Commerce Minister Tipu Munshi on Monday said the dealers and retail businesses betrayed him by increasing the price of edible oil during the month of Ramadan.
“I had made a mistake by urging them to keep the prices of edible oil at a tolerant level during Ramadan. They did not keep my request, and it was a mistake to believe in their words,” he said.
His remarks came while talking to reporters at the Commerce Ministry's conference room at the Secretariat, reports UNB.
Admitting his ministry’s failure to control the price hike of this daily cooking ingredient, Tipu said: “It’s our failure. We had asked them not to increase the prices of edible oil. But they did not follow our instructions during the seven days of the Eid celebration.”
About the syndicate over edible oil, the minister said that he did not find its existence.
Tipu further said that the government has withdrawn 10% VAT on edible oil on March 20 as per our request. The price of soybean oil was reduced to Tk10 at that time.
“We have taken weekly information from big companies. The problem was created as retailers and dealers knew that oil prices would be fixed after Ramadan. Many businessmen hoarded edible oil before Eid. That was the fraud,” he continued.
Expressing his firm commitment to monitoring the edible oil market regularly, the commerce minister said that the government will not put pressure on the businesses though.
He, however, assured punitive action will be taken against the hoarders.
File photo of Commerce Minister Tipu Munshi Mehedi Hasan/Dhaka Tribune‘Strict action to ensure normal market situation’
Tipu also said that the government has taken strict action to ensure the normal supply situation of the edible oil side by side selling the oil at fixed prices at the retail level, reports BSS.
"We have told all the agencies to take stern action so that there is no fraud anywhere. Oil should be sold at the price that has been fixed," he added.
Referring to the recent rise in the price of edible oil in the international market, he said: "Considering the price situation in the international market and neighbouring countries, we are trying to keep the price of edible oil in the local market as low as possible."
He said the real reason behind the shortage of edible oil supply during Eid has been identified.
"Attempts have been made to stockpile oil at the dealer and retail level. As a result, there is a shortage in supply. That's why the Directorate of National Consumer Rights Protection is conducting raids at the store and dealer level, they are also imposing fines.
“We have asked the traders' association to cancel the dealership of those who have committed this heinous act,” he observed.
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Tipu informed that the Trading Corporation of Bangladesh (TCB) will resume the sale of edible oil at Tk110/litre of bottled soybean oil from June to its one crore cardholder families.
Tipu said the price situation of edible oil in the world market needs to be highlighted through publicity.
"Edible oil is an import dependent product. Only 10% of the country's total demand is being met from local production. The remaining 90% is being imported. This has also affected our country due to rising prices of edible oil in the international market and transportation costs," he added.
He further said that the government is trying to keep the price of edible oil at a reasonable level and supply at normal so that there is no shortage of oil in the market.
Recently, Bangladesh's edible oil refiners increased the price of bottled soya bean oil by Tk38/litre to Tk198/litre.
Highlighting the price of edible oil in the international market and neighbouring countries, Tipu said that soybean oil is currently being sold at Bangladeshi Tk213-224 per litre in India, Tk236-238 per litre in Pakistan and Tk197-214 per litre in Nepal.
He mentioned that soybean oil in the international market is US$2,000 per ton and the price of palm oil is $1950 per ton.
The minister said the rise in edible oil prices in the international market and rising transport costs have had an impact on the local market.
He sought the cooperation of the media to make the people aware of the rising prices of edible oil in the international market.
At the press meeting, City Group Chairman Fazlur Rahman said that he will extend all kinds of cooperation to the government to keep the prices of edible oil stable.
