Bahaddarhat, one of the largest kitchen markets in Chattogram city, has at least 30 shops selling soybean oil, both wholesale and retail. During a visit on Saturday, only one shop was found with soybean oil in stock – just two five-liter bottles.
The situation is quite similar in Dhaka as consumers now hardly find bottled soybean oil at the groceries that usually sell it. The large groceries used to charge a bit less than the maximum retail price (MRP), but the price has now surpassed the fixed rate.
Meanwhile, traders raised the price of loose soybean oil, capitalising on the increased demand amid the scarcity of bottled oil. In some cases, stores that have bottled oil in their stock are forcing consumers to purchase some additional commodities, regardless of the demand.
Mahfuzur Rahman went to the Mohammadia housing kitchen market in the capital’s Mohammadpur area on Saturday. Sharing his experience, he told Prothom Alo that the shopkeeper he approached for a bottle of soybean oil set a condition of buying a 3-kg packet of fragrant rice of the same brand, along with the oil. He, however, refrained from purchasing oil.
Edible oil is a staple necessity, with most urban consumers preferring bottled soybean oil. According to the Bangladesh Trade and Tariff Commission (BTTC), the annual edible oil demand is about 2.2 million metric tonnes, largely met through imports. Local industries import crude edible oil and seeds, refine them, and supply them to the market.
According to the National Board of Revenue (NBR) data, a total of 232,000 tonnes of crude soybean oil were unloaded at the Chattogram port between November and January, marking a 69 per cent rise from the previous year’s corresponding period.
Soybean seed imports have also surged, reaching a record 300,000 tonnes in January, which is higher than the amount imported throughout the past one year.
Regarding the crisis in the market, Biswajit Saha, director of City Group, said, “We are supplying oil to the market regularly and keeping intelligence agencies and monitoring cells informed. However, I cannot say why there is still a supply crisis.”
Taslim Shahriar, deputy general manager of another key supplier Meghna Group of Industries (MGI), said, “The demand for soybean oil is supposed to decline at the end of winter. There is no supply shortage.”
The edible oil market is dominated by eight importers, refiners, and distributors. It was learned that not all are maintaining a steady supply. It is creating a crisis in the market and the unscrupulous ones are cashing on it for their vested benefit.
A commerce ministry source said the tariff commission requested supply data from companies and is likely to hold a meeting with them soon. Abdur Rahim Khan, additional secretary of the ministry, told Prothom Alo on Saturday that they are aware of the bottled oil shortage. “A meeting has been called on Sunday and the situation will be discussed there.”
The crisis of bottled-oil has persisted for nearly four months, and it intensified in November. In response, the government reduced import duties and taxes on soybean oil. As the crisis continued, the price was raised by Tk 8 per liter on 9 December, bringing the cost of bottled soybean oil to Tk 175 per liter.
While visiting kitchen markets at Kazipara, Shewrapar, Mohammadpur, Hatirpul in Dhaka, and Bahaddarhat and Khatungaj in Chattogram on Saturday, most of the groceries were found with no bottled soybean oil.
Humayun Kabir, a trader at Khokon General Store in Mohammadpur Krishi Market, said he managed to buy only five 5-liter bottles from a wholesaler. Despite an MRP of Tk 850, he had to buy them at Tk 860 and sell them for Tk 865–870.
“Now, I only sell soybean oil to acquaintances at a higher price. Otherwise, the higher rate leads to unnecessary altercations with customers,” he added.
The scenario is in stark contrast in the global soybean market. According to the World Bank, the average global price of soybean oil was $1,061 per tonne in January, which is $100 less than in November.
But the price is rising in the local market. Loose soybean oil prices have risen by Tk 6–7 per liter in a week, in the absence of bottled oil. According to the Trading Corporation of Bangladesh (TCB), loose soybean oil now costs Tk 180–182 per liter.
Abul Hashem, a wholesaler at Moulvibazar in the capital, said, “Companies have assured us that supply will normalise within a month. However, if the crisis is not resolved before Ramadan, the situation will become unmanageable.”
