Edible oil prices are set in line with the international market and after calculating domestic production and processing costs, Commerce Minister Khandaker Abdul Muktadir has said.

He said this while talking to journalists at Mohakhali in the capital on Thursday, 3 September.

Soybean oil is entirely import-dependent, the minister said, so any rise or fall in its price on the international market has a direct effect on the local market.

The commerce ministry has a set method for pricing imported oil, he said. The final price is fixed by adding shipping freight, unloading cost, insurance, refinery processing cost and wastage in transit to the FOB (free on board) price. Ordinary people and journalists can easily check this calculation against international indices, he said.

On the risk of losses for traders, the minister said the edible oil business in the country depends mainly on the private sector. If importers suffer continuous losses, the market could face a supply crisis. A reasonable balance must therefore be kept so that supply stays normal and entrepreneurs do not shut down their businesses because of losses.

On steps taken to control the market, he said about 78 lakh families a month receive essentials at subsidised prices through the Trading Corporation of Bangladesh (TCB). Goods are also sold from open trucks during the two Eids, and the Food Ministry runs a regular OMS (open market sale) programme.

The ministry is also constantly monitoring the opening of letters of credit (LCs) by traders and the import supply pipeline so that no artificial shortage is created, he said.

Asked about the sugar market, the minister said Meghna Group, the country's leading refinery, has enough raw sugar. Its production was temporarily disrupted by utility-related problems, but supply will soon return to normal, he said.

On the pay scale for government employees, the minister said their salaries had not been adjusted for 11 years and that this was a reasonable decision given inflation. The pay scale will be implemented in stages up to July next year rather than all at once, so there is no fear of disparity or a sudden rise in prices in the market, he said.

On aromatic rice exports, the minister said only 2,500 tonnes had been exported so far against the approvals given. Approvals for those who failed to export within the set time will be cancelled or reduced significantly, he said.

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