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Rising import costs and freight disruptions push domestic prices higher after Ramadan, and stock stability. Prices of edible oil, sugar, and spices have risen across major wholesale markets in Bangladesh over the past several weeks.
Traders attribute the increases to rising international commodity prices, higher freight costs, and supply disruptions caused by the war in the Middle East. According to them, these pressures have pushed up import expenses and, in turn, domestic prices.
At Khatunganj in Chattogram, one of the country’s largest wholesale hubs, traders said the market remained relatively stable during the last Ramadan thanks to adequate stockpiles. However, conditions began to change after Eid as supply tightened.
Abdur Razzaq, a businessman at the market, said prices are becoming unpredictable, although there are no major shortages. “Prices of some products have risen abruptly as imports are being affected and costs have gone up.”
Among the edible oil category, soybean oil prices have recorded the most notable increases in recent weeks, according to traders. At Khatunganj, according to Razzaq, a maund of soybean oil now sells for Tk 7,400, up from Tk 6,600 a week ago. Palm oil climbed to Tk 6,450 from Tk 6,000.
In Dhaka’s Karwan Bazar, bottled oil prices have remained largely unchanged, but loose soybean oil has risen by approximately Tk 1,200 per maund since Eid, reaching Tk 6,600-Tk 6,700, said Abu Bakar Siddique, a trader at the market. Loose soybean oil is reportedly selling at Tk 7–8 per litre above the government-set price, he added.
Bangladesh sources the bulk of its edible oil from outside the Middle East, according to the data from the National Board of Revenue (NBR) and traders.
Soybean oil and raw oilseeds are primarily imported from Brazil, Argentina, and the United States. Palm oil, the country’s most consumed cooking oil, comes largely from Indonesia and Malaysia, according to data from the National Board of Revenue and traders. A senior official at a leading commodity importing and processing company confirmed that none of these shipments transits through the Strait of Hormuz.
The price movements nonetheless reflect a broader surge in international commodity markets since the war started in late February. According to the World Bank’s latest Pink Sheet, detailing commodity prices, published this month, palm oil averaged $1,103 per tonne in March, up from $1,039 in February and $1,005 in January.
Soybean oil rose more sharply, reaching $1,482 per tonne in March from $1,282 in February – a month-on-month increase of about 16 percent. Soybean meal prices increased to $473 in March from $425 in February.
Amirul Haque, managing director of Delta AgroFood Industries, a major soybean meal-oil importer, said the situation is largely driven by rising global import costs. He noted that oilseed prices had climbed from $435–$450 to nearly $500 per tonne within a month and a half and could rise further to $550. He fears that soybean oil prices in the international market may exceed $1,300 per tonne, in line with trends at the Chicago Board of Trade.
Luthful Kabir Shaheen, director of business development at City Group, which markets the Teer brand of edible oil, said, “The reason is surging freight costs, which have gone up by 2-2.5 times since the war.”
Officials from Meghna Group, which markets Fresh-branded products and is among the country’s leading commodity importers, declined to comment. Meanwhile, Golam Mawla, president of the Bangladesh Wholesale Edible Oil Traders Association, said the increase reflects ongoing market pressure rather than a sudden crisis.
“Products are available, but they are sold quickly upon arrival, creating a perception of tight supply,” he said.
Karwan Bazar’s retailer Siddique echoed the sentiment, saying panic buying had added further pressure. “The government has little control, and wholesalers in Khatungonj and Dhaka’s Moulvibazar are setting prices as they wish.”
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Source: Online/OFA
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