Edible oil prices will be adjusted based on international market trends and domestic production and processing costs, Commerce Minister Khandaker Abdul Muktadir said on Thursday.
Speaking to reporters in Dhaka’s Mohakhali area, the minister said soybean oil is fully import-dependent. Any fluctuation in the international market directly affects the local market.
The ministry follows a specific formula to determine oil prices. The final price is calculated by adding freight, unloading costs, insurance, refinery processing costs and transport wastage to the Free on Board or FOB price, he said.
Muktadir said members of the public and journalists could cross-check the calculation using international indexes.
On the risk of business losses, Muktadir said, the edible oil trade in Bangladesh is largely dependent on the private sector. If importers suffer continuous losses, the supply chain could be disrupted. A reasonable balance is therefore necessary to keep the market stable and prevent entrepreneurs from shutting down their businesses.
On government measures to control the market, the minister said the Trading Corporation of Bangladesh is providing subsidised essential goods to approximately 78 lakh families every month. In addition, open truck sales are held during the two Eids, and regular Open Market Sale operations are ongoing under Food Ministry. Banks are monitoring letters of credit and import pipelines to prevent any artificial crisis in the market.
On sugar, Muktadir said leading refiner Meghna Group had sufficient raw sugar in stock. A temporary disruption in production due to utility issues had occurred, but the supply situation would soon return to normal.
