Retailers in Dhaka have voiced growing concerns over the artificial scarcity of bottled soybean oil, accusing major companies of deliberately reducing supplies while compelling them to purchase additional products such as pilaf rice, lentils, flour, and ghee as a condition for receiving oil.
Emran Hossain, proprietor of Al Baraka Store at Mohammadpur’s Town Hall Market, stated, "For days, companies have withheld soybean oil. Occasionally, City Group provides a carton of bottled oil but insists on bundling it with 10kg of pilaf rice. Refusal results in no oil supply."
Similar grievances echo across various markets in the capital.
With Ramadan approaching, retailers allege that companies like City Group and TK Group are intentionally limiting oil distribution.
Loose soybean oil is rarely available below Tk175 per litre in Dhaka, while prices have crossed Tk200 per litre in other divisions, including Khulna.
Investigations in several markets confirmed these trends through discussions with both buyers and sellers.
Bangladesh’s annual edible oil demand stands at 20 lakh tonnes, averaging 1.5 lakh tonnes monthly, or approximately 5,000 tonnes daily. During Ramadan, demand doubles to 10,000 tonnes daily.
Despite City Group alone producing over 3,000 tonnes per day, alongside outputs from Meghna and TK Group, shortages persist.
Blaming high international prices, oil refiners lobbied the government, leading to a price hike on 9 December: bottled soybean oil rose by Tk8 to Tk175 per litre, loose oil to Tk167, and palm oil to Tk157 per litre.
Commerce Adviser Sheikh Bashir Uddin optimistically remarked, "We’ve set new prices after discussions with suppliers. We expect the shortage to end."
Yet, two months on, the crisis remains unabated. While 5-litre containers are available, 1- and 2-litre bottles are scarce, with wholesalers unwilling to sell oil without bundling additional goods.
Retailer Amir Hossain from Hatirpool Market noted, "We haven’t received oil supplies for days. Companies simply don’t deliver."
Jahangir Alam of Laxmipur Store in Karwan Bazar added, "Even after price hikes, supplies are irregular. Wholesalers force us to buy flour with oil. A 5-litre bottle costs Tk850, almost matching its Tk852 MRP, leaving negligible profit margins."
Masud Rana of Tasmin Enterprise, a City Group dealer, acknowledged, "Mills have reduced oil supply by nearly 40%. We, too, are compelled to include pilaf rice with oil cartons, but we don’t force anyone. The company has also reduced commissions by Tk1 per litre, restricting our pricing flexibility."
Imtiaz of Mayer Doa Store lamented, "There’s practically no oil. Only Meghna Group’s 2-litre 'Fresh' brand is available, with no 1- or 5-litre options."
When contacted, City Group Director Bishwajit Saha claimed, "There is no shortage. We produce over 3,000 tonnes daily, monitored by intelligence agencies. Just yesterday, we produced 3,200 tonnes. Other companies like Meghna have similar capacities. The government alone can explain the market shortages."
Addressing the higher price of City Group’s "Teer Canola" oil at Tk190 per litre, he cited, "This premium product, derived from Canadian canola feed, justifies the additional Tk15."
Dismissing allegations of forced bundling, he remarked, "That’s nonsense. People buy what they need."
Mostafa Haider, President of the Bangladesh Vegetable Oil Refiners and Vanaspati Manufacturers Association and MD of TK Group, stated, "We impose no conditions on oil sales and maintain a regular supply. I’m unaware of other companies’ practices. We are ramping up supplies for Ramadan and foresee no shortages."
Price surge in Chattogram
Chattogram faces acute shortages of bottled soybean oil amid supply constraints, with prices soaring unchecked in Khatunganj.
Loose soybean oil now sells at Tk175 per litre, up Tk10 from a week ago.
Despite assurances, mill owners are reportedly plotting further price hikes.
Nasir Uddin, GM of Meghna Group, claimed, "Our bottled oil supply is stable. We cannot comment on others’ operations or market shortages."
Visits to Kazi Deuri, Agrabad, Halishahar, and Oxygen areas revealed scarcity in retail shops, with loose oil priced at Tk180 per litre.
Mohammad Mohiuddin, General Secretary of Chaktai-Khatunganj Wholesalers’ Association, noted, "Imports have increased, yet market supply remains tight, driving prices up."
Rajshahi faces acute shortage
In Rajshahi, soybean oil prices have surged over Tk20 per litre within a month, yet bottled oil remains scarce, straining both consumers and retailers.
While consumers blame syndicates, retailers attribute the situation to dealers and companies manipulating supplies to justify price hikes.
Surveys at Saheb Bazar and Binodpur Bazar confirmed these trends, with limited availability of bottles under 5 litres and persistent price escalations.
