No shortage of soybean oil: Tariff Commission
The supply of the product has increased by 25% in January this year, compared to same period last year
Despite a noticeable shortage of bottled soybean oil in Dhaka's kitchen markets, the Bangladesh Trade and Tariff Commission (BTTC) has assured that there is no actual shortage of edible oil in the market.
The regulatory body attributes the unavailability of bottled soybean oil to both artificial and actual information shortages.
Artificial shortages fuel panic
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Over the past few days, Dhaka has witnessed a shortage of both branded bottled oil and non-branded loose soybean oil. Market analysts have raised concerns that suppliers are deliberately restricting supply in anticipation of the holy month of Ramadan, when demand for soybean oil surges.
In response to the situation, BTTC Chairman Moinul Khan held a special meeting with traders today to discuss the overall supply situation. The meeting included representatives from leading edible oil-producing companies.
Edible oil imports up 35%
The BTTC confirmed a 35% increase in edible oil imports, with Letters of Credit (LCs) rising too, according to a press release.
Following the discussion, they assured that the international price of edible oil remains stable, which should help ensure consistent supply and pricing in the local market.
The BTTC also emphasised that the relevant agencies would closely monitor the market at every stage, from production to distribution, to protect consumer interests.
Some allegations surfaced that some companies have been pressuring traders to buy additional products, such as rice, turmeric, or chili powder, in exchange for purchasing oil. The BTTC warned such practices violate laws and promised legal action if proven.
In addition, the commission advised district administrations and agencies in border areas to investigate whether informal trade in edible oil is taking place, further complicating the supply issue.
Supply Increased by 25%
Producers at the meeting noted that compared to previous years, they had increased supply over the past few months.
Amitabh Chakraborty, a representative from City Group, reported supplying 50,700 tonnes of edible oil in January, including 22,242 tonnes of bottled oil, up from 14,262 tonnes last year.
Similarly, GM Taslim Shahriar from Meghna Group reported that their January supply had reached 47,668 tonnes, including 15,000 tonnes of bottled oil, up from 12,000 tonnes in January of the previous year.
TK Group's Shafiul Atahar Taslim also highlighted that their supply of bottled oil had risen to 11,810 tonnes in January, compared to 9,500 tonnes last year.
After analysing the data, the BTTC stated that the supply of bottled soybean oil has increased by nearly 25% in January this year, compared to the same month in 2024.
Meanwhile, traders said that several ships with 150,000 tonnes of edible oil are awaiting dock at Chattogram port, soon to supply the local market.
However, field-level traders suspect stockpiling and selling open oil in bottles for profit may fuel the shortage. They also expressed concerns over informal trade in neighboring countries.
