The edible oil market has once again become volatile. Soybean and palm oil prices have been rising uncontrollably since Indonesia, the world’s largest exporter of palm oil, announced on Saturday that it would suspend oil exports. In the last two days, the price of open soybean oil and palm oil has gone up by Rs 15 to Rs 18 per liter in the retail market.
Note that the soybean and palm oil market has been booming for the last two years. In order to reduce the price in the market of the country, the value added tax (VAT) of edible oil has been reduced at different stages recently. This reduces the price a bit. But now the price of this essential product is rising uncontrollably again.
Indonesia has cut off palm oil exports, prompting a class of traders to cut soybean and palm oil supplies in a bid to boost profits. They are trying to destabilize the edible oil market ahead of Eid. According to sources, this cycle is increasing the price of soybean and palm oil in the market without the permission of the Ministry of Commerce. On Monday, open soybean oil was sold at Tk 165 to 162 per liter and open palm oil at Tk 158 to 163 per liter in the retail market of the capital. Which was sold two days ago at 150 to 155 rupees and 140 to 148 rupees respectively.
The edible oil market is volatile again
However, the government has fixed the price of open soybean oil at Rs 136 per liter and palm oil at Rs 130 per liter for retail sale. The Trading Corporation of Bangladesh (TCB), the government’s marketing arm, said in a report on its market price yesterday that soybean oil and palm oil prices had risen. According to the government, open soybean was sold at Tk 120 to 123 per liter and open palm oil at Tk 106 to 110 per liter in the retail market at this time last year.
Currently, the price of edible oil is also increasing in the Indonesian market. As a result, the country has taken steps to reduce prices by increasing supply to their own markets. However, the announcement to stop exports last Saturday will be effective from Thursday this week. Now the oil that is in the pipeline for export will only be exported. This decision will remain in force until further notice. Indonesia exports 39 percent of the world’s palm oil demand. Then there is Malaysia. They export 26 percent. Apart from this, Australia, Brazil, China and Argentina produce and export palm oil in limited quantities
Why are prices rising in the country’s market right now?
Meanwhile, with the announcement of the suspension of Indonesian exports, why the price of soybean and palm oil is rising in the country’s market – the question of consumers? Faridul Alam, who came to the market in Kawranbazar of the capital yesterday, said that the oil that is being sold in the market at present is to be imported earlier. This oil is now in the market of the country. Then why the price will increase?
In this context, the President of the Bangladesh Wholesale Edible Oil Traders Association. Golam Mawla said Indonesia is a major exporter of palm oil. So stopping their exports will have a global impact. Meanwhile, the price of edible oil has gone up in the market. He said prices could rise further in the future. However, the National Consumer Protection Department, Dhaka District Office. “We will conduct operations in the edible oil market,” Abdul Jabbar Mandal told Ittefaq yesterday. Legal action will be taken against anyone who manipulates the price of oil. Any kind of anarchy with oil will not be accepted.
According to Commerce Ministry sources, the country has a demand of 2.4 million tonnes of edible oil every year. Of this, 2 million tons is used as food. The remaining 4 lakh tons are used in the industrial sector. And 8 percent of the total demand is met by palm oil. Palm oil prices are rising in the world market after Indonesia announced the closure of exports. Palm oil is currently being sold at 1,450 per tonne in the international market, up from a year ago. And a year ago, the price of soybean was হাজার 1,010 per ton. It is currently selling for ৯ 1,900.