Price of loose soybean oil has spiralled uncontrollably, rising by Tk10.72 per litre within just a week.
This alarming surge comes despite adequate imports and steady supply, with unscrupulous trading of delivery orders (DO) fuelling an artificial crisis, leaving ordinary consumers to bear the financial burden.
Last week, loose soybean oil was trading at Tk6,600 per maund (equivalent to 37.32 kg).
Presently, the price has surged to Tk7,000 per maund, marking an increase of Tk400 in just seven days.
Sources reveal that traders in Khatunganj, the main wholesale market for consumer goods in the country, are engaged in selling DO slips from major companies like TK Group, City Group, Meghna Group, and RM Enterprise.
These millers have reportedly reduced the supply of edible oil, exacerbating the price hike. While the initial DO slips are sold at Tk6,600 per maund, multiple handovers inflate the price to Tk7,000.
By the time the oil reaches consumers, retail prices have escalated further. Currently, loose soybean oil is being sold at Tk190 per litre in retail markets, up from Tk180 per litre last week.
In contrast, the palm oil market in Khatunganj has witnessed a significant price decline.
Over the past week, palm oil prices have dropped by Tk24.12 per litre, falling from Tk152.73 to Tk128.61 per litre.
On a per maund basis, palm oil prices have decreased by Tk900, now selling at Tk4,800 compared to Tk5,700 a week ago.
An edible oil trader from Khatunganj, speaking on condition of anonymity, stated, "Global booking rates for edible oils have declined, and there is no shortage in supply. However, millers are not maintaining proper distribution, causing loose soybean oil to disappear from the market. The illegal DO slip trading has exacerbated the price surge. Despite its illegality, the speculative nature of DO trading allows individuals to make lakhs of taka in a single day, prompting many to engage in this unscrupulous practice."
To control edible oil prices, the National Board of Revenue (NBR) waived the 15% VAT on such products in October last year.
Additionally, VAT on soybean and palm oil imports was reduced from 15% to 5%.
Despite these measures and declining global booking rates—with crude soybean oil prices dropping from USD 1,145 to USD 1,064 per tonne, and Malaysian palm oil now priced at 4,200 ringgit per tonne—local prices continue to soar.
Chattogram Port has seen a notable increase in soybean oil imports, with 74,449 tonnes more imported this fiscal year compared to last.
Between October and January of the 2023-24 fiscal year, 527,547 tonnes of soybean oil were imported, rising to 601,996 tonnes during the same period in 2024-25.
Mohammad Mohiuddin, general secretary of the Chaktai-Khatunganj Warehouse Traders' Welfare Association, commented, "Despite increased imports, market supply remains limited, driving up prices. Continuous imports are underway, and we anticipate prices will decrease once supply improves."
A visit to retail markets in Kazir Dewri, Agrabad, and Halishahar reveals a scarcity of bottled oils, though soybean oil in polybags is available at Tk175 per litre.
Palm oil supply is inconsistent, while loose soybean oil is sold at Tk190 per litre, reflecting the supply crunch.
SM Nazer Hossain, vice-president of the Consumers Association of Bangladesh (CAB), remarked, "DO slip trading is akin to gambling and lacks legal validity. Traders are manipulating prices under the guise of business. District administrations and consumer rights authorities must intervene. Eliminating illegal DO trading could significantly reduce commodity prices."
