Traders want to increase edible oil prices

Traders want to increase the prices of edible oil showing the excuse of dollar price increase in the open market.

Bangladesh Vegetable Oil Refiners and Vanaspati Manufacturers Association has written a letter to the Bangladesh Trade and Tariff Commission to adjust the prices quickly.

The association’s letter sent to the commission said the value of the dollar has increased significantly in the country's market. The dollar conversion rate for import of edible oil currently stands at Tk 122-124. But according to Bangladesh Bank's instructions, banks are not allowed to take more than Tk 111 per US dollar in opening LC.
According to the traders association, this conversion value was fixed at Tk 111 when the price of edible oil was last fixed.

Market analysts said the dollar rate rose to Tk 122-124 in the open market in last 10 days. In this short time, traders didn’t bring edible oil to the country by opening LC. Usually, it takes more than one and a half months to import crude soybean oil. Companies are now trying to increase the prices in the domestic market showing an excuse of high dollar price, it is absurd.

The letter signed by the association’s executive officer Nurul Islam Mollah has been submitted to the chairman of the commission.

On Wednesday, Bangladesh Trade and Tariff Commission sources said that an application has been submitted by businessmen to increase the prices of edible oil. It is being reviewed by the commission. The commission will hold a meeting with the companies after the review. Then the decision will be announced.

Incidentally, the Ministry of Commerce set new prices of edible oil on September 17. At that time, the price of bottled soybean oil was reduced by Tk 5 to Tk 169 per liter. And the ministry decided to reduce the price of palm oil by Tk 4 to Tk 124.