Soybean oil crisis in market

An artificial crisis has been created in the edible oil market through halting the supply of bottled soybean oil, traders have alleged.

Several traders in Karwan Bazar, the biggest wholesale market in the capital, said that the supply of bottled soybean oil of several companies including Rupchanda and Teer has stopped in the market. As a result, they cannot sell soybean oil at their stores.

On Friday afternoon, the stores of the dealers of Rupchanda and Teer soybean oil were closed in Karwan Bazar.

Ali Hossain, a retailer in the market, said supply of only Pushti soybean oil is continuing while supply of other companies has stopped.

Wholesale flour seller Md Ibrahim's shop is right beside the store of Rupchanda oil dealer. He said, "The oil shop did not open today."

However, soybean oil of almost all brands including Teer and Rupchanda is still available in the wholesale market. But, the sellers said, the reserve is less than the demand of the buyers.

Mohammad Mohiuddin, owner of Bengal Oil in Karwan Bazaar, said, "There is a crisis of soybean oil in the market. I am only selling mustard oil only at a price of Tk230 per litre."

Md Ismail, manager at Agora Super Shop at Moghbazar in the capital, said, "We are selling a maximum of five litres of oil to one buyer due to low oil reserves. The companies have cut oil supplies by 50%."

Traders in Karwan Bazar alleged importers are deliberately creating a crisis to raise oil prices. If the price goes up, the supply in the market will be fine again, they said.

Meanwhile, although soybean oil is being sold at Tk168 per litre, as per the price tag on the bottle, at Karwan Bazar and super shops, retailers at different alleys are charging Tk15-Tk20 more from the buyers.

Mohammad Jasim, a buyer at Karwan Bazar, said that not only oil but also the prices of daily necessities are increasing every week. "Today, I bought five litres of oil for Tk800. Nobody cares about the common people."

Most of the shops at Merul Badda and Rampura areas in the capital do not have one and two-litre bottle of oil. They are selling five-litre bottle only.

Biswajit Saha, general manager of City Group that produces Teer soybean oil, told TBS, "We have enough stock of edible oil. Imports and supplies are not stopped. Even today, we have released 25 tonnes of oil to the market. Some people have bought oil and stored it as the price may go up in the future."

Meanwhile, the Bangladesh Vegetable Oil Refiners and Vanaspati Manufacturers Association has announced to increase soybean oil price by Tk12 per litre from Tk168, citing rising prices in the international market.

After an inter-ministerial meeting over prices of essentials on Wednesday, Commerce Minister Tipu Munshi said, "The proposal by marketing companies to increase soybean oil price by Tk12 per litre would not be approved now."

The commerce minister on that day called for halting the sale of loose soybean and palm oils to control prices. As a result, low-income people are in trouble as traders have stopped selling loose soybean oil in the market.

14 agencies to tackle artificial crisis of edible oil

Teams of 14 government agencies will carry out separate drives to control the increasing prices of daily essentials before the Ramadan.

They will look into the causes of the crisis in oil supply, conducting drives at wholesale and retail stores. At the same time, the reasons behind the reduction in oil supply by the companies will be reviewed.