High price edible oil to come after 1.5-month

But price increased now

Chittagong Bureau : The government is struggling to prevent the rise in prices in the daily commodity market. On top of that, the price of edible oil has increased once again on the pretext of increasing the booking rate in the international market. In Khatunganj, the second largest wholesale market of consumer goods in the country, the price of edible oil has increased by Tk 50-130 in just one day. Traders claim that the increase in the booking rate has had an impact on the international market, but the organizations working on consumer rights say that despite the increase in the booking rate, it will take at least one and a half to two months for the higher priced oil to come to the market. Therefore, it is unreasonable to increase the price now.
According to Chittagong Customs sources, 3 lakh 43 thousand 937 tons of crude soybeans and 10 lakh 55 thousand 493 tons of crude palm oil have been cleared through Chittagong port from July 1, 2023 to February 28, 2024.
On the other hand, according to Chittagong port sources, three ships are unloading soybeans at the outer anchorage of Chittagong port. Among them, ‘Meghna Crown’ has 59,106 tons, ‘Star Crimson’ has 51,785 tons and ‘Yasha Jupiter’ has 48,806 tons of soybeans. Talking to the traders of Khatunganj, it is known that the price of edible oil has increased from Tk 50 per maund to Tk 130 within a day on Thursday. However, there is a variation in rates for Chittagong and Dhaka based mills. Traders said that the price of edible oil in Dhaka-based mills has increased.
In the market of Chittagong there are SALAM, City, Abul Khair Group as well as Mir Group edible oils. On the other hand, Dhaka-based Meghna, City, TK and Bashundhara Group have edible oils. Among the edible oils in Khatunganj, mainly palm oil is traded more.
According to traders, palm oil was sold at Tk 4,860 per maund in Khatunganj on Thursday. On Wednesday, the oil price was Tk 4,810. Chittagong city palm oil was sold at Tk 4,920. Which was Tk 4,860 on Wednesday.
Dhaka-based Abul Khair’s butterfly palm oil was sold at Tk 4900. A day ago, the price of butterfly palm oil was Tk 4850. On Thursday Meghna Group’s fresh brand palm oil was sold at Tk 5,100. Meghna palm oil price was Tk 4,880 on Wednesday. Dhaka-based City Group’s palm oil was sold at Tk 4,890 on Thursday. Even a day ago, the price of this oil was Tk 50 less per maund.
On the other hand, Dhaka-based TK Group’s Super Oil was sold at Tk 5,080 on Thursday. On Wednesday, the oil price was Tk 5,050. Similarly, Meghna Group’s Super Oil was sold at Tk 5,100 on Thursday. A day ago, the price of this oil was Tk 5,010.
A businessman from Khatunganj, on condition of anonymity, said, I bought Mir Pam for Tk 4,815 on Wednesday morning, S Alam for Tk 4,805. On Thursday, the price of both increased by Tk 50.
The owner of Khatunganj edible oil trader M/s NR Trading. Ilyach told that the price of palm oil in Khatunganj has increased by Tk 50-60 per maund on Thursday due to the increase in the booking rate in the international market. Dhaka-centric oil prices have increased. He said that if the booking rate in the international market does not decrease, the price of edible oil in the Khatunganj market is not likely to decrease.
Shahed Ul Alam, director of RM Enterprises, a major oil and sugar trader in Khatunganj, told that the price of palm oil has increased slightly in the market. On Thursday, palm oil was sold at Tk 4,860 per maund.
He said that the booking rate of soybeans in the international market has increased by $100 per ton in two days. The international market rate on Thursday was $1,020. A month ago, it was at $860.
Talking to the traders of Khatunganj, it is known that despite the dollar crisis, more products than the demand have been imported in the country ahead of Ramadan. These imported products have reached retail level shops. Meanwhile, Bangladesh Bank has provided an opportunity to import the products that are in high demand during Ramadan through 90-day suppliers or buyers credit. As a result, the old importers now have the opportunity to import the rest of the products. Importers will get this special benefit till March 31 this year.
Besides, the National Board of Revenue (NBR) issued a notification on February 8 to reduce the duty on rice, oil, sugar and dates in view of Ramadan. As per the notification announced, value added tax (VAT) at the production and trading level of refined soybean and palm oil has been completely withdrawn. In this, no VAT has to be paid till April 15 at the production and trading level of refined soybean and palm oil in the country. Apart from this, the 15 percent import level VAT has been reduced to 10 percent in the import of refined and unrefined soybean oil and palm oil from abroad. This means, 5 percent VAT has been reduced at the import level of soybeans and palm oil. Despite this notification, the price of edible oil has not decreased in the market. Later the government fixed the price of soybean oil. As per the fixed price, bottled soybeans are being sold at the retail level at Tk 163 per litre.
General secretary of ChaktaiKhatunganjArtaddar General Traders Welfare Association said about the price increase on the pretext of booking rate. Mohiuddin told that it is true that the booking rate of edible oil has increased in the international market. But even if the rate goes up, it may take two months for that oil to hit the market after opening the LC at the increased rate.
Now, after getting the news, why the price has been increased, is the question of the businessman.
Chittagong divisional president of consumer association Consumer Association of Bangladesh (CAB) SM Najer Hossain told that when the prices increase in the international market, the businessmen of our country increase the price of the products after hearing the news. But they don’t do that when it comes to international markets. Government institutions are basically business friendly, they are not consumer friendly. That is why traders increase the price of goods when they feel like it. Consumers have to follow the wishes of traders.