Kitchen market still reels from soybean oil scarcity
Staff Reporter :
With almost all daily essentials showing a down trend in prices, the scarcity of soybean oil, one of the most staples in Bengali kitchen, has created instability in the market putting the people in hardship to maintain their daily life.
Though the incumbent interim government has taken various initiatives like reducing taxes and duties on soybean and palm oil to lower prices amid high inflation, it could not create any impact on controlling the market.
The blame game from importers and retailers is fueling the soybean oil price mounting a huge pressure on lower and lower middle income group people.
Oil importers and refiners said they have reduced imports apprehending losses as market prices were below what they would have to pay for purchases from abroad.
The end customers have not reaped any benefit from the duty cut at the rate of Tk 10 to Tk 11 per kilogramme (kg) of the edible oil, they said.
The government reduced VAT on imports of soybean and palm oil twice to 5 percent from 15 percent since October 17 this year.
It also fully exempted VAT at the production and trading stages of the highly import-based commodity. As a result of the reduction, import cost of the edible oil fell from around Tk 18 to Tk 7 per kg, according to stakeholders.
The reduction has prevented local market prices from fluctuating, importers and refiners said.
Meanwhile, retailers said the refiners were not supplying bottled oil to the market as per demand.
On the other hand, potato prices have dropped by Tk5 per kilogram within a week, reaching Tk70-75 per kilogram in the capital’s retail markets, while onion prices have dropped by Tk10-20 per kilogram due to increased imports from India.
Prices of other vegetables, fish and meat have been dropped slightly.
Market sources attributed the surge in potato prices to the end of the season, leading to reduced supply and higher storage costs.
Traders have also refrained from importing potatoes due to high costs.
In contrast, the steady supply of imported onions has contributed to the decline in their prices.
At several markets, including Shahjadpur, Rampura, Karwan Bazar and Kalyanpur, potatoes were being sold at Tk70-75 per kilogram, down from last week’s price of Tk75 to Tk80.
Wholesale prices have also decreased, with potatoes selling at Tk60-63 per kilogram in the wholesale market, compared to Tk63 to Tk65 at the cold storage gate.
Md Iliyas, a wholesale potato trader in Karwan Bazar, said, “Due to the end of the season, the supply of potatoes is very low. Prices are unlikely to decline until new potatoes enter the market and may even increase further.”
Potato prices have remained high throughout the year, going up to as much as Tk55-60 per kilogram in April, an unusual trend compared to previous years.Market analysts believe that the involvement of multiple middlemen, along with cold storage owners’ influence, has kept prices elevated.
SM Najer Hossain, vice president of the Consumers Association of Bangladesh, criticised the current market structure, saying, “Farmers are unable to store potatoes directly due to a system designed to favour middlemen.
Cold storage owners, in collaboration with these intermediaries, have manipulated prices from the beginning of the year.
As a result, consumers have been suffering consistently along with the farmers, who have to bear the brunt despite their hard work.”
He added that the government must take decisive action to address this issue as well as set up state-run cold storages to break the monopoly of private owners.
He further said that farmers should also have access to direct loans, eliminating their reliance on large businessmen who use these loans as leverage to destabilise the market.
While potato prices have risen, local onions are now selling at Tk120-130 per kilogram in retail markets, with imported varieties priced at Tk100-110.
This marks a significant decrease from last week when local onions were sold at Tk140-150 and imported onions at Tk110-120 per kilogram.
According to traders, the arrival of new Indian onions has stabilised prices.
“Local onions are selling at Tk110 per kilogram in the wholesale market, and Indian onions are at Tk90.
With consistent imports, prices are unlikely to rise further this season,” said Md Babul Mia, general secretary of the Karwan Bazar Onion Traders Association.
The supply of winter vegetables has increased, but prices have not dropped significantly.
Brinjal is being sold at Tk80-120 per kilogram, radish at Tk50-60, turnip at Tk100, and okra at Tk70-80. Cauliflower and cabbage are priced at Tk50-60 per piece, while bottle gourd is available at Tk60-70.
Fish and meat prices have remained steady. Broiler chicken is selling at Tk180-190 per kilogram, Sonali chicken at Tk300-310 and eggs at Tk150 per dozen. Beef is priced at Tk700-800 per kilogram, while mutton costs Tk1,000-1,150.
In the fish markets, Ruhi and Catla are being sold at Tk320-400 per kilogram, farmed Koi at Tk250-280, Tilapia at Tk240-250, and Pangas at Tk220-230, depending on quality.
