Soybean oil prices down slightly

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The price of bottled soybean oil fell by Tk6 per liter on Sunday while the price per liter of bulk soybean oil fell by Tk5.

The new maximum price for bottled soybean oil per liter was set at 199 taka, registering a drop of 2.9%, compared to a 26% drop in the price of crude soybean oil in the international market while throughout the month of May.

Bangladesh Vegetable Oil Refiners and Vanaspati Manufacturers Association made the new announcement in a circular on Sunday, 18 days after raising the price of packaged soybean oil from Tk7 per liter to Tk205 on 9 June.

On the day, the association also revised down the price of five liter packaged soybeans to Tk 980 and one liter bulk soybean oil to Tk 180.

The announcement came hours after Commerce Secretary Tapan Kanti Ghosh said edible oil prices would fall in the local market alongside their falling prices in the international market.

He said this during a press briefing at the secretariat on Sunday morning.

“The downward revision in edible oil prices should take place within a day or two,” he told reporters.

Tapan said the revised edible oil prices may not be commensurate with the item’s lower prices in the international market due to the devaluation of the local currency against the US dollar.

On Sunday, the interbank rate for the dollar was at 92.95 Tk against 85.07 Tk a year ago.

The Commerce Secretary said they have already taken steps to revise edible oil prices downward following its price drop in the world market.

The tariff commission checks prices on the world market and also consults with local refiners, the secretary added.

The commission reportedly found crude soybean oil selling for $1,464 a ton in Argentina from $1,970 a ton in just a month.

A one liter bottle of soybean oil was selling for Tk 205 while that of a five liter container has been ranging between Tk 990 and Tk 997 locally since June 17 when the government allowed local refiners to adjust to rising item prices. .

There had been volatility in soybean oil prices in the local market since last year. Prices increased further due to the war between Russia and Ukraine from February 24.

Consumers had been paying Tk 180 for a liter of soybeans since March 1. The edible oil, however, was selling for around 150 taka the previous month.

Before the Eid holiday in May, the edible oil disappeared from the local market.

The Bangladesh Consumers Association called it an act of unscrupulous traders who wanted to make more profit under the lax oversight of government agencies.

The country’s inflation topped 7% in May – for the first time in the past decade – due to spiraling commodity prices, including soybean oil.

The government removed customs duties and value added tax on oilseed imports to control spiraling edible oil prices in the local market.

The country is heavily dependent on the import of oilseeds to meet almost 95% of the annual demand which accounts for around 30 lakh tons of edible oil.

The country’s traditional oilseed, mustard, covers less than 10% of the total edible oil requirement.

Only a few private sector crushers import oilseeds – mainly soybeans and palms – to produce edible oil.

The county imported $1.5 trillion in edible oilseeds in the first seven months of the current fiscal year between July and January, compared to $810 million in the corresponding period of the fiscal year. precedent, according to the Bangladesh Bank.

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