Traders increase edible oil prices without informing govt: Commerce Adviser
Commerce Adviser Sk Bashir Uddin said there is no legal basis for the way traders have raised edible oil prices in the market.
Speaking to journalists at the Secretariat on Wednesday afternoon, he said he had learned the issue just half an hour earlier.
He added that the Ministry of Commerce will take action regarding the matter. Traders have increased edible oil prices without informing the government, he added.
The Commerce Adviser further said that yesterday, Tuesday, the advisory committee on public procurement approved a proposal for the Trading Corporation of Bangladesh (TCB) to purchase 15 million liters of edible oil, including 5 million liters of soybean oil and 10 million liters of rice bran oil.
He noted that the government purchased edible oil from traders yesterday at a certain price, yet today it is being sold in the market at Tk 20 higher, and he cannot find a rational explanation for this.
The issue arises because importers and marketing companies quietly raised the price of soybean oil for consumers without prior notice, increasing it by Tk 9 per liter.
When asked how traders have become powerful enough to bypass the government and raise prices, the adviser responded, “That question should be asked of the traders. We have discussed and are taking steps. This is not a matter of going into the market with a sword.”
Sk Bashir Uddin added, “If there is a valid reason for the price increase, it can be discussed. The government wants to keep the supply system smooth and does not want to disrupt it.”
Edible oil traders have claimed that they do not need permission from the ministry or the Tariff Commission to raise prices. The Trade Adviser commented, “That is their statement. We do not accept it.”
Regarding preparations for Ramadan, the Commerce Adviser said, “Preparations are good. We have seen that the amount of letters of credit to be opened at the import stage is even higher than last time, so supply will not be disrupted.”
He also noted that prices of some items in the market have decreased. Sugar prices are falling. Chickpeas will also become cheaper. Prices of lentils and eggs have decreased. Prices of some other items have also fallen. The government wants a reasonable solution for any issue, he said.
Meanwhile, this afternoon, a meeting was held at the Ministry of Commerce on the draft Essential Commodities Act. Present at the meeting was AHM Shofiquzzaman, former secretary and president of the Consumers Association of Bangladesh (CAB).
Speaking to journalists after the meeting, Shofiquzzaman said, “Under this law, the Ministry of Commerce sets the prices of certain commodities. There is a formula for how prices are determined. The sudden 9-taka-per-liter increase in edible oil is problematic. If the Edible Oil Refiners Association raises prices without consulting the Ministry of Commerce, I would say it violates the law.”
He added, “Raising oil prices without the Ministry’s permission is a matter of consumer rights. We are waiting to see the measures that the Commerce Adviser mentioned.”
The CAB president also noted that the law provides for closing down refining factories if necessary. “There is a Competition Act and a Consumer Rights Protection Act. If someone hoards and raises prices, special laws can be applied. We want to see the application of those laws.”
He further observed that recent monitoring has been inadequate. Alongside politics and law and order, commodity prices are also a major issue. Market monitoring should be strengthened in the interest of consumers, he added.