24/02/2009 (The New Nation) - Businessmen have again resorted to unethical practice of raising edible oil prices through the formation of syndicate.

Besides, importers are marketing edible oils at almost double prices compared to the existing prices in the international market.

It has been found that prices of soyabean, palm super and palm oil have gone up by Tk 6-8 per litre in the local market without any reason.

According to the Trading Cor5portaion of Bangladesh (TCB), the government agency under the Ministry of Commerce for importing and marketing essentials, soyabean and palm oil prices have gone up by Tk 6 per litre during the last weeks.

Though the importers, wholesalers and retailers blamed each other for the price hike of edible oils in the local market, sources at the TCB said there is no valid ground behind the price hike of edible oils right at this moment as the edible oil prices have been going down day by day in the international markets.

In the international market, prices of edible oils have gone down by almost 50 per cent compared to the prices that prevailed only six months ago. Besides, there is no deficit of edible oils in the country against the demand. Though the Ministry of Commerce has recently formed a "Market Monitoring Committee," it has utterly failed to make any impact on the essential price reduction in the market. Ordinary consumers are not getting benefit of the formation of this committee.

Meanwhile, soyabean, palm super and palm oil are now being sold at almost double prices in the local market compared to the prices prevailing in the international market on the ground of lame excuses of additional costs shown by the importers. At present, each tonne of soyabean oil is being sold at US$ 620-625 in Malaysia, while each tonne of soyabean oil is being sold at US$452 in Argentina. If these prices are taken into account, each kilogram of soyabean oil from Malaysia and Argentina costs Tk 43.125 and Tk 31.188 respectively.

On the other hand, palm oil is now being sold at US$ 408 per tonne in the international market and according to this price, each kilogram of palm oil costs Tk 28.152. It is also learnt that each kilogram of edible oil costs additional Tk 3 for transportation and other expenses. So, each kilogram of soyabean and palm oil is purchased at Tk 34-46 and Tk 31 respectively.

But visiting different markets, including New Market and Karwan Bazar in the city yesterday this correspondent found that soyabean oil was being sold at Tk 74-78 per kg, palm super at Tk 64-66 per kg and palm oil at Tk 55-56 per kg. Traders said the prices had gone up by Tk 6-10 compared to the prices of two weeks back.

Bangladesh Wholesale Edible Oil Traders Association general secretary Haji Md Abul Hashem said the prices of edible oil remain static in the local market although it had slightly gone up compared to the prices of two weeks back.

He said investment in the international market had gone down for global economic recession. As a result, prices of essentials, including edible oils had also gone down. But many people are coming forward to invest in this sector. So, there is a possibility that the prices of edible oil might go up in the days ahead.

Bangladesh Edible Oil Importers Association president and FBCCI director Abdur Rouf Chowdhury said edible oil is now being sold at 'right prices' matching with the prices prevailing in the international market.

He said edible oils which are now being sold at higher prices were imported earlier. Prices would go down further after the newly imported consignments reach the country.

He said the prices of edible oil had gone up at the retail level and it has no relation with the importer or wholesale level. The Ministry of Commerce should strengthen its monitoring at the retail level so that the retailers cannot hike edible oil prices at their whims.