Despite rising imports, palm oil prices spiral out of control in Ctg's Khatunganj
The government reduced the price of refined palm oil to Tk150 per litre on 12 August, down by Tk19, but on spot visits show the decision is not being implemented
Highlights:
- Palm oil prices rising in Chattogram despite higher imports
- Government price cut to Tk150 per litre not enforced
- Wholesale prices remain high despite falling global booking rates
- Traders accused of syndicate manipulation, ignoring global price drops
- Consumer groups blame weak government monitoring and enforcement failures
- Soybean oil prices also rising, up 13.73% year-on-year
The price of palm oil continues to rise in Chattogram's Khatunganj wholesale market despite a significant increase in imports and government price adjustments.
The government reduced the price of refined palm oil to Tk150 per litre on 12 August, down by Tk19, but on spot visits show the decision is not being implemented.
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Instead, prices rose further in Khatunganj. Super palm oil is now selling at Tk160–165, compared to Tk150 a month ago, while crude palm oil is going for Tk153-160.
According to National Board of Revenue (NBR) data, 18,98,222 tonnes of palm oil were imported in the first eight months of this year, up from 16,69,604 tonnes in the same period last year — an increase of more than two lakh tonnes.
Yet, prices in Khatunganj show the opposite trend. Trading Corporation of Bangladesh (TCB) figures reveal that in the past year, the price of palm oil rose by 12.19%.
Wholesale traders attribute the rise to fluctuations in international booking rates, especially in Malaysia.
In June, the booking rate there was 4,050 Ringgit, with Khatunganj prices at Tk5,650 per maund. Later, when bookings rose to 4,600 Ringgit, local prices climbed to Tk6,100.
Even after the booking rate fell to 4,350 Ringgit, the Khatunganj price remained at Tk5,980 per maund.
Md Mohiuddin, legal affairs secretary of the Khatunganj Trade and Industries Association, general secretary of the Chaktai-Khatunganj Aratdar Samity, said, "The impact on Khatunganj is due to the rise in booking rates in the world market. However, the supply is quite good. Prices usually increase when demand is high, but demand is currently low. Unless the dollar rises, there is no possibility of further price hikes."
However, one trader, requesting anonymity, said, "A syndicate increases the price of oil by citing global trends. But when prices fall abroad, they do not decrease here. Big traders hold onto the rate, which impacts both wholesale and retail markets."
Consumers left unprotected
Consumer rights groups argue that government monitoring remains weak. SM Nazer Hossain, Chattogram divisional president of the Consumers Association of Bangladesh (CAB), said, "The government set the price of palm oil, but it has not been implemented. Traders always give the excuse of the world market. But when prices drop abroad, there is no impact locally.
"The government does not take proper action, so traders do as they wish. If a criminal is not punished, they will continue to do the same thing repeatedly."
Officials of the Directorate of National Consumers' Rights Protection (DNCRP) said raids are conducted on such issues.
Mahmuda Akhter, Chattogram divisional assistant director of DNCRP, told TBS, "We regularly conduct raids on these issues. I am currently on holiday for Puja. After the holiday, we will speak with the senior official on this matter and conduct a raid."
In addition to palm oil, soybean oil prices have also jumped. Unpackaged soybean oil is now selling at Tk175–178 per litre, compared to Tk168 last month.
TCB data shows the price of soybean oil rose by 13.73% year-on-year.
Major importers
NBR data show that TK Group was the largest importer of palm oil in the first eight months of this year, bringing in 7,01,009 tonnes. Abul Khair Group followed with 5,59,242 tonnes, while City Group imported 2,52,786 tonnes and Meghna Group 1,79,990 tonnes.
Several other companies, including Pran Group, Akij Bakers, Olympic Industries, Bombay Sweets, Nestle Bangladesh, and Square Food & Beverage Limited, imported palm oil for use in food production.
Large groups such as TK, City, Abul Khair, and Meghna refine crude palm oil in their own factories before supplying it to the wholesale market.
