TDS Desk

Bottled soybean oil has virtually vanished from the shelves of retail stores across the capital, driven by an import crunch and rising international prices. The shortage has left consumers frustrated and retailers grappling with dwindling supplies.

According to importers and refiners, soybean oil and oilseed imports have dropped by 15-20% this year compared to the previous year, exacerbating the supply crisis.

Biswajit Saha, general manager (Finance and Accounts) of City Group, said the crisis has been fuelled by banks’ reluctance to open letters of credit (LCs) for importing soybean oil due to higher international prices.

“If companies import soybean oil and sell it at current prices, they face a loss of Tk10-15 per litre,” he said, adding that a mere reduction in duty would not suffice as global prices remain significantly high.

A visit to kitchen markets in Mirpur 6, Mirpur 11, Mirpur 12, Mirpur 13 and Shewrapara on Friday revealed widespread unavailability of bottled soybean oil. Where available, prices were Tk20-30 higher per litre than the government-fixed retail price.

Supermarkets such as Shwapno and Prince Bazar of Mirpur 13 were limiting sales to prevent hoarding, with shelves often empty within hours. At Mina Bazar in Bashundhara, a few five-litre bottles were available, while Apon Mart had a relatively better stock.

In some areas, retailers reportedly hid their stocks, selling one-litre bottles at Tk190-200, significantly above the regular price. Loose soybean oil was also being sold at similar rates.

Ashikur Rahman, a consumer in Mirpur, said he had to visit 10 grocery shops before finding a five-litre bottle of soybean oil at Tk818 at Prince Bazar.

He also said some retailers were allegedly transferring bottled oil into loose containers to sell at higher prices.

According to the National Board of Revenue (NBR), crude soybean and palm oil imports totalled 3,68,000 tonnes in October and November this year, a 20% decrease from 4,60,000 tonnes during the same period last year. Soybean seed imports, yielding 15-18% oil, remained nearly stagnant, with only a slight increase to 2,20,000 tonnes.

Following the government transition in August, the number of edible oil importers has also declined. In November, 1,69,000 tonnes of soybean and palm oil were imported, with the majority handled by TK Group, Meghna Group of Industries (MGI) and Smile Food Products.

To ease the crisis, the government reduced VAT on soybean and palm oil imports to 5% and fully waived VAT at production and trading levels. While this lowered import costs by Tk10-15 per kg, the benefits are yet to translate into market stability due to the supply crunch.

Retailers have reported a sharp decrease in supplies from oil companies, particularly for one-litre bottles. The reduced imports and limited distribution have left shelves bare and consumers anxious.

Despite government efforts to stabilise the market, the shortage persists, with little immediate relief in sight for either retailers or consumers, they said.