No respite from edible oil crisis, consumers in distress

Despite a drop in prices in the international market and an increase in imports and supply, the edible oil crisis continues in the local market. Consumers are particularly frustrated by the alleged artificial shortage of soybean oil, with traders either not selling it or charging higher prices. Many people blame the government for failing to control this ongoing chaos, which has persisted for months. With the holy month of Ramadan approaching, there are growing concerns over another price hike, yet the administration appears to have taken no effective measures to prevent it.

Recently, the Trade and Tariff Commission held a meeting with representatives of the country’s leading edible oil producers. During the discussion, company representatives stated that there is no shortage of edible oil in the market. On the contrary, supply has increased significantly compared to the previous year, and soybean oil imports have exceeded demand.

However, the market is still facing a crisis. In response, traders have suggested that some individuals at the grassroots level may be hoarding extra stocks. Additionally, some wholesalers and retailers are reportedly removing oil from bottles and selling it as loose oil at higher prices for greater profit. Meanwhile, representatives of certain supply companies have raised concerns about smuggling, as edible oil prices are higher in neighboring countries.

Consumers in Distress
A visit to various markets in the capital reveals that many consumers are unable to buy soybean oil even at prices higher than the maximum retail price printed on the bottles. While small bottles of 1-2 liters are available, 5-liter bottles have nearly disappeared. As a result, people are being forced to buy both bottled and loose oil at inflated prices. In some markets, grocery store owners are even selling soybean oil on the condition that customers also purchase rice, lentils, or flour.

Consumers complain that the edible oil crisis has persisted for a long time, yet market monitoring authorities have failed to address it. Even when irregularities are detected, they seem to be ignored. Those responsible for creating this "artificial crisis" remain beyond the reach of law enforcement due to weak market monitoring by the government.

Increased Supply, No Impact on the Market
Despite a decline in edible oil prices in the international market, and a significant increase in domestic supply, the crisis persists. Leading edible oil producers claim that supply has risen far beyond demand. According to their data, the supply of bottled soybean oil in January this year increased by at least 25% compared to the same period last year.

Meanwhile, customs data shows that edible oil imports surged by nearly 35% in the two months between December last year and January this year. The number of letters of credit (LCs) issued has also increased at the same rate. Additionally, prices in the global market have remained stable.
Increased Supply from Major Companies.

Amitabh Chakraborty, an advisor to City Group, said that in January this year, they supplied 50,700 tons of soybean oil, including 22,242 tons of bottled oil. In comparison, during the same period last year, their bottled oil supply was only 14,262 tons. This means that in January 2024, the company marketed more than three and a half times the amount of bottled oil compared to the previous year.

Similarly, Taslim Shahriar, Deputy General Manager of Meghna Group of Industries (MGI), reported that they supplied 47,668 tons of soybean oil in January, including 15,000 tons of bottled oil. In contrast, their supply in the same month last year was 25,000 tons, with 12,000 tons being bottled oil. This indicates that Meghna has nearly doubled its supply compared to the previous year.

Shafiul Atahar Taslim, Director of TK Group, also confirmed an increase in supply. In January last year, their supply was 9,500 tons, which increased to 11,810 tons this January.

Traders further mentioned that several edible oil-laden ships are currently waiting to dock at Chattogram port in preparation for Ramadan. These shipments, expected to be added to the local supply chain soon, amount to approximately 150,000 tons of edible oil.

However, Commerce Advisor Sheikh Bashir Uddin assured that the edible oil crisis in the market will be resolved within the next seven to ten days. He also stated that there is no possibility of price instability for essential Ramadan commodities such as chickpeas, peas, dates, lentils, and sugar, as there is no shortage of these products in the market.