Edible oil importers and marketers want to raise prices on the domestic market and have proposed an increase of Tk 10 a litre to the commerce ministry. The companies say prices need to be adjusted in line with the world market, and that without an increase they cannot keep importing at a continuous loss.

No final decision has been made. The Bangladesh Vegetable Oil Refiners and Vanaspati Manufacturers Association first proposed the increase on 11 July. A meeting at the commerce ministry last week ended without agreement, and another is due this week, when a decision on the price may come, ministry sources said.

The importers and marketers say rising international prices, higher transport costs and other factors mean local prices must be adjusted. They say they are losing money at current prices.

The traders have proposed raising the retail price of bottled soybean oil by Tk 10 to Tk 209 a litre. They also want the 5-litre bottle, raised by Tk 10 a litre, priced at Tk 1,015, and loose soybean oil at Tk 188 a litre. Loose palm oil would rise to Tk 183 a litre.

The ministry says a range of tax cuts were given on essential goods in the 2026-27 budget and must be taken into account before any increase. About three months ago, on 29 April, the ministry allowed soybean oil prices to rise by Tk 4 a litre.

A commerce ministry official, speaking on condition of anonymity, told Jago News that officials sat with the traders after the association's proposal, but only a few representatives of the large companies attended, so no settlement was possible. It was decided that another meeting would be held to reach a decision.

The ministry has also asked the Bangladesh Trade and Tariff Commission (BTTC) to analyse what the price should be in line with the international market.

BTTC data show that edible oil prices have risen on the world market too. Crude soybean oil is now selling at $1,191 a tonne, up from $1,169 a month ago and $1,078 a year ago. Crude palm oil is selling at $1,162 a tonne, against $1,145 a month ago and $1,025 a year ago.

Even so, the commerce ministry believes there is a gap between the world price rise and the prices the companies have proposed.

The traders claim that the rise in international prices and in transport costs has added Tk 18 to Tk 20 to the cost of each litre of bottled soybean oil.

Md Shafiul Athar Taslim, director (finance and operations) of TK Group, told Jago News: "All our costs have gone up at the import stage. Transport costs have also risen with the increase in fuel prices. For these reasons we are having to pay Tk 18 to Tk 20 a litre more than the current market price."

He said one meeting had been held with the commerce ministry and another is due. "If the losses continue, it will not be possible to keep importing like this," he said.

Source: Jagonews24. First published in Bengali on The Agro News.