In order to prevent the price of edible oil from increasing, the government gave a 5 percent VAT discount at the import level. Traders also promised not to raise prices. But they did not speak. They have reduced the supply of open oil in the market without increasing the price by announcing. The price has also increased. A liter of soybean has increased by 20 rupees in a month. In this situation, the government has decided to give another 5 percent VAT discount.
The largest wholesale market of consumer goods in the country saw a record price of edible oil in Khatunganj, Chittagong. The price of open oil has increased up to Tk 1,300 per maund. And it goes up to Tk 21-35 per kg. Chaktai-Khatunganj General Secretary of Artaddar General Traders Welfare Association. Mohiuddin said that the international market for edible oil is high. There is also supply shortage in Khatunganj market. LCO cannot be done as per demand due to various complications. As a result, the price is increased.
However, mill owners claim that their supply is normal as before. The price has not been increased. They say that if there is a trend of price increase in the international market, sometimes the middlemen keep oil stockpiled in the hope of extra profit. Apart from this, there is also the danger of smuggling. 11-12 brand companies including TK Group, City Group, S Alam Group, Meghna Group, Bashundhara Multi Food Products, Smile Food Products, Sena Edible Oil Industries, Delta Agro Food Industries, Abul Khair control the edible oil market in the country. However, 4-5 companies import directly out of this.
Shafiul Atahar Taslim, director (brand) of TK Group, one of the largest importers and suppliers of edible oil in the country, told Ajker newspaper, “There has been no shortage of oil supply or price increase at our mill level. We were informed about the shortage of supply of edible oil today (yesterday) during the meeting of the Ministry. There we showed our delivery papers.'
Shafiul Atahar Taslim said, 'When the price of a product increases a lot in the international market but it is not adjusted in the domestic market, then a class of middlemen wants to take advantage of it. They stockpile products because they know the price of these products will rise soon. The same can happen with oil. Therefore, our advice is to meet every month if the international market increases, increase it in the country and decrease it if it decreases. Then the supply in the market will be fine.'
Meanwhile, wholesalers and retailers complained that the refineries simultaneously cut supply to raise prices. They are not getting oil supply as per demand. Many dealers reported not getting supply of oil for 10-11 days.
Ziauddin, a dealer of a brand company in the capital's Shantinagar area, told Ajker Patrika, 'Delivery order (delivery order) of oil is not being cut now. The supply of oil is not available as per the demand. By depositing the money in the company account, the companies are delivering the products on time when they want. It is sometimes after 10-11 days. I last received the supply of 1 and 2 liter oil bottles yesterday. Before that, I received it on November 3. Such a situation has been created for the past one month.'
Apart from this, the companies have also increased the price of oil, said the supplier. He said, 'The retail price of bottled 5 liters (price per case) is Tk 818, and the retail price is Tk 803. But earlier we could supply to the retailer at Rs 790 as well. But now I can't because the companies have increased the prices.'
Mehdi Hasan Rajiv, a dealer in Paltan area of another company, said the same thing. He said, almost all companies are in the same situation. Oil supplies have dwindled. Oil is not available as required from brand companies.
According to Trading Corporation of Bangladesh (TCB) data, the retail price of soybean oil has increased by Tk 20 per liter in the last one month since VAT exemption was given to prevent the price of oil from increasing. Out of this, it has increased by Rs. 7 in the last one week. Many traders said that such a price increase has never happened before in one month. Currently open soybean oil is selling at Tk 170-172 per litre, which was Tk 163-165 a week ago. According to TCB, one liter of soybean oil could be bought for Tk 152-156 a month ago. Apart from this, open Palm Super is now selling at Tk 164-165 per litre, which was Tk 154-156 a week ago. And a month ago Palm Super was sold at Tk 147-150 a liter. Accordingly, the price of this oil increased by Tk 17 per liter in one month after VAT exemption.
Traders of capital's wholesale Moulvibazar say that oil is not available as per demand. Some are getting oil SO once in 3 days, some once a week. Apart from this, the companies keep the prices very high.
The wholesale traders of Moulvibazar said that they are buying soyabean oil (167.11 liters) at Tk 6900 per maund from Millgate till Wednesday. And palm oil was sold at 6500-6600 rupees. However, the price of oil per maund has decreased to Tk 150 yesterday.
Abul Hashem, General Secretary of Moulvibazar Wholesale Edible Oil Traders Association, told Ajker Patrika that when companies plan to raise prices, they create an artificial crisis by reducing supply. It happened this time too. They are reducing supply and gradually raising prices.
Mostafizur Rahman, shopkeeper of Segunbagicha Bazar, said, 'I have received the supply of Bashundhara oil today after a week. Not being able to supply oil as required by known customers is very embarrassing. Apart from this, the profit has also been reduced by the suppliers. If you sell 5 liters of oil, there is a profit of 8-10 taka. If there is a profit of 10 rupees on 800 rupees, it is difficult for retailers like us to do business.'
According to the latest fixed price of edible oil on April 18, the maximum retail price of open soybean oil is Tk 147 per liter and bottled soybean oil is Tk 167 per liter. Apart from this, five liter bottle of soybean oil was increased from Tk 800 to Tk 818 at that time. Palm Super is a maximum of Tk 135 per liter.
According to that, the traders are keeping the price of open soybean oil extra by 23 taka per liter and palm oil extra by 29 taka. However, mill owners say that they have kept the supply of oil normal. At the same time, the price has not been increased.
The Ministry of Commerce held a meeting with the mill owners yesterday in this regard. There they demanded price adjustment every month in line with the international market. But in the end, the trade advisor proposed another 5 percent VAT discount at the import level on the condition that the traders do not increase the prices. Mill owners also accepted this proposal.
