No impact at kitchen markets yet

The Bangladesh Vegetable Oil Refiners and Vanaspati Manufacturers Association on Monday decided to reduce the price of edible oil by Tk3 per litre at the request of the Commerce Ministry.

Prices of edible oil have been reduced till Eid, considering the purchasing power of consumers amid Ramadan and Covid-19, the association said in a press release.

As more than 95% of the total demand for edible oil is met through imports, the recent market price hike has also had a huge impact on the local market, the press release reads. 

However, the price in the international market has not increased as much as the market of Bangladesh.

The release further said that the Ministry of Commerce is regularly monitoring domestic production, the international market, imports, and the local market.

No impact at kitchen markets yet

As per this decision, bottled soybean oil will cost Tk141 per litre from now on instead of the previously proposed Tk144. 

However, traders in the capital’s kitchen markets are already selling oil at the hiked price.

Visiting kitchen markets around the capital on Monday, including New Market, Hatirpool Kacha Bazar, Mohammadpur Krishi Market, Karwan Bazar, and Mohakhali Bazar, Dhaka Tribune found that the price cut had yet to make any impact.

The retail price of a litre of bottled soybean oil was being sold for Tk144, while the price of a five-litre bottle was Tk685.


Also read – Edible oil price jumps again within a week


Retail oil trader Mintu Sheikh at New Market said: “The soybean oil market is volatile compared to last year. We are retailers; we have no command over the price as it is set by the distributors and associations.”

Echoing similar concerns, another oil trader Abdur Razzak at Karwan Bazar said a Tk3 price cut would not have much of an impact. 

“We may sell at Tk3 less, but many others will sell at the previous price as the amount is not significant,” he added.

Solaiman Hossain, a customer out to buy groceries at Karwan Bazar, also said Tk3 was not a big cut and that traders had yet to sell at this new rate.

Another customer Sharifuddin Ahad at Karwan Bazar said a Tk3 price cut was a welcome move, but that a bigger price cut is required to help out consumers, especially during Ramadan and Eid. 

“If it was a Tk7-8 cut, that would be better for us,” he added.

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