FE Report
The country's edible oil refiners are not keeping their word as they have increased the prices of soybean oil both of bottled and loose form, consumers and market experts say.
The commerce ministry at a meeting with the refiners, the apex business body FBCCI held in last week of November 2014 came to a decision that the refiners would reduce edible oil prices.
The commerce ministry asked the refiners to fix the loose soybean oil at Tk 88-89 per litre at mill gate.
The ministry also asked them to fix bottled soybean at Tk 102 per litre at retail from Tk 114-115 per litre earlier, considering the falling trend in global edible oil prices, commerce ministry sources said.
The refiners promised that they would follow the prices of the commerce ministry from the first week of December 2014.
Even though one month after the ministry's initiative, the price of bottled soybean has been reduced, but this was compensated by increasing the price of loose soybean oil, market sources said.
Loose soybean price increased by Tk 6-8 per litre in last seven days. Most of the refiners set bottled soybean oil price at Tk 104-105 per litre when the commerce ministry asked for Tk 100-102 per litre.
Soybean in loose form sold at Tk 104-106 per litre on Friday which was Tk 98-100 per litre seven days back. The price was Tk 92-94 per litre three weeks back, according to key kitchen markets in the city.
"Loose soybean oil price started increasing just after the initiative by the commerce ministry which asked to fix loose oil price at Tk 88-89 per litre and bottled soybean at Tk 100-102 per litre," Md Shafiqe, a retailer at Nawabganjbazar, told the FE.
When the commerce ministry fixed loose soybean at Tk 87-88 per litre, the commodity was selling at Tk 88-90 per kg and Tk 84-85 per litre.
"One litre (1000 ml) soybean is equivalent to 900-910 gramme. The commerce ministry should keep in mind the difference between kilogramme and litre," he said.
Secretary of Consumers Association of Bangladesh (CAB) Advocate Humayun Kabir Bhuiyan told the FE that bottled soybean oil is selling at Tk 104-105 when the government requested the price for Tk 100-102 per litre.
He said prices of soybean and palm are falling for last eight months in the global market, but consumers in Bangladesh got no benefit.
"Market manipulation by major players is responsible for the higher prices of edible oil," he said.
President of Bangladesh Edible Oil Wholesale Merchant Association Md Abdur Razzaque said millers have raised the price of soybean.
He said price at mill gate was Tk 3,600 per maund (37.32 kg) on Thursday which was Tk 3200-3250 few days back.
Two of oil traders at Moulvibazar, the biggest wholesale market in the city, told the FE requesting anonymity that syndication of few refiners and traders are manipulating the market.
They said the government should strictly deal with the issue and bring the unscrupulous traders to book which can stop "illogical" increase in price.
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