Edible oil prices may dip soon

The edible oil price may come down soon in the local market as its price in the international market has started to decline, said Commerce Minister Tipu Munshi yesterday.

Within the next six or seven days the commerce ministry will assess the data on edible oil import, the prices in the local and international markets, May's supply and stock and fix a new price, he told reporters at his office in the secretariat.

The price of cooking oil in Bangladesh is dependent on the vagaries of price movements in the global markets as up to 90 percent of the annual demand of 20 lakh tonnes is met through imports.

Last month, the price of bottled edible oil was raised by Tk 38 a litre to Tk 198 on the back of a jump in price in the international market.

The prices of imported commodities have gone up in the local market because of an abnormal hike in freight charges and devaluation of the local currency against the greenback, Munshi said.

However, the state-owned Trading Corporation of Bangladesh will resume its open-market sales of six basic commodities including edible oil at subsidised rates to one crore families across the country from June 15.

Regarding the price hike of rice, the minister said a section of traders has created an artificial crisis of the staple in the local market and exploiting the situation.

Moreover, some big local companies have been selling rice in packs and charging an extra Tk 15 per kilogram for the staple.

For instance, the companies are charging Tk 75 a kg for coarse rice that sells at Tk 60 in the open market by packaging it.

"A section of affluent people is buying the coarse packaged rice at the higher prices. Why are they doing this and encouraging such practices?"

Asked if the companies would be barred from selling the rice, Munshi said: "It's a legal affairs issue."

The agricultural ministry has been monitoring the rice price, he said, adding that commerce ministry will step forward if its assistance is sought.

About three crore people are living below the poverty line and the government has been trying to improve their fates.

At the same time, five crore people have the buying capacity of Western consumers.