Soybean oil stays out of Dhaka shops after mill owners raise prices

Mill owners announced a hike of as much as 32 percent in cooking oil prices on Thursday, but soybean oil stayed out of the markets in Dhaka on Friday after the kitchen ingredient ‘vanished’ before Eid-ul-Fitr.

At Karwan Bazar and other markets, the grocers were selling mustard and sunflower oils.

Jasim Uddin, a trader at Karwan Bazar, said he got 10 bottles of Pushti soybean oil from a dealer of TK Group, but Jasim and his employees distributed the products among themselves for their own need.

“Dealers of several companies have assured us of supplying some products on Saturday,” he said.

A manager of wholesaler Ankhi Store said they got 200 cartons of Pushti soybean oil on Friday. The shop sells 5,000 cartons of cooking oil daily in normal times, according to him.

Loose soybean oil is poured into bottles for measurement at a store in Karwan Bazar on Thursday, May 5, 2022. Photo: Asif Mahmud Ove

The continuing woes for consumers over the lack of availability of cooking oil deepened before Eid.

Although the companies running the mills imported 20 million litres of soybean oil before the festival, they said the new consignment cost them more than usual due to a hike in prices on the international market. Therefore, they needed time to consult the government before fixing new prices.

They said on Friday the supply was yet to get normal because it was a weekly holiday.

Bottled soybean oil now costs Tk 198 a litre, up from Tk 160, in line with the prices set by the Bangladesh Vegetable Oil Refiners and Vanaspati Manufacturers Association upon consultation with the government.

The price of five-litre bottles of soybean oil has been fixed at Tk 985. Unpacked soybean oil has been raised by Tk 40 to Tk 180 per litre.

“Supply was halted due to the Eid holiday. It will resume on Saturday in line with the new prices,” said Biswajit Saha, a director of City Group.

Mohammad Ali Bhutto, senior vice-president of Bangladesh Edible Oil Wholesalers Association’s Moulvibazar unit, however, said the situation will normalise after Sunday because they need to transfer money through banks to get the products.

Loose soybean oil is poured into bottles for measurement at a store in Karwan Bazar on Thursday, May 5, 2022. Photo: Asif Mahmud Ove

“I think the supply will be totally normal by the middle of next week,” he said.

He also said he hopes the prices will be cut as the global market has started to cool off.

Bipul Chandra Mistri, who supplies oil to several markets in Dhaka, said he would start knocking the mills on Saturday. Bipul got oil from the mills for the last time 12 days before Eid.

The Left Democratic Alliance condemned the hike in cooking oil prices in a statement, alleging the government allowed the businesses to increase the prices by creating a crisis through market manipulation. “It [oil price hike] will add to the people’s sufferings.”

It also said the businesses never cut the prices after raising them even when the global prices decrease.

It demanded the government take steps, such as subsidies, to keep the prices of commodities within the reach of the people.