Processors warn of further rise in edible oil price
Edible oil is likely to become costlier in the days ahead because of the upward price trend of soybean and palm oil worldwide as Bangladesh meets 90 per cent of its demand through imports, said processors yesterday.
The prices of the key cooking ingredient have been soaring for the last several months, putting pressure on the consumers already suffering from a loss of income amid the ongoing coronavirus pandemic.
Yesterday, retailers were selling unpackaged palm oil at Tk 102-105 a litre in the markets in Dhaka city, up 43 per cent year-on-year. Soybean oil in unpackaged form was up 36 per cent at Tk 115-120.
Prices of bottled soybean oil in different markets in the capital shot, according to data compiled by the Trading Corporation of Bangladesh. For example, the price of a one-litre pack rose 25 per cent to Tk 135 to Tk 140.
Md Shafiul Ather Taslim, director for finance and operation at TK Group, one of the leading importers and processors of commodities, said the price of crude soybean oil increased to $1,190 per tonne in the international market recently. It was $700 a tonne in August last year.
The price of crude soybean oil surged by around 70 per cent in the last six months, he said, after a meeting with the top officials of the Bangladesh Trade and Tariff Commission (BTTC) at its office.
The commission held the meeting to review the price situation of edible oil in the domestic market.
Taslim said the production cost of edible oil rose by around 40 per cent because of the spike in the global market.
Bangladesh roughly requires 20 lakh tonnes of edible oil annually, and 90 per cent of its requirement is met from imports.
Taslim also said that the impact of an increase in soybean oil price immediately fell on the local market after importers opened letters of credit.
Md Dabirul Islam, head of finance and accounts at Bangladesh Edible Oil Ltd, said edible oil refineries spent around Tk 22,000 per tonne to refine crude oil. This cost includes both customs duty and advance tax.
On top of the refining cost, Tk 18,000 is added per tonne for bottling.
Islam said the refining cost was almost the same for all market players, and there was no scope to manipulate prices unilaterally or by any syndication as the market was highly competitive.
The price may decline when it comes come down in the international market, he said.
Md Taslim Shariar, assistant general manager of Meghna Group of Industries, said the recent price hike was part of an adjustment in line with the global market.
Md Mahmodul Hasan, assistant chief of the BTTC, presented a paper on the overall situation of the edible oil market at the meeting.