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Edible oil price falls in int’l market but not in country

Published : Sunday, 26 June, 2022 at 12:00 AM  Count : 484

The price of refined edible oil has decreased 26 per cent in the international market but initiative to lower the local price is not in sight yet.  
According to sources, Bangladesh imports large quantities of refined soybean oil from Argentina, a South American country. The price of refined soybean oil imported from the country has come down significantly in the last one month.
Importers claim that the dollar price has risen despite a slight decline in world oil prices. As a result, import expenditure has remained the same. That is why prices are not going to be reduced in the country's market.
According to sources, the Bangladesh Trade and Tariff Commission (BTTC) calculated that the price of crude
soybean oil in Argentina last Wednesday was US $1,464 per ton, up from $ 1,970 a month ago. As a result, the price of crude soybean oil has dropped by about 26 per cent in one month.
An analysis of World Bank data shows that the average price of refined soybean oil in 2019 was $ 765 per ton. In 2020, the price was $ 838 and in 2021, the price of soybean was $ 1385 per ton. But in March this year, the price of soybean oil rose to $ 1956 per ton.
In April, the price of refined soybean oil dropped to $1947 per ton. It is currently being sold at $ 1464 per ton.
The Consumers Association of Bangladesh (CAB) has demanded immediate adjustment of edible oil prices in the country. SM Nazer Hossain, vice-president of the CAB Central Committee, told the Daily Observer, the price of edible oil was rising in the country despite the continuous decline in the international market.
Earlier, the Commerce Minister had repeatedly promised price adjustment, but the results of that hope have been negative. He said that even though the price of soybean oil in the world market has come down by $200 to $ 490 per ton in three months, the traders in the country have increased the price of soybean by Tk51 per liter in two phases in two months.
He said the anarchic situation in the edible oil market was due to the fact that the Trade and Tariff Commission in the country was not as keen on raising prices as it was on lowering prices. Whereas the price in the international market increases, the importers increase the price of edible oil in the domestic market. But the price of the product in the domestic market does not adjust even after a long period of decline in the international market, which is very unfortunate.
Mostafa Abid Khan, a former member of the Tariff Commission, said that the fall in prices in the world market is good news. The problem is that the value of the dollar has risen in the country. Now we have to review the cost of bringing to the country by combining the world market price, dollar price and ship fare and to see if the country has been affected accordingly. While visiting different kitchen markets in the capital on Saturday this correspondent found that loose soybean oil was being sold at Tk 180. Bottled soybeans are being sold at Tk 198 per litre. And a five litre bottle costs Tk 975 to Tk 980. However, in the space of a week, the price of palm oil has come down a bit. It is being sold at Tk 165 to Tk 170 less than five to seven taka per litre.
Mostafa Haider, president of the Bangladesh Vegetable Oil Refiners and Vegetable Manufacturers Association, said prices in the world market have not dropped much. Even if there is a slight decrease, its impact on imports will not be felt now. Because the dollar price has risen in the country. In addition to this price is associated with the cost of shipping. However, if the price of edible oil falls in the world market, the issue of re-fixing the price in the country's market will be considered in consultation with the government, he said.

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