Edible oil crisis: Commerce ministry meeting with mill owners ends without decision
Traders noted a significant rise in global edible oil prices and called for domestic prices to be adjusted accordingly
A meeting between Commerce Adviser Sheikh Bashir Uddin and edible oil mill owners ended today (8 December) without a decision regarding the ongoing crisis in the market.
They are scheduled to sit again tomorrow to reach a decision on the matter, meeting sources said.
A shortage of bottled soybean oil has been observed nationwide, including the capital city.
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In response to this situation, the commerce adviser convened a meeting with mill owners to address the issue.
A commerce ministry official, wishing anonymity, told TBS that the mill owners claimed they were supplying oil as usual and denied responsibility for the shortage.
When asked about pricing, the official clarified that the mill owners had not formally proposed an increase in edible oil prices.
"However, they highlighted a significant rise in the international market and urged for domestic prices to align with global market rate," he said.
The official said no decisions were made in today's meeting regarding price adjustments or other measures.
A follow-up meeting between Bangladesh Trade and Tariff Commission officials and the mill owners is scheduled for tomorrow morning, he added.
Since September, mill owners have been urging the government to increase the price of edible oil. Amidst high inflation, rather than raising prices, the government has sought to appease the mills by offering duty concessions. In October, import duties on soybean and palm oil were reduced in two phases.
Two duty cuts – on 17 October and 19 November – reduced the import duty on crude soybean and palm oil from Tk17-18 to Tk7 per kilogram, a decrease of Tk10-11 per kilogram.
