Ramadan commodities: 75,000 tonnes of soybean oil arrives

At a time of soybean oil crisis in the local market, three tankers have arrived at Chittagong Port. These three vessels contain 75,000 tonnes of unrefined soybean oil. According to sources of the importing companies, they will refine the unrefined oil and market it during Ramadan.

There is more good news. Other than soybean oil, 195 thousand (1.95 lakh) tonnes of other Ramadan commodities including chickpeas, split peas, lentils and sugar have arrived in five vessels.

Also, 142 thousand (1.42 lakh) tonnes of wheat has arrived on three vessels, although wheat consumption is not that high during Ramadan. In all, 482 thousand (4.82 lakh) tonnes of Ramadan commodities have been imported in 13 vessels.

The commodities have been unloaded already from some of the ships while some is still being unloaded. The rest of the ships are waiting to be unloaded.

According to Chittagong Port sources, two vessels carrying about 32 thousand tonnes of unrefined soybean oil have reached the port. Another ship carrying 43 thousand tonnes of soybean oil is scheduled to arrive next Saturday.

City Group, Meghna Group, Bangladesh Edible Oil, TK Group and Sena Edible Oil Limited have imported the soybean oil. Earlier, in the first week of this month, 12 thousand tonnes of palm oil was imported.

Another ship brought in 57 thousand tonnes of soybean seeds. Unrefined soybean oil is extracted from the seeds and the rest is used as ‘soymeal' cattle feed.

Importers say the arrival of the three vessels almost at the same time will alleviate the fear of a soybean oil crisis that had been created. Before the arrival of the oil in three tankers, the reserve of soybean oil at the tank terminal dropped to only 14 thousand tonnes. The panic is easing with the arrival of the new shipment.

After being unloaded, the oil will be stored at the tank terminals in Patenga for now. Later this will be transported to the refinery once the import tax has been paid. The refining and marketing will be carried out in succession.

Biswajit Saha, director, City Group said, "Soybean oil prices are increasing in the global market, but we have continued imports. The latest shipment of oil will be marketed after quick unloading and refining of that. Apart from that, new letters of credit have been opened." The new shipment had to be bought at an extra price, he added.

According to the latest transaction records of the Chicago Board of Trade, a commodity exchange of the US, the price of soybean oil has been escalating since the Russia-Ukraine war broke out. On 11 March soybean oil was traded for 1,811 dollar. The price in the international market stood at Tk 155 per kg.

The companies said, although the global prices have gone up, soybean oil has not yet been imported at the rate of 11 March. Import costs are rising. Import costs of the unrefined oil brought through Chittagong port was 1,480 to 1,490 dollars. At that rate a kg of oil costs Tk 127. Importers will be releasing the oil in the market after adding VAT and refining costs, transportation and other related costs.

Just like soybean oil, 58 thousand tonnes of chickpeas and lentils was brought by two ships in the last week of February. Unloading of those commodities ended just a couple of days ago. Besides, a shipment of split peas weighing 47 thousand tonnes is being unloaded now. And a shipment of 90,000 tonnes of unrefined sugar is also being unloaded.

Abul Bashar Chowdhury, chairman of BSM Group, a major importer of pulses, told Prothom Alo, "We import products all throughout the year. Import goes up during the excessive demand for the month of Ramadan."

He added most of the Ramadan commodities imported by his company have already arrived. Only a shipment of split peas imported from Russia got stuck. A small consignment will be reaching just before Ramadan.

*This report appeared in the print and online editions of Prothom Alo and has been rewritten in English by Nourin Ahmed Monisha