TCB buying 1.10cr litres of soybean oil for Ramadan

The government is procuring 1.1 crore litres of soybean oil and 8,000 tonnes of lentils for the Trading Corporation of Bangladesh (TCB) to sell at reduced prices during the upcoming Ramadan.

On Wednesday, the Cabinet Committee on Public Purchase approved the two procurement proposals along with 13 others.

Briefing journalists on the outcomes of the meeting, Cabinet Division Additional Secretary Syed Mahbub Khan said soybean oil and lentils are being bought in bulk for around Tk194.57 crore. Oil will cost Tk176.88 per litre, which was Tk177 during the previous purchase. Meghna Edible Oils Refinery will supply the soybean oil.

He said the lentils will be bought from the local agent of a Turkish company at Tk91.60 a kg, and the 8,000 tonnes will cost a total of Tk73.29 crore.

Asked whether there is any plan to reduce the prices of products supplied by the TCB for Ramadan, Commerce Minister Tipu Munshi said, "There is no scope to reduce the price."

"We have to buy products for TCB every month. Now we have to buy a little more ahead of Ramadan," he also said at the press briefing.

TCB used to sell products when Ramadan approached. But it is now selling the products at subsidised prices to 1 crore households every month amid the economic crisis. Currently, the state-owned agency is selling soybean oil at Tk110 per litre, sugar at Tk60 per kg, and lentils at Tk70 per kg.

In the rising market, bottled soybean oil costs Tk187 per litre, sugar costs Tk120-125 per kg, and lentils cost Tk110-140 per kg.

Although TCB sells oil, sugar, and lentils on a regular basis, it adds chickpeas and dates during Ramadan.

Usually, a section of traders increases the prices of these products every year before Ramadan, cashing in on the items' additional demand in this fasting month.

According to the commerce ministry, the demand for sugar is 150,000 tonnes per month, which doubles to 300,000 tonnes in Ramadan. Edible oil has a similar demand.

During Ramadan, the demand for lentils increased from 40,000 tonnes to 1 lakh tonnes. And the monthly demand for onions doubled from two lakh tonnes to four lakh tonnes. In Ramadan, the demand for chickpeas and dates is 1 lakh tonnes and 50,000 tonnes, respectively.

Fruit imports will resume only when the situation improves  

The demand for fruits also increases during the month of fasting. The demand for dates, in particular, skyrockets from 5,000 tonnes per month in normal times to 50,000 tonnes during Ramadan.

It is totally import dependent. Apart from this, traders import various kinds of foreign fruits.

However, traders have been complaining that there is a problem with the import of fruits due to various restrictions.

In this situation, Commerce Minister Tipu Munshi advised people to rely on domestic fruits for the time being.

There is a problem with importing fruits during Ramadan: letters of credit (LCs) cannot be opened, and the price of fruits is increasing day by day.

Asked whether the duty on imports of fruits will be reduced, the minister said, "Fruits are abundant in the country. Now we have to be cautious so that there is no extra pressure on the foreign currency. Moreover, the local fruits need to have a good price. As a result, LC's options have been somewhat restricted. It will be opened only when the time is right."

"Now it is necessary to save dollars. There is more emphasis on what is essential among daily necessities," he added.