Crisis as pricier soybean oil yet to hit market

The crisis created in edible oil supply through a rise in prices has not yet been resolved. Retailers cannot say for sure whether the crisis will end in the next two to three days.

According to wholesalers and retailers in the capital, soybean and palm oil, prices of which have been increased, have not arrived in the market.

A couple of shops in local neighbourhoods have had their soybean oil supplied before Eid, and so they are now selling at a new price set by the government. Besides, consumers are facing harassment in finding out exactly where the oil is available.

Mojibur Rahman, a resident of Badda in the capital, returned from his village home after the Eid vacation and went out to buy oil on Saturday morning.

Speaking about his experience to TBS, he said that he first went to a popular supermarket, but as he did not get oil there, he started looking for it in the grocery shops. After visiting at least 10 shops, he finally got a 1-litre bottle of soybean oil, but again he had to pay Tk200 for it.

The government on Thursday fixed the price of one litre of loose soybean oil at Tk180, one litre of bottled soybean oil at Tk198, a five-litre bottle at Tk985 and loose palm oil at Tk172. But even before Eid, there was a widespread soybean oil crisis across the country and oil disappeared from the market.

Soybean oil was not available in several supermarkets in Rampura, Badda, Moghbazar and Dilu Road on Saturday. It was neither available in the retail shops of Karwan Bazar and shopkeepers could not say when the supply would arrive.

Reefat Hossain, a vendor at Reefat Store in Karwan Bazar, said he had only loose palm oil, but in very small quantities. Although the price is high, he is only selling this oil to some of his designated buyers.

A salesman at Sapna in Merul Badda, who did not want to be named, said it was not known when the supply of soybean oil would arrive.

However, there is a huge demand for mustard oil in most of the stores now and the supply of mustard oil is also quite good. In addition to mustard oil, sunflower and rice bran oil are also available in the shops. Loose and different brands of mustard oil are being sold at Tk250-350 per litre.

Shafiqul Islam, a seller at Sonali Traders, a wholesaler of oil and sugar in Karwan Bazar, said, "There is no old oil; it is difficult to say when the new oil will come to the market. However, oil can be obtained in two to three days."

Taslim Shahriar, senior assistant general manager of Meghna Group of Industries, told TBS that supply has been delayed due to the bank holidays and labour crisis. However, the oil will be available in the market in the next one or two days.

"We are ready to supply in volume more than an average quantity," he added.

Meanwhile, the situation regarding edible oil remained unchanged in the wholesale market of Khatunganj in Chattogram on Saturday after Eid. Per maund (40.90 litres) soybean oil has been sold at a price of Tk7,500 – the same price as it was before the Eid holidays.

At the end of Ramadan, the price of palm oil was Tk7,000 per maund. Palm oil was sold at the same price on Saturday. In the same way, like before, per maund Palm Super Oil was sold at Tk7,200.

However, previously supplied bottled soybean oil is available in various grocery stores in the port city but is being sold at increased prices. It is learned that shopkeepers are selling the oil at new prices by raising the retail price of the bottles.

Ibrahim bin Manzur, an edible oil trader at Khatunganj, said that the sale of goods started in the market on Saturday. However, the price of edible oil remained unchanged.

Regarding the current market for edible oil, Alamgir Parvez, proprietor of RM Enterprise, an edible oil trader at Khatunganj, said that the price of edible oil rose in the international market immediately after Indonesia had announced a palm oil export ban.

"Due to the impact of the move on the international market, the price of edible oil also increased in the domestic market towards the end of Ramadan. But at the time many companies had to incur losses in selling products at the price fixed by the government. This created a supply crisis in the market," he added.