demand for 1.8 million tonnes of edible oil and fat of which soybean comprises 0.35 million tonnes. More than 90 per cent of the demand is met through import.
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