Special committee working to rein in edible oil prices: minister

A high-level committee of the commerce ministry is working to ensure fair prices of all essential commodities, including edible oil, according to Commerce Minister Tipu Munshi.

"A decision has been taken to sell all brands of loose edible oil in consumer packs or bottles to help easily identify brand names and prevent adulteration of edible oil in the market," Munshi said during a press briefing after a meeting with edible oil traders at his office yesterday.

"Besides, the commerce ministry, industry ministry and various businessman are also working in this regard. Hopefully, they will be able to implement it soon," he added.

The commerce minister also said that fair prices of import-dependent products would be ensured after considering international market prices.

"No one will be allowed to take the opportunity to make extra profit in excuse of the international market price," Munshi said.

During the meeting, officials of the commerce ministry submitted a report to the minister, outlining the steps to be taken to control the price of edible oil.

According to the report, edible oil manufacturers are causing problems in the product's supply chain to local markets as they have issued advance sales orders (SO-Sleep Order) in excess of their production capacity.

In addition, the SOs issued by the companies are handed-over one to another several times while creating huge profit opportunities for market players.

The report also said that if the price of the product tends to rise in the international market, companies reduce the supply of oil through pre-issued SOs and issue new SOs.

For this reason, the market of the product has become unstable in the market, it said.

To address these supply chain issues, the report also said that edible oil producers should take steps to ensure that SOs are not issued in excess of their capacity and that the SO is valid for only 15 days.

Commerce Ministry Secretary Md Zafar Uddin, Chairman of Bangladesh Trade and Tariff Commission Munshi Shahabuddin Ahmed, Chairman of TCB Brigadier General Ariful Hasan, Chairman of Meghna Group Mostafa Kamal and senior officials of the ministry were also present in the meeting.