Bangladesh's Bottled Soybean Oil Supply Plunges Amid Global Price Hikes

The bottled soybean oil supply in Bangladesh is shrinking, causing concerns among consumers and refiners. Traders are struggling to obtain enough oil from refiners, who are urging the government to raise prices again due to increasing global prices.

According to data from the Trading Corporation of Bangladesh, loose soybean oil prices rose 1.05% over the past week, while palm oil prices increased by 0.88%. Refiners claim that international edible oil prices have risen steadily over the past six months, pushing costs up to Tk 233 a litre.

Shopkeepers and traders are reporting inadequate supplies of bottled soybean oil, with some saying they can only get half of what they need. The shortage has been exacerbated by shrinking profit margins, leaving retailers reluctant to buy the oil.

Meghna Group's senior general manager, SM Muzibur Rahman, said his company was supplying bottled soybean oil as normal, but acknowledged that a few large companies were unable to meet demand due to various reasons. Another official at a major commodity importer and processor spoke anonymously, saying companies had been losing Tk 18-19 on every litre of bottled edible oil sold for six to seven months.