Shortage of bottled soybean oil in the market leads to higher price

Hasinur Rahman went to buy bottled soybean oil at the capital's Shewrapara market yesterday afternoon. After visiting five grocery stores, he found a two-litre bottle of soybean oil at only one store. However, he had to pay Tk 15 more than the price labelled on the bottle.

Hasinur Rahman said, "I wanted a one-litre bottle of soybean oil, but I couldn't find it even after visiting several shops. So, I was forced to buy a two-litre bottle."

Not only in Shewrapara but also in other retail markets across the capital, bottled soybean oil is in short supply. Even when it is available at one or two shops, sellers are charging Tk 10 to 15 more than the price written on the bottles.

According to the sellers, ordinary buyers are bearing the brunt of the severe shortage. To attract customers, many shops have started selling open soybean oil.

This information was gathered by visiting various markets in the capital and speaking to sellers. Retailers and wholesale oil suppliers claim that edible oil refining companies are releasing less bottled soybean oil into the market.

Despite reaching out to officials at several oil-supplying companies, no official statements have been received.

Retailers said there is almost no supply of one, two, or five-litre bottles of soybean oil in the market. They are not receiving oil despite repeated requests from distributors.

Only two or three companies are releasing bottled soybean oil, which is far less than the demand. According to the government agency Trading Corporation of Bangladesh (TCB), at the retail level, one litre of open soybean oil is currently being sold at Tk 165-168, while one litre of open palm oil is being sold at Tk 158-159.

The recent supply crisis of bottled soybean oil began about three weeks ago. In response, the government reduced the customs duty on edible oil imports, lowering it by Tk 10 to 11 per kilogram. However, despite this reduction, imports have not increased; instead, a shortage of bottled oil has emerged in the market.

In light of this situation, the Bangladesh Trade and Tariff Commission (BTTC) held a meeting with edible oil refining companies on Thursday.

During the meeting, traders stated that the quantity of soybean oil to be imported (letters of credit opened) for the upcoming Ramadan is at a normal level.

However, they emphasised the need to adjust the prices of edible oil in the domestic market to align with global market prices.

Following the discussion, the Tariff Commission decided to form a committee consisting of representatives from the Institute of Cost and Management Accountants of Bangladesh (ICMAB) and the Institute of Chartered Accountants of Bangladesh (ICAB).

The committee will investigate why the price of edible oil has not decreased, despite the duty reduction, and will submit a report with recommendations as soon as possible.

The supply of winter vegetables in the market has increased, leading to a reduction in prices. Currently, cauliflower and cabbage are being sold at Tk 40-50 per piece, radish at Tk 40-50 per kg, turnip at Tk 60-70, beans of various types at Tk 60-100, and tomatoes at Tk 130-140. In addition, eggplants are being sold at Tk 60-80, papaya at Tk 40-50, and gourd at Tk 50-60 per kg.

Vendors mentioned that the new local green chillies of the season have entered the market, further contributing to the price reduction. Green chillies are being sold at Tk 80-100 per kg.

However, new potatoes have not yet arrived in the market, so their prices remain high. Old potatoes are being sold at Tk 75-80 per kg, while new potatoes imported from India are priced at Tk 110-120 per kg.