Unprocessed palm oil is being sold at Tk30 higher than the revised retail price, due to increasing wholesale prices
In recent weeks, wholesale traders in Bangladesh have accused major trading companies of intentionally reducing palm oil supply, causing an artificial shortage and spiking wholesale prices by Tk150 to Tk300 per maund. This move has led to a ripple effect across the entire edible oil market.
The upward trend in palm oil prices is particularly concerning, as it affects the affordability of essential cooking oil for many Bangladeshi households. In an attempt to alleviate some of the pressure, the government reduced the retail price of loose palm oil from Tk169 to Tk150 per litre on 12 August.
However, the price at the retail level in Chattogram's Khatunganj remains high, with consumers paying as much as Tk180 per litre. In fact, the price of palm oil at the retail level is Tk30 higher than the government-fixed price in Chattogram's Khatunganj. Over the past week, soybean oil prices in Khatunganj have also increased by Tk100 per maund, reaching Tk6,500.
The president of the Bangladesh Wholesale Edible Oil Traders' Association, Golam Mowla, stated that edible oil prices have remained high in the country for some time. Md Abzur Razzaque, additional secretary at the commerce ministry, commented that the government has determined oil prices based on overall market conditions, and action will be taken if there are any deviations in consultation with the Tariff Commission.
An analysis of global booking prices shows that in July, the price of crude palm oil increased to $975 per tonne, a rise from $935 in June and $908 in May. This increase in international prices, coupled with reduced supply, has likely contributed to the price hike in Bangladesh.
Despite the ongoing investigation, the search results do not contain information about when and by whom deliveries of palm oil and soybean oil to Bangladesh were reduced, leading to an artificial shortage and price increase.
As the situation continues to develop, it is crucial for both the government and the trading companies to ensure a stable and affordable supply of edible oils for the benefit of the Bangladeshi people.
Read also:
- Understanding Hemorrhagic Gastroenteritis: Key Facts
- Stopping Osteoporosis Treatment: Timeline Considerations
- Expanded Community Health Involvement by CK Birla Hospitals, Jaipur, Maintained Through Consistent Outreach Programs Across Rajasthan
- Abdominal Fat Accumulation: Causes and Strategies for Reduction
