Business leaders blame each other for cooking oil shortage

How did soybean oil completely go out of stock from stores right after Eid? When the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) sat down with stakeholders to find out, they ended up blaming each other for the crisis. 

FBCCI President Md Jashim Uddin sat down with the concerned business leaders on Wednesday only to have the meeting end in a mutual blame game among millers, wholesalers and retailers, as well as renewing of old promises.

FBCCI President Md Jashim Uddin said: “I do not want to be the president of a band of thieves. You have to do business with a good policy. Oil is not available in the market, but it is available in different warehouses. Even after the prices are being increased, again and again, you have created a crisis in the market. I hope all of you will change this situation very soon.”

Leaders of various cooking oil organizations have also promised that there will be no shortage of cooking oil in the market within a week.

Asked about the reason behind this sudden crisis, Golam Maula, president of Bangladesh Wholesale Edible Oil Traders' Association, said: “Earlier, there were 80 refineries in the country and now only 5-6 companies import cooking oil. They sell to us after refining. We get as much as they give us. How would we get oil if the millers don't supply oil according to market demand?”

FBCCI President Md Jashim Uddin sat down with the concerned business leaders to talk about cooking oil crisis on Wednesday

Based on his allegations, S Alam Group Senior General Manager Kazi Salahuddin Ahammad said: “There is a shortage of oil in the international market. On top of that, the dollar exchange rate rose in the country. Meanwhile, Indonesia stopped selling oil and the Russia-Ukraine war began. All this happened within a few months. We asked the government to increase the price of cooking oil during Ramadan. We were told to consider Ramadan and that the price will be up after Eid. We have been supplying oil the entire time. However, some retailers and wholesalers have hoarded that oil at that time for extra profits.” 

“Due to this, I think this artificial crisis was created in the market. But I think this shortage will go away within a week,” he added.

Bangladesh Shop Owners Association's Secretary-General Zahirul Haque Bhuiyan said: “Everyone is blaming us. Some big businessmen are being humiliated saying they have stockpiled. But retailers or wholesalers have to stockpile goods. If not, how do they sell? It is not stated anywhere in the law of Bangladesh how much product will be kept in stock.”

For example, he added: “If a retailer or wholesaler buys oil for a week or a month from a company today, it will not work if he is caught as a hoarder the next day.”