The government is importing 27.15 million litres of refined soybean oil from Canada to prevent any artificial shortage of edible oil in the market ahead of the holy month of Ramadan.
The approval came on Wednesday at a meeting of the Advisers Council Committee on Government Purchase held at the Secretariat, chaired by Finance Adviser Dr Salehuddin Ahmed.
The oil will be procured through the Direct Purchase Method (DPM) on the international market. Including all costs up to Trading Corporation of Bangladesh (TCB) warehouses, the price has been fixed at Tk163.06 per litre.
Meeting sources said the Ministry of Commerce placed the proposal to procure 27.15 million litres of refined soybean oil under the DPM, which was reviewed and approved by the committee.
Officials concerned said the decision was taken on an urgent basis to increase supply and stabilise prices in the domestic edible oil market.
As part of the process, price quotations were sought from NSRIC Green Supplies Incorporated of Canada (source: Brazil), which later submitted its offer. The Tender Evaluation Committee (TEC) assessed the proposal and found it technically and financially responsive.
Following negotiations, the government decided to purchase the oil from NSRIC Green Supplies Incorporated at a total cost of Tk357.62 crore through the direct purchase method.
The price of soybean oil packed in two-litre PET bottles has been set at Tk131.49 per litre up to Chattogram port. Including additional costs to deliver the oil to TCB warehouses, the final cost will be Tk163.06 per litre.
Officials said the imported oil will be sold in the open market at a price higher than the procurement cost but lower than the government-fixed retail price, meaning no subsidy will be required from the government.
Earlier, on January 6, the advisory committee approved the purchase of 13.575 million litres of soybean oil from a Thai company to ensure uninterrupted supply during Ramadan. The oil will be supplied by Prime Corp World Company Limited at a total cost of Tk178.47 crore.
For that consignment, the price per litre up to Chattogram port was fixed at Tk131.47, while the cost including delivery to TCB warehouses was Tk162.63 per litre.