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Global edible oil prices are falling, especially for crude soybean oil, which has been falling for several months. However, domestic tariffs and market volatility are pushing up the retail price of the staple commodity. Despite the global decline in soybean prices, bottled and bulk soybean oil prices are likely to increase. Supply shortages continue as importers’ price hike proposals are yet to receive final government approval.
While global booking prices for crude edible oils like soybeans have declined, palm oil prices have risen marginally. Recently, the National Board of Revenue (NBR) imposed a 1 percent source tax on edible oil imports, leading to a rise in domestic prices by Tk 120-140 per maund (37.32 kg) in a few days. Mill owners have proposed a Tk 10 per litre increase in the price of bottled soybean oil. This increase in rumors has created supply shortages in market channels, especially at the dealer level, where businesses are unable to procure sufficient quantities of bottled soybean oil from mills, resulting in shortages in the retail market.
Source: Online/OFA
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