The government has been forewarned of a volatile edible oil market during the month of Ramadan.
An intelligence agency report issued the warning just weeks before the holy month begins.
The report predicted a section of unscrupulous traders might increase the prices of edible oil along with other essential products through market manipulation ahead of the holy month of fasting.
Manipulators, to be acting as a syndicate, will slow down production and import process, the report added.
But a commerce ministry official ruled out the possibility of the price hike of essentials as there are sufficient stock of the products.
“We have ensured sound supply and stock of all those items. Although opening of letters of credit for importing the edible oil in last three months is not sufficient enough during Ramadan,’’ he said.
But the commerce ministry largely depends on the report of the intelligence agencies to learn about the market due to lack of different market assessment mechanism, according to him.
“There are monitoring teams for essential commodity market but they are not enough,” he said.
The report said the low import of the edible oil could push sudden price hike of the essential ahead of Ramadan.
Intelligence report was submitted to the commerce secretary last week, which recommended taking necessary measures to prevent the hike.
According to the intelligence agency’s report, the businessmen of the Khatunganj of Chittagong want to make up the losses which they had incurred in chickpea business last year.
Regarding possible price hike of the edible oil, the report noted that the Chittagong-based company S Alam Group has opened less number of letters of credit this year compared to demand.
The Group maintained a good supply of edible oil last year, which might result in the shortage of the edible oil during Ramadan.
Edible oil might face another crisis in the local market as the country’s largest edible refinery Shah Amanat refinery still remains idle for long time.
The intelligence agency report also identified 15 unscrupulous onion traders and shoppers across the country, who allegedly smuggled currency through under-invoicing in the name of import of onion from India.
The 15 onion traders are Bogra Banjo Bhandar, Kashi enterprise of Satkhira, Mamoni enterprise, Satkhira, Khan traders, Dinapur, M/S Rosni International, Chapainawabganj, Ful Mahammad, Rajshahi, Priyo enterprise Rajshahi, Miss Firoza enterprise, Satkhira, Miss Nizara Trading, Satkhira, Ms Ghosh enterprise, Raju Thakur, Satkhria, Haque and Sons enterprise, Satkhria, M/S Khan Traders Dinapur, M/S Babu Enterprise Dinapur, and M/S Dhrubo Faria Traders, Joypurhat.
The intelligence agency suggested eleven-point recommendations including encouraging commercial banks to continue loan facilities to the essential commodity importers.
The commerce ministry will warn the unscrupulous businessmen in Khatunganj to control essential items before Ramadan.
Trading Corporation of Bangladesh (TCB) will sell imported essential items with small amount of profit as it has planned to import essentials throughout the year, the report said.
The report suggested that the demand order or sale order of edible oil will be completed within 15 days and the government will take legal initiative against the people who are involved in the extortion in transports.
“There is no possibility of the price hike of edible oil during Ramadan as supply is adequate. We have discussed it in two meetings,” Commerce Secretary Mahbub Ahmed told the Dhaka Tribune.
Source: Dhaka Tribune
