Edible oil shortage: Suppliers, traders at loggerheads, seek stock-related policy

Suppliers and traders of edible oil are at loggerheads over the essential cooking ingredient supply crunch, particularly before and after Eid-ul-Fitr. They have blamed each other for keeping stock with an ill motive of making higher profits. 

"With a foresight, millers have intentionally cut the supply of edible oil to the market during eid," Golam Mawla, president of the Moulvibazar Traders Association, said while speaking at a meeting on the edible oil situation on Wednesday. 

Subsequently, the majority of the distributors also halted supplying oil, New Market Shop Owners Association General Secretary Abu Taher said.  "A few including City Group supplied a small amount of oil on condition of purchasing other products from them."

"Mill owners before Ramadan said they had enough stock to continue the supply until Eid-ul-Adha. But, they failed to do so, even though they cannot continue supplying oil until Eid-ul-Fitr," said Md Jashim Uddin, president of the Federation of Bangladesh Chambers of Commerce and Industries (FBCCI).

"Also, it was not right that some traders kept stock of edible oil in warehouses instead of outlets in the crisis time. So, they have faced the music, which is very rational," he said at the FBCCI organised meeting at its office in the capital.

S Alam Group Senior General Manager Kazi Salahuddin said the weakness of the commerce ministry's observation was a key reason behind the edible oil crisis in the market.

"We were committed to them for not increasing oil prices. Also, we told them a delay in price adjustment could lead to a crisis and that actually happened," he said. 

In such a situation, Bangladesh Shop Owners Association General Secretary Johirul Haque Bhuiyan urged the government to frame a policy determining how much edible oil dealers, wholesalers, and retailers could stock legally. 

"The government should take stern actions against those who stock oil with ill-motive," he said and called for allowing the import of edible oil by anyone. 

The business leader also suggested the government import at least 20% of oil by the Trading Corporation of Bangladesh on a regular basis and under a large consignment under the government-to-government deal for now. 

Meanwhile, millers were hopeful that Indonesia would not continue the palm oil export ban. "However, we may continue to see the supply crunch in the future. If the government imports 4-5 lakh tonnes of edible oil directly from Malaysia and Indonesia under the G2G model, it would be a relief for us," said Taslim Shahriar, senior general manager of City Group, one of the leading oil importers. 

Earlier, Commerce Minister Tipu Munshi in a separate programme regretted that keeping trust in edible oil traders was his great mistake. "They have broken their commitment."