The New Nation - Internet Edition

Syful Islam

The edible oil market has once again become unstable, as the importers and the refiners are locked in a competition to increase the price of the essential commodity.

Price of edible oil increased three times by Tk 100 within the last one week in the mills gate. On February 5 price of edible oil increased by Tk 50 for every 40 litres, by Tk 30 on February 6 and by Tk 20 on February 9.

Wholesalers alleged that mills owners are making the market unstable through increasing the price repeatedly to press the government for total withdrawal of VAT. Earlier, the mills owners compelled the government to withdraw tax on edible oil through the same practice.

At present VAT on edible oil is 16 per cent. On every litre VAT stands nearly between Tk 15 and Tk 16. But the mills owners are pressing the government technically to lift the VAT despite charging the consumers extra money for the essential.

Leaders of the Bangladesh Vegetable Oil Refiners and Vanaspati Manufacturers Association said price of edible oil increased in line with the international market price. There is no sign of decreasing the price of edible oil within the next month or two.

Association president MA Rouf Chowdhury said they were selling edible oil at a loss. Recently they started to raise price of oil to make up for the losses. He advised the government to lift VAT to get the problem of edible oil price solved.

Sources said there is no shortage of edible oil in the country right now. The yearly demand of edible oil in the country is 11 lakh tonnes. On February 3 the stock of palm and soyabean oil stood at 1.17 lakh tonnes. Another 50 thousand tonnes of oil are in the pipeline.

Per litre of soyabean oil was selling at Tk 97.40 in city's Moulavibazar while palm super was selling at Tk 93.57.

General Secretary of Moulavibazar Business Association Golam Moula said price of edible oil was increasing throughout last week. Rumour of price increase of edible oil spreads every day, which makes the market unstable.

President of Consumers Association of Bangladesh (CAB) Kazi Faruk Ahmed said edible oil companies were not following any rules in increasing the price frequently.

He said absence of government monitoring and proper actions allow them to increase the price of the essential.