Government's trust in traders was misplaced, says Tipu Munshi amid cooking oil crisis

In the face of the ongoing turmoil in the cooking oil market, Commerce Minister Tipu Munshi has hit out at retailers and wholesalers for taking advantage of the government's "trust" by hoarding products in the hope of profiting from the crisis.

"Our shortcoming was in trusting the traders. It was a mistake," he told reporters on Monday.

"Even though the mill owners have kept their word, retailers and wholesalers have taken advantage of the situation.”

His remarks came against the backdrop of a crackdown on hoarders by the Directorate of National Consumer Rights Protection (DNCRP) in Dhaka and Chattogram.

On Monday, the directorate seized 15,000 litres of 'secretly stockpiled' soybean oil in a shop at Chattogram's Pahartali Market. Three shops have also been fined in Dhaka's Jatrabari for selling cooking oil above the stipulated price.

Soybean oil vanished from shelves ahead of Eid this month. Later, mill owners decided to raise the price of soybean oil by Tk 40 per litre to around Tk 200 with the consent of the Ministry of Commerce. But the move did little to improve the situation.

According to the DNCRP, traders have stockpiled 40,000 tonnes of soybean oil in the space of 10 days to make extra profits.

The authorities are already taking measures against cooking oil hoarders, said Tipu Munshi.

“Retail and wholesale traders who have taken advantage of this situation have already been identified. We are taking action against them. But the problem is they are over a million in number."

Although the commerce minister's confidence in traders has been shaken, he does not disagree with the decision to increase prices.

"The truth, no matter how difficult it is, must be accepted. Taking into account the situation in the international market, you have to accept the rise in the price of cooking oil. The current prices in neighbouring countries like India, Pakistan and Nepal should also be taken into consideration.”