Soybean Oil Market Unstable in Chattogram Ahead of Ramadan

Staff Report: PNN

Ahead of the holy month of Ramadan, the soybean oil market in Khatoonganj, Chattogram, has become unstable. Within the past week, the wholesale price of soybean oil has risen by nearly BDT 200 per maund. Traders fear that if supply conditions do not improve, prices could rise even further before Ramadan.

Wholesale sellers claim that a decrease in supply from the mills has created a shortage in the market. Many wholesale shops currently do not have enough oil, and they are having to sell from previously stocked supplies.

According to the Chattogram Seaport Plant Quarantine Center, 143,287 metric tons of soybean oil were imported into the country in November last year. This amount increased to 323,520 metric tons in December, and 331,103 metric tons were imported in January this year. Despite these import statistics, complaints about supply shortages persist.

Yesterday, in the Khatoonganj wholesale market, loose soybean oil sold at BDT 7,050 per maund, while palm oil sold at BDT 5,900 per maund. However, there was no new price increase for sugar, chickpeas, or other essential commodities.

Sona Mia Market in Khatoonganj is one of the main wholesale centers for soybean and palm oil. Hundreds of brokers and over a hundred oil traders conduct large-volume transactions daily. From morning to evening, the market is busy with buyers and sellers.

Wholesale oil trader Mohammad Ilish said the market is currently facing a severe shortage of soybean oil. New supplies are not coming from mills, and currently, only soybean oil from Meghna and Tike Group is available. Procuring new oil now costs close to BDT 7,500 per maund.

On the other hand, commodity importer Abul Bashar Chowdhury said international soybean oil prices have risen, and many importers have reduced bookings compared to earlier. Whether prices will rise further before Ramadan is difficult to confirm at this stage, but if supply remains lower than demand, price increases are likely.

Market insiders claim that irregularities in Delivery Orders (DOs) and slips are also contributing to market instability. When products are not delivered from mills according to the DO schedule, DOs and slips are exchanged multiple times. While intermediaries profit from this, ordinary consumers end up paying higher prices.

Traders said that although the government once instructed that the validity of DOs be limited to 15 days, this is not being followed in practice. In some cases, DOs are used for six to seven months. Similarly, prices rise when products are not delivered within the stipulated time for slips.

Market experts believe that to control soybean oil prices, this unethical practice of DO and slip trading must stop. Additionally, if regular supply from mills is not ensured, consumers are likely to face increased pressure during Ramadan.