Edible oil prices hiked again

The government increased prices of edible oil yesterday, less than a month after doing the same citing price hike in the international market.

On February 17, Commerce Minister Tipu Munshi said the prices in the domestic market had been adjusted with that of the international market.

A national price setting committee, a body under the commerce ministry, yesterday hiked the prices after consultation with importers, millers, wholesalers and trade body leaders, it said.

At retail, the price of not-packed palm oil (super) has been fixed at Tk 109, up from Tk 104 per litre fixed last month. Prices of not-packed soybean oil have been fixed at Tk 117, up from Tk 115 per litre.

The retail price of branded canned soybean oil has been fixed at Tk 139 from Tk 135 per litre. Prices of five-litre branded canned soybean oil have been fixed at Tk 660 from Tk 630 per litre, according to a statement from the commerce ministry.

The ministry in its statement mentioned that the demand for edible oil in Bangladesh is nearly 20 lakh tonnes a year and 90 percent of the demand is met by imports.

It also said prices of non-refined soybean oil were $1,275 a tonne and non-refined palm oil $1,037 a tonne.

It cited high freight charges too.

Abul Hashem, general secretary of Bangladesh Edible Oil Wholesalers Association, said he did not get any letter regarding the price hike.

"I don't know about the latest prices of edible oil," he told The Daily Star by phone.

The millers have already been selling the edible oil at higher rates compared to the government fixed rates of last month.

The latest prices by the national committee is just endorsing the already hiked prices of edible oil in the local market, he said.

Hashem added that not-packed soybean oil was sold for Tk 4,700-Tk 4,730 per maund yesterday, while the price was between Tk 4,300 and Tk 4,400 a month ago.

Not-packed palm oil was sold between Tk 4,000 and Tk 4,050 per maund yesterday and the price was Tk 3,600-Tk 3,700 a month ago, he said.

The edible oil price in the local market would have come down significantly, had the government owned Trading Corporation of Bangladesh (TCB) come up with adequate supply of the item at an affordable price, he said.

He fears that many millers might not supply the wholesalers timely at the previously fixed prices.

Mosharraf Hossain, a retailer at Mohammadpur Town Hall market, said not-packed palm oil was available for Tk 118-Tk 119 per kg yesterday as the prices of the item also rose in the wholesale level.

One-litre canned soybean oil was sold between Tk 135 and Tk 140 yesterday and five-litre canned soybean oil Tk 630-Tk 655, he said.

Bishwajit Saha, general manager (marketing) of City Group, a local business conglomerate, said the proposal from the refiners was even higher rates than the government fixed as the prices of crude palm and soybean oil went up in the international market.

"However, we have to follow the government decision," he told this paper by phone.

"We will sit again after 15 days to review the prices. If the prices fall in the international market, we will also reduce the prices in the domestic market," Bishwajit said.

Md Jafar Uddin, secretary of the commerce ministry, said oil prices are reviewed and fixed on the basis of average prices of previous month under a rule that was established in 2011 by the ministry.

Since the prices went up in the international market significantly, prices of the item have been reviewed and re-fixed so that importers do not feel discouraged, he said.

He added that if the National Board of Revenue reduces the import tariffs, the edible oil price might come down a bit in the local market, Jafar added.