The supply shortage of bottled soybean oil has once again intensified in the market. As a result, retail prices of loose soybean and palm oil have increased by Tk 2–4 per litre. Meanwhile, farm chicken egg prices have also risen over the past week. Prices of broiler chickens and various types of fish, however, remain high and largely unchanged.
The information was gathered on Thursday (October 1) after visiting Mohammadpur Krishi Market, Palashi Bazar and Kallyanpur New Market in Dhaka and speaking with buyers and sellers.
Retailers said companies are releasing smaller quantities of bottled soybean oil into the market. As a result, they are receiving less oil than required from dealers and suppliers. According to dealers, companies have reduced supplies because they are seeking another price increase.
A visit to several markets found that one-, two- and five-litre bottles of soybean oil were not consistently available according to demand. At several shops in Mohammadpur Town Hall Market, only four or five bottles were available at each store. Some shops had no one-litre bottles, while others had no two-litre bottles.
Retailers said the supply of bottled soybean oil has not stopped completely, but it is significantly lower than demand. Some sellers are also keeping part of their available stock out of public view.
One grocery retailer at Mohammadpur Krishi Market said he normally needs around 10 cartons of soybean oil a day but received only four cartons from his dealer. He said he has to keep some bottles aside to meet the needs of regular customers.
Prices of Loose Oil Also Rise
A shortage of bottled soybean oil generally increases demand for loose oil. According to data from the Trading Corporation of Bangladesh (TCB), the price of loose soybean oil has risen by around 1% over the past week to Tk 190–195 per litre. Loose palm oil has also increased by around 0.88%, reaching Tk 170–175 per litre.
That means prices of both types of loose oil have risen by around Tk 2–4 per litre.
Companies Seek Another Price Increase
The supply shortage of bottled soybean oil began emerging in February this year. At the end of April, the price was increased by Tk 4 per litre to Tk 199. Another supply shortage emerged around July, followed by a further Tk 5 increase on September 3, bringing the price to Tk 204 per litre.
This marks the third major supply shortage of bottled soybean oil in the market this year.
Companies involved in edible-oil refining and production are now seeking another price increase. On September 20, the Bangladesh Vegetable Oil Refiners and Vegetable Fat Manufacturers Association sent a letter to the commerce secretary requesting a price adjustment.
However, Commerce Minister Khandaker Abdul Muktadir said in Sylhet on Wednesday that although businesses have demanded a price increase, the government will make a decision after reviewing the matter. He said edible-oil prices would not be increased before the review is completed.
Eggs, Chicken and Fish Remain Expensive
Egg prices have risen by around Tk 10 per dozen over the past week. A dozen eggs now costs Tk 155–160, while four eggs are selling for around Tk 55 at neighborhood grocery stores.
Meanwhile, broiler chicken has remained around Tk 200 per kilogram for nearly two months. Fish prices are also relatively high. Rui weighing two to two and a half kilograms is selling for Tk 380–400 per kg, pabda for Tk 400–450, tilapia for Tk 250–260 and pangash for Tk 250–280.
The continued high prices of eggs, chicken and fish are putting additional pressure on low- and limited-income households. A security guard living in Dhaka’s Shekertek area said that buying even basic sources of protein has become increasingly difficult on his limited income. He noted that broiler chicken prices have remained high for months, while eggs have now reached around Tk 160 per dozen.
