07/01/2008 (The New Nation) - Anarchy is now prevailing in the country's edible oil markets despite the falling in prices of rice in wholesale markets.

Besides, the price of atta (crushed wheat) continues to rise in both wholesale and retail markets as the manufacturers suddenly raised the prices on the ground of price hike in international markets and exhausting of stocks of wheat.

Though the price of soyabean oil declined at wholesale level, it has been showing an upward trend at retail level over the last one week. The prices of soyabean oil has increased by as much as Tk 7 per litre at retail level in the last one week although the prices fell by Tk 30 to Tk 40 per ton at wholesale level (mill gates).

In the wake of the anarchic situation in the edible oil markets, the government yesterday held a meeting with the edible oil importers and refiners at the Ministry of Commerce yesterday.

According to the Commerce Ministry officials, rumour is mainly responsible for price hike of edible oil in retail markets.

"The price in the retail market increased due to speculative factor of rumour," Commerce Secretary Feroze Ahmed told reporters after the meeting.

"We'll now look at the situation in the retail markets to find the reason of increased price," he said, adding that the wholesale price of soybean oil recently fell by Tk 30-Tk 40 per ton from the price level two weeks back.

Soybean oil was selling at Tk 100--Tk 105 per litre at different markets in the capital on Sunday, which was Tk 90- Tk 95 a week back.

The Commerce Secretary said the price of edible oil had increased as

the international price doubled in last six months to US$ 1,160-$1,185 per ton.

Replying to a question, he said there is nothing to worry about any possibility of short supply as the meeting was informed of enough stock of edible oil, including the imports in the pipeline.

Replying to another query, Feroze Ahmed said there is room for cutting the prices to some extent by way of reducing tax as the refiners had suggested. "However, it depends on government decision."

Total tax incidence (VAT and landing charge) on edible oil is Tk 10-Tk 12 per litre.

Talking to reporters, Bangladesh Vegetable Oil Refiners and Vanaspati Manufacturers Association chairman MA Rouf Chowdhury said there was no reason for the increase of edible oil prices in the retail markets for last 7-10 days as soyabean oil price has gone down by Tk 20-Tk 30 per ton. Soyabean oil has declined from Tk 3,400 to Tk 3,370 per ton at the millgates.

Rouf Chowdhury said the oil companies usually fix the maximum retail prices (MRPs) of soyabean oil which include the commission of retailers. So, there is no reason to sell soyabean oil at prices beyond the MRP on the containers.

"It's the responsibility of the government to look into the factors of retail market," he added.

Meanwhile, price of atta rose by Tk 1 per kg yesterday and it was selling at Tk 41 per kg in retail markets.

Retailers alleged that the atta manufacturing and packaging companies themselves increased the prices of atta on the grounds that high prices of wheat in international markets and exhausting of stocks of wheat.

Expressing strong resentment, consumers yesterday alleged that atta which was sold at Tk 37 a kg only a week ago was selling at Tk 41 per kg.