Another hike in edible oil prices
Edible oil prices witnessed a brand new spike during the last few days in line with rising international prices, supply rationing by processors and wholesalers, and decreasing spending power of the country's fixed and low-income earners.
Consumers at wet markets in Chattogram had to pay about Tk 142 for just one litre of soybean oil yesterday, up 3 per cent from Tk 138 yesterday.
To get loose soybean oil, consumers had to pay up to Tk 126 per litre, up 7 % from Tk 118 yesterday, retailers said.
Prices saw an identical increase in Dhaka.
For example, consumers had to pay between Tk 640-600 for a 5-litre of oil on Friday, which is practically 2 per cent greater than previous prices, shows data compiled by the Trading Corporation of Bangladesh.
The most recent prices of soybean are greater than the prices previously set by the commerce ministry in March.
Md Hasem, a retailer of Fultaz Shop at Hamzarbag Market in the port city, said they were charging higher prices as the refiners had raised the wholesale cost.
"All refiners have increased oil prices together with reduced supplies owing to the import crisis and rising prices in international markets," he added.
Wholesalers at the Khatunganj-Chaktai market in Chattogram and Moulvibazar in Dhaka, two of the country's biggest trading hubs for edible oil, said prices went up by Tk 300 per maund (37 kilogrammes) in the last three days due to a supply shortage amid the countrywide lockdown.
Similarly, palm oil prices grew by 8per cent to Tk 4,100 per maund yesterday from Tk 3,800 on April 14.
"Prices are increasing as the way to obtain oil is falling short of the marketplace demand," said Abdur Rahman, a wholesale trader in Khatunganj market.
Abul Hashem, general secretary of Bangladesh Edible Oil Wholesalers Association, echoed the same.
Importers and traders said that the local edible oil market has once more become unstable as prices in the international market have risen during the last few days.
Besides, the ongoing coronavirus pandemic and recent surge in infections in addition has afflicted supply from major edible oil exporters.
Moreover, the supply chain is being disrupted as a result of countrywide lockdown, they added.
Biswajit Saha, director for corporate and regulatory affairs at City Group, said the majority of Bangladesh's soybean and soybean oil demand is imported from Brazil and Argentina,
However, production and offer has been hampered in those countries due to the resurgence of Covid-19, he added.
Saha went on to say that the price of soybean may increase further in the international market, that may have another effect on the local market.
Abdur Rashid, a wholesaler at Khatunganj market in Chattogram, said the way to obtain edible oil has not increased based on the higher demand during Ramadan.
Bangladesh consumes roughly 20 lakh tonnes of edible oil annually and the fasting month of Ramadan makes up about 10 per cent of this yearly requirement, data from the Department of Agricultural Marketing shows.
Rashid blamed millers for the reduced supply, citing that he did not have the delivery of edible oil consignments against orders made two weeks ago.
