The Bangladesh Competition Commission has imposed an administrative fine of Tk32.44 crore on Shabnam Vegetable Oil Industries Limited, a subsidiary of the TK Group of Industries. The penalty follows the Commission’s conclusion that the company engaged in coordinated practices that restricted supply and artificially raised edible oil prices in early 2022.
In a final order dated 29 April 2026, the Commission found that Shabnam Vegetable Oil Industries, alongside several major edible oil producers and supply order (SO) holders, violated the Competition Act, 2012. The investigation covered January to June 2022. Regulators said the company supplied edible oil against expired supply orders and failed to deliver products within the stipulated time, creating artificial market shortages contrary to government regulations that limit SO validity to 15 days.
The report highlighted that expired SO-based transactions facilitated indirect coordination between suppliers and buyers, amounting to anti-competitive agreements under Section 15 of the Competition Act. Investigators noted that during February–March 2022, multiple leading edible oil producers operated below capacity despite strong market demand ahead of Ramadan and Eid-ul-Fitr. Industry-wide capacity utilisation ranged from 39.06 per cent to 84.61 per cent, while Shabnam Vegetable Oil Industries operated at 56.35 per cent.
The Commission also reported that several firms maintained large crude soybean oil stockpiles while reducing market supply, intensifying shortages. Retail prices of unpackaged and bottled soybean oil rose by 22.47 per cent and 26.67 per cent respectively between January and May 2022, according to Trading Corporation of Bangladesh data cited in the ruling.
The Commission concluded that coordinated production cuts, restricted supply, and repeated trading of supply orders collectively caused abnormal price hikes. Shabnam Vegetable Oil Industries was found to have violated multiple provisions of Section 15, including anti-competitive agreements and abuse of market dominance.
Based on the company’s average turnover over 2019–20, 2020–21, and 2021–22, the Commission imposed the Tk32.44 crore fine. The firm must pay within 30 working days but may appeal or seek review under the law. Managing Director of TK Group of Industries M A Kalam declined to comment.
The ruling underscores regulatory scrutiny of edible oil pricing and supply chain practices in Bangladesh, particularly during high-demand periods. It also signals potential broader consequences for market conduct in the country’s edible oil sector, which has faced previous allegations of coordinated pricing and supply manipulation.
