Commerce Minister Khandakar Abdul Muktadir announced that the price of soybean oil will be adjusted based on international market prices as well as domestic production and processing costs. The prices of edible oil are determined in line with the international market, taking into account domestic production and processing costs. The minister explained that soybean oil is entirely import-dependent and fluctuations in international commodity prices have a direct impact on the local market.
Determining Edible Oil Prices
The Ministry of Commerce follows a specific formula for determining the price of imported edible oil. The final price is calculated by adding freight, unloading costs, insurance, refinery processing costs, and wastage during transportation to the Free on Board (FOB) price. Commerce Minister Muktadir noted that ordinary people and media professionals can also easily verify the calculation by looking at international price indices.
Government Measures for Market Stability
To keep the market stable, the government provides essential commodities at subsidized prices to around 7.8 million families every month through the Trading Corporation of Bangladesh (TCB). Products are also sold through open trucks during the two Eid festivals, and regular Open Market Sale (OMS) activities continue under the Ministry of Food. The government is continuously monitoring the opening of letters of credit (LCs) by traders and the import supply pipeline to prevent any artificial shortage in the market.
Other Market Insights
Regarding the sugar market, Commerce Minister Muktadir mentioned that Meghna Group, one of the country's leading refiners, has sufficient raw sugar in stock. Production was temporarily disrupted due to utility-related problems, but the supply situation will return to normal soon. On the pay scale of government employees, Muktadir said their salaries had not been adjusted for the past 11 years, making the move reasonable in view of the prevailing inflation. The new pay scale would be implemented gradually by July next year.
Why This Matters for Bangladesh
The adjustment of soybean oil prices based on international and domestic factors is crucial for ensuring a stable supply of edible oils in Bangladesh. As the country is entirely dependent on imports for soybean oil, fluctuations in global prices can significantly impact local markets. By following a transparent and formula-based approach to pricing, the government aims to maintain market stability and prevent supply disruptions. This is particularly important for the millions of families who rely on subsidized essential commodities provided by the Trading Corporation of Bangladesh.
