Processors warn of further rise in edible oil price
Edible oil is likely to become costlier on the days ahead because of the upward price trend of soybean and palm oil all over the world as Bangladesh meets 90 % of its demand through imports, reported processors yesterday.
The rates of the main element cooking ingredient have been soaring for the last several months, putting pressure on the consumers previously suffering from a loss of profits amid the ongoing coronavirus pandemic.
Yesterday, retailers were selling unpackaged palm oil at Tk 102-105 a litre in the market segments in Dhaka town, up 43 % year-on-year. Soybean essential oil in unpackaged kind was up 36 % at Tk 115-120.
Rates of bottled soybean essential oil in several markets in the administrative centre shot, according to info published by the Trading Corporation of Bangladesh. For instance, 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 procedure at TK Group, among the leading importers and processors of commodities, said the cost of crude soybean oil risen to $1,190 per tonne in the international industry recently. It had been $700 a tonne in August this past year.
The cost of crude soybean oil surged by around 70 % in the last half a year, he said, after a gathering with the most notable officials of the Bangladesh Trade and Tariff Commission (BTTC) at its office.
The commission held the meeting to examine the price situation of edible oil in the domestic industry.
Taslim said the production cost of edible essential oil rose by around 40 % because of the spike in the global market.
Bangladesh roughly requires 20 lakh tonnes of edible oil annually, and 90 % of its requirement is going to be met from imports.
Taslim also said that the affect of a rise in soybean oil cost immediately fell on the local marketplace after importers opened letters of credit rating.
Md Dabirul Islam, brain of finance and accounts at Bangladesh Edible Essential oil Ltd, said edible oil refineries spent around Tk 22,000 per tonne to refine crude oil. This cost incorporates both customs duty and progress tax.
Along with the refining cost, Tk 18,000 is added per tonne for bottling.
Islam said the refining expense was first almost the same for all industry players, and there is no scope to control prices unilaterally or perhaps by any syndication as the marketplace was highly competitive.
The price may decline as it pertains drop in the international market, he said.
Md Taslim Shariar, assistant general manager of Meghna Band of Industries, said the recent cost hike was part of an adjustment based on the global market.
Md Mahmodul Hasan, assistant chief of the BTTC, presented a paper on the entire situation of the edible oil market at the conference.
