Edible oil prices rise again at Khatunganj

The prices of loose soybean and palm oil have gone up by Tk 150-200 per maund at Chattogram's Khatunganj wholesale market overnight for a supply crisis although the importers maintain there is no shortage at their end.

"The supply is not even half the market demand," said Abdur Rahman, a wholesale trader in the Khatunganj market.

The dealers have rationed the supply of oil of all brands in the market, he said, adding that wholesalers were compelled to buy oil at a higher price than the government-set price.

The government has fixed the wholesale price of loose soybean oil at Tk 136 per litre and palm oil at Tk 127 per litre.

In turn, the traders are selling the edible oil at Tk 7-11 more per litre in the port city markets.

It was not possible to supply oil as per the demand due to the reduced supply of oil from the mill, said Shahedul Alam, a dealer of City Group and proprietor of RN Trading.

"The price of any product goes up if the supply is less than the demand. If the supply is not increased, there is no point in monitoring the market via the mobile courts," he added.

Loose soybean oil was selling at Tk 5,800-6,000 per maund (about 37 kilograms) and loose palm oil at Tk 5,170-5,320 at Khatunganj wholesale hub.

Biswajit Saha, director for corporate and regulatory affairs of City Group, a leading commodities importer, maintains that the supply of edible oil is normal.

The benefit of the government's duty waiver on edible oil is not reaching the consumers due to poor surveillance of the markets and mill gates, said SM Nazar Hossain, president of the Chattogram chapter of the Consumers' Association Bangladesh.

Multiple teams of district administration are monitoring the market regularly, said Sumani Akhter, additional deputy magistrate.