As the holy festival of Eid-ul-Fitr approaches, the edible oil market in the capital has taken a volatile turn. Over the past week, a severe supply crunch of bottled soybean oil has hit retail markets, leading to allegations of price manipulation by a syndicate of companies, dealers, and retailers at the expense of general consumers.
In some instances, consumers are being forced to pay up to Tk 20 more per kilogram compared to prices just two weeks ago.
Supply Vanishes from Retail Shelves
A survey of various kitchen markets in Dhaka—including Mugda, Maniknagar, Sabujbagh, Khilgaon, and Motijheel—reveals that bottled soybean oil has largely disappeared from grocery store shelves. While some small shops retain limited stock, they are charging Tk 5–10 above the MRP.
Consequently, sales of loose (unpackaged) soybean oil have surged. Despite the government-fixed rate of Tk 195 per kg, retailers are selling loose oil for as high as Tk 210 to Tk 220 per kg. This represents a jump of nearly Tk 25 over the regulated price in just a fortnight.
The Blame Game: Geopolitics vs. Hoarding
The reasons behind the crisis remain a point of contention among stakeholders:
-
Retailers claim that companies have slashed supplies, making it impossible to meet demand.
-
Dealers point toward global instability, specifically the tensions between Iran, the US, and Israel, as a reason for reduced corporate supply. They also noted a reduction in commissions, forcing them to buy at MRP and sell higher to make a profit.
-
Market Insiders, however, suggest a different narrative. Some dealers claim that supply from companies actually increased this week. They allege that retailers are hoarding bottled oil to create an artificial crisis, thereby forcing consumers to buy high-priced loose oil, which offers a higher profit margin.
Supermarkets Implement Rationing
While chain supermarkets like Shwapno and Daily Shopping are adhering to government-fixed prices, they have been forced to implement “purchase limits.”
-
At Shwapno, customers are restricted to buying only one bottle per day to manage the sudden influx of shoppers fleeing the high prices of local grocery stores.
-
Staff at Daily Shopping reported that they were out of stock for nearly a week before receiving a small shipment of ‘Rupchanda’ brand oil on Friday.
-
Other outlets, such as Nadia Pharma and Super Shop, reported having no soybean oil in stock for over seven days.
Emerging Alternatives
Due to the scarcity, some shopkeepers are encouraging the sale of alternatives like Canola Oil (e.g., City Group’s ‘Teer’ brand). Canola oil is currently retailing between Tk 210 and Tk 215 per liter, slightly below its marked price, as a substitute for the missing soybean oil.
As the festive season nears its peak, consumers are calling for stricter government monitoring to dismantle the artificial supply crisis and stabilize prices.
