Soybean oil shortage ahead of Ramadan again

With just weeks to go before Ramadan, the supply of bottled soybean oil has significantly dropped in both wholesale and retail markets in the capital, leading to a growing shortage.

Market analysts have alleged that suppliers are intentionally restricting supply ahead of Ramadan, when soybean oil is heavily used, to create an artificial shortage and drive up prices.  

During visits to over a dozen stores in Moghbazar, Karwan Bazar, Kallyanpur, and Shahjadpur today (7 February), it was observed that only a few bottles of soybean oil were available at some large stores. Besides, some grocers were requiring buyers to purchase additional products in exchange for oil.

Karwan Bazar trader Mamun Hossain told The Business Standard that some oil did arrive in the morning, but the quantity was far below demand.  

"A specific company supplies oil each day, but not all dealers deliver at the same time," he explained.  

Ali Hossain, a salesman at Yasin General Store near Kallyanpur bus stand, said they have been getting much less oil than they need for the past two weeks, and now the supply has stopped entirely.  

"The mill owners have reduced the supply to push for a price increase," he alleged.  

SM Najer Hossain, vice-president of the Consumers Association of Bangladesh, said suppliers have created this artificial crisis to pressure the government into approving a price hike.

"We have seen the same pattern before. Ahead of raising prices, they pull oil from the market. This also happened before last year's Ramadan. They selectively distribute oil among a few distributors to make it seem like they are supplying, but they don't disclose the actual quantity. This allows them to control the supply chain," he added.  

As of today, loose soybean oil was selling for Tk185 per kg, while loose palm and super oil were priced at Tk175 per kg. A 5-litre bottle of soybean oil was priced between Tk840–850, and a 1-litre bottle sold for Tk175.  

In November of last year, bottled soybean oil from various brands disappeared from the market, and on 9 December, the price was raised by Tk8 per litre.  

In January, the edible oil traders' association submitted a proposal to the commerce ministry to increase prices further, though a decision has yet to be made.

Condition to buy oil

Mohammad Jasim Uddin, a salesman at Anwar Traders in Karwan Bazar, alleged that suppliers were compelling them to buy additional products like rice, turmeric, or chili powder from the same company in exchange for oil purchases.  

"As a result, some shops are also forcing oil customers to buy extra products," he added.  

Jahanara Ashrafi, a buyer from Shewrapara, said she visited nearly 10 shops but couldn't find any 1-litre or 2-litre bottled soybean oil.  

"Companies are manipulating the situation to hike oil prices by holding customers hostage," she said.

Veggie prices stable

Meanwhile, with a sufficient supply of winter vegetables, prices were relatively stable today.  

New potatoes are available for Tk20–25 per kg, and onions are being sold for Tk40–45 per kg. Cauliflower was priced at Tk20, turnips at Tk20, and beans at Tk25 per kg.  

However, the price of broiler chicken remains high. Jasim Uddin from Anwar Traders stated, "Like last week, the price of 1kg chicken is Tk200, while 1.5kg chicken is being sold at Tk190 per kg."