Prices of crude soybean oil have dropped in the international market by 24% from last year.
Per tonne of the cooking ingredient stood at $1,306.69 on July 5, as against $1,727.08 per tonne a year back, showing 24.34% drop year-on-year.
Bangladesh mainly imports soybean oil from Argentina.
Sources said, if the large importing companies are monitored properly then prices in the local market will also come down.
Talking to Dhaka Tribune, a leading importer said that after booking commodities in the international market, goods reach Chittagong port within two months.
Meanwhile, the National Board of Revenue (NBR) extended the slap of 5% value added tax (VAT) on imported crude soybean at the import stage until September 30 this year.
The revenue authority also extended the VAT exemption at the production and trading stages of palm oil and soybean oil, imported mainly in crude form by refiners, according to notifications it issued.
The moves are being considered as prices of cooking oil are still high even after refiners cut soybean oil prices by up to Tk6 per litre on June 26.
Consumers currently buy a litre of bottled soybean oil for Tk190-200, down 3% Tk195-210 a week ago, according to data of prices collected by the state-run Trading Corporation of Bangladesh (TCB).
Prices of five-litre bottles of soybean oil and palm oil also declined.
Soybean oil prices increased five times from October 2021 to June 2022 in the local market.
On March 16 this year, the NBR slashed the VAT on edible oil imports to 5% from 15% to give some relief to consumers amid a public outcry against surging prices, slow delivery by mills, and stockpiling by a section of traders.
Meanwhile, the government also recently reduced the price of soybean oil by Tk6 per litre at Tk199
Talking to the press, senior commerce secretary Tapan Kanti Ghosh said that the decision to reduce the price of edible oil in the local market was taken in line with the reduction of price in the international market.
Meanwhile, a press release of the Bangladesh Vegetable Oil Refiners & Vanaspati Manufacturers Association said that the price of per litre loose soybean oil will be Tk180, per litre bottled soybean oil will be Tk199 while a jar of five-litre bottled soybean oil will be Tk980.
Other essentials
Meanwhile, price of one tonne palm oil stood at $1,165 on July 5, against $1,091 a year back, showing 6.78% drop year-on-year.
The price of one tonne of palm oil was $1,530 last month.
Indonesia is the main source of palm oil as a commodity.
Lentils cost $537.79 on July 5, as against $658.54 one month and $514.05 per tonne one year back respectively.
The price of a tonne of rice in the international market stood at $440 on July 5, against $475 last month and $490 last year, showing 7.37% and 10.20% drops respectively.
Wheat prices stood at $386.54 per tonne on July 5, against $475.83 a month back, an 18.76% drop.
However, the price of wheat is 29.24% higher compared to the price of the commodity one year back, as it was $299.09 one year back.
Refined sugar was showing an upward trend, as it was $544 US dollars on July 5, down from $551.95 on June 5, but up from $460.90 a year back.
Brazil is the main source of crude sugar in the case of Bangladesh.
Onion prices, meanwhile, have shot up in the international market.
Price of the imported variety stood at $161.29 per tonne on July 5, against $147.27 a month ago, 9.52% higher, but lower than $273.63 a year back.