Don’t increase public discontent by raising soybean oil prices

The new Bengali year did not turn out to be very auspicious for Bangladeshis. The day before Pohela Boishakh (the Bengali New Year), gas prices were raised; the day after, the price of soybean oil increased. Gas prices for new industries went up by 33 percent, and soybean oil rose by Tk 14 per liter. On Tuesday (April 15), Commerce Adviser Sheikh Bashir Uddin made this announcement. After a meeting reviewing the overall situation regarding edible oil imports and supply, the commerce adviser told reporters that the government increased the price of soybean oil in the domestic market based on reduced subsidies, the need to boost revenue collection, and international market prices. However, he stated that this price hike is temporary. He claimed that with increased supply and competition in the market, prices could be brought down in the near future.

But we know that in Bangladesh, once the price of a product increases, it rarely comes down again. On April 13, when the gas price hike was announced, it was already assumed that the prices of other goods would also go up. But even before the impact of the gas price increase took effect, the government itself raised the price of soybean oil. Naturally, this will also affect foods that depend on cooking oil. Yet, the commerce adviser claimed that the oil price increase would not significantly impact people’s lives.

Soybean oil is our main edible oil. According to the government, the annual demand for edible oil in the country is 3 million tonnes. Of that, 700,000 tonnes come from locally produced mustard. Additionally, 600,000 tonnes of rice bran oil have entered the market. To boost competitive capacity, oil from the Army Welfare Organization is also entering the market. Despite all these calculations, we know that every year there’s a huge trade surrounding soybean oil—especially during Ramadan, when syndicates regularly manipulate prices. This year, the government was able to keep soybean oil prices under control during Ramadan. But as soon as Ramadan ended, the price jumped by Tk 14 per liter—something no one likely expected. It seems the government and traders are determined to recover everything with interest. The commerce adviser said the new price setting will allow the government to collect about 5.5 billion taka in revenue. But he didn’t say how the people are supposed to cope with this added burden.

There are fears that the prices of other products will soon rise as well. Egg prices had been under control, but they too are likely to go up. During the winter season, the market had seasonal vegetables, so prices were somewhat lower. Winter is over, and now vegetable prices are rising again. And whenever the prices of essential daily commodities rise, public dissatisfaction with the government grows. Keeping this in mind would be wise for the government. We want to tell the government: don't fuel public discontent by raising commodity prices. The price of soybean oil must be reduced as soon as possible. At the same time, the government must ensure that the prices of other essential goods do not rise further.