The Directorate of National Consumer Rights Protection (DNCRP) boss has warned edible oil suppliers of severe penalties if they impose conditions on the sale of essential food item.
“The consumers are being forced to buy additional products like rice, flour, and tea alongside soybean oil, and there is evidence of this practice in the market. However, oil refinery companies deny such actions. If such practices continue, both companies and dealers will face fines,” said Alim Akhtar Khan, director general of the DNCRP.
He was chairing a meeting on Sunday morning at the Trading Corporation of Bangladesh (TCB) building in the capital, which focused on updating the status of edible oil, maintaining price stability, and ensuring normal supply, particularly during the holy month of Ramadan.
Representatives from edible oil mill owners, the Bangladesh Wholesale Edible Oil Traders Association, the Bangladesh Vegetable Oil Refiners and Vanaspati Manufacturers Association, retail edible oil traders, the Consumers Association of Bangladesh (CAB), and other relevant departments were also present at the meeting.
Addressing the meeting, Fakir Mohammad Monowar Hossain, a DNCRP director, highlighted that after visiting four markets in the capital, they found a shortage of edible oil in retail stores, with dealers and wholesalers reducing supply.
The imposition of conditions on oil sales was confirmed, and wholesalers were unable to provide receipts. Furthermore, there was a delay in the timely supply of oil despite orders. In some cases, the price of unpacked oil was found to be higher than bottled oil, he noted.
Alim mentioned that palm oil is selling in the market at prices lower than the government’s fixed rate, and the situation with soybean oil is currently precarious. He noted that the market has been unstable for the past 3-4 months, and the country depends on six refining companies for oil supply.
Golam Mowla, president of the Edible Oil Owners Association, emphasised the need to stop the blame game between companies. He explained that companies import and refine oil, while their association handles the sales, and that for years, the Tariff and Commerce Ministries have been jointly setting the prices.
Refiners hope for end to supply crisis soon
Meanwhile, the Bangladesh Vegetable Oil Refiners and Vanaspati Manufacturers Association expects that the ongoing soybean oil crisis will be resolved shortly.
In a media statement on Sunday, the association claimed that given the increased demand for edible oil ahead of Ramadan, its member organisations are supplying more oil than usual.
With this increased supply, there is no reason for a crisis to occur. If the shortage has been caused by some traders hoarding oil, the issue will soon be resolved, the association assured the consumers.
Major domestic edible oil producers, including City Group, Meghna Group, TK Group, and Bangladesh Edible Oil Limited, have imported more oil than the market demand, which will be available in the market within the next 7-10 days, it explained.
About growing concerns among consumers due to reports of a supply shortage, they urged consumers and traders not to panic and purchase excessive quantities of oil.
The association says it has been in regular contact with relevant government ministries and departments to resolve the issue quickly.
In addition, it also called for increased government monitoring of the market to prevent any negative impact on oil supply and prices, and urged consumers to remain patient and cooperative during this time.
The refiners’ association also claimed that due to the stability in the prices of crude soybean and palm oil in the international market, there is no scope for abnormal profits.
