20/02/2008 (The New Nation, Bangladesh) - Uptrend in the price of consumable items including edible oil and salt has made consumers to pay more. The import price of edible oil as well as salt has again increased in recent months. The production of edible oil and salt in the processing units, run by local businessmen, are import-dependent. It is reported that import and processing of edible oil has turned more expensive. Businessmen are paying higher prices for the imported products from the countries of origin. The owners of processing units are paying higher import price plus the Value Added Tax (VAT).

The leaders of the business community involved in the import, processing and marketing of edible oil and salt have alleged that the imposition of VAT on these products has created an extra pressure on their prices. The price of edible oil has increased in line with the international market price and the same uptrend may continue in coming months. The Salt Producers Welfare Association has alleged that their products faced competition from imported salt sold at relatively cheaper prices. In fact, the production of edible oil and salt and their marketing are beyond the control of relevant official agencies. While salt growers are complaining of the so-called under pricing of their products, at the wholesale and retail markets, the price of imported edible oil processed and marketed by local enterprises has steadily increased.

The decision of the Indian government to set up commission for monitoring the import and processing of edible oil, as well as salt has yielded good results. The government may put the processing and marketing of edible oil and salt under duty free provisions. The business community should be given official support for obtaining loans from financial institutions at low interest rates. The salt growers in Cox's Bazar and Teknaf area should be provided with official support including withdrawal of VAT for the benefit of poor consumers who have to spend a bulk of their income on consumable items.