18/01/2008 (The New Nation, Bangladesh) - Prices of edible oil have been continuing an upward trend. This essential consumer item experienced 57 percent increase in price over the last year and almost 7 percent over the past one month. The situation in the edible oil market is such that retail prices show an upward trend when prices in the wholesale market decrease.

The wholesale price of soyabean oil declined by Tk 40 per ton in the first week of the new year. But the retail prices instead of falling increased by as much as Tk 7 per litre. Soyabean oil, which was selling for Tk 90-95 per litre the week before surged to Tk 100-105 at different markets in the capital. But, according to sources close to Bangladesh Vegetable Oil and Refiners, Vanaspati Manufacturers Association and the Ministry of Commerce, there was no reason for the increase in prices as there is sufficient stock of edible oil and more is in the import pipeline.

According to the Ministry of Commerce, 'speculative factor of rumour' is responsible for the price spiral. But concerned quarters believe that unscrupulous sections of the business community are mainly responsible for the increase of price. From a motive to make extra profit they charge high prices from consumers. In the absence of an effective law to protect the rights of consumers, an unscrupulous section of traders increases prices. According to media reports, the lack of an effective policy in the country gives traders the liberty to demand any price they want. Mentioning the maximum retail price on the label of any product is mandatory in most countries. But no such labelling policy is followed in Bangladesh in case of edible oil. According to reports, the meeting of Bangladesh Standards and Testing Institution (BSTI) in July 2007 was scheduled to finalise the labelling policy, which was supposed to be effective from the beginning of 2008. But for certain reasons the proposed policy is yet to see the light of day. Against this backdrop, edible oil association urged consumers not to buy edible oil above the price mentioned on the label of containers. But it is reported that manufacturers do not mention MRP on the label allegedly with a view to increasing prices taking advantage of the present situation. The Ministry of Commerce had also urged the edible oil association leaders not to raise prices but without any result.

The government thus, must intervene to protect the consumers from this unbearable situation. The proposed labelling policy must be adopted and enforced soon. Mentioning of MRP on labels must be enforced before the marketing of edible oil. The proposed Consumers Rights Protection Ordinance 2007 is in the process of finalisation. The said law should prescribe punishments for violators of consumer rights. Urgent steps should be taken to stabilise edible oil prices.