Bottled soybean oil shortage hits retailers, onion and potato prices drop

There is a shortage of bottled soybean oil in the kitchen markets, and retail sellers are struggling to buy enough at wholesale prices.

After speaking with about 10 sellers in Karwan Bazar, it was found that they have been receiving only a limited supply of bottled oil for the past 10 days.

Ali Hossain, a sales assistant at Yasin General Store, told TBS, "We have been getting only half of the required amount of bottled soybean oil for the past 10 days."

Currently, a one-litre bottle of soybean oil is selling for Tk167 in the market.

Mohammad Jasim Uddin, a seller at Anwar Traders, said, "Since yesterday (Thursday), we haven't received any bottled oil. This shortage has been going on for about 10 days. We are now buying one litre at Tk165 wholesale. After adding our costs, we are not making any profit. If customers can't get oil, they won't buy other products, so even though we aren't making money, we keep it in stock."

To keep oil supplies steady, the National Board of Revenue (NBR) reduced the value-added tax (VAT) on edible oil imports from 10% to 5%, with the change announced on 19 November.

Earlier, the NBR had removed a 15% VAT on locally produced oil and a 5% VAT on local businesses for both refined and unrefined soybean and palm oil, starting 17 October. As a result, only a 5% VAT is now applied at the import stage.

 Onion, potato prices decline

In other commodity price developments, domestic onion prices have fallen by Tk20 per kg in the past month and are now selling for Tk130-135. 

Traders say that the decrease in onion prices is due to the sprouting of onions and an increase in the supply of imported onions. Prices are expected to continue falling in the coming days.

Mohammad Nurul Islam, a wholesale onion seller at Karwan Bazar, said, "Onions have been imported from India, Pakistan, and Egypt. Additionally, the sprouting of onions in the market has caused prices to fall. Domestic onions are now selling for Tk120 per kg, Indian onions for Tk90 per kg, and Egyptian onions for Tk84 per kg."

At retail, domestic onions are priced between Tk130-135 per kg, Indian onions between Tk100-105, and sprouting onions between Tk50-60 per kg.

Meanwhile, the price of new potatoes has dropped by Tk20 per kg in the past week. New potatoes are now priced at Tk90-100 per kg, while old potatoes are selling for Tk75 per kg.

 Winter vegetable supply up, but prices stay high

While the supply of winter vegetables in the capital's kitchen markets has improved, prices remain higher than last year.

Abdul Awal, a vegetable seller at Karwan Bazar, said, "Due to floods in nearly 13 districts and widespread rainfall, many vegetable fields have been destroyed. As a result, farmers have had to start new vegetable fields in different areas." 

He added, "Last year, I bought a cauliflower of the same size for Tk20 each, but now I have to pay Tk30."

Current vegetable prices include eggplants at Tk60-80 per kg, bitter gourds at Tk70-90, okra at Tk60, yardlong beans at Tk70, radishes at Tk40, cauliflower at Tk40-50 per piece, cabbage at Tk40-45 per piece, and bottle gourds at Tk70-90 per piece, depending on quality.