Edible oil prices rising despite a surge in imports

Bangladesh's imports of edible oil were up 23.24 percent to $423.46 million in the first five months of the current fiscal year compared to the same period a year earlier.

Of which, refined oil imports increased 29.32 percent to $312.17 million, while crude oil imports increased 8.89 percent to $111.29 million from July through November in fiscal year 2020-2021, according to the latest data from the Bangladesh Bank.

Over the past several months, the edible oil price has been rising in the domestic market in line with the international markets, traders say.

In a span of one-day, the cooking oil of different brands rose by Tk 30-40 per five litres. On Sunday, five-litre cooking oil of Bashundhara brand was being sold at Tk 550, up from the previous day's Tk 520 and Teer brand was priced at Tk 580, up from Tk 530. The prices of other brands, including Rupchanda and Pushti, also registered a rise.

Consumers now are to spend more on edible oil as prices are spiking in the global market due to production fall in exporting countries amidst the Covid-19 pandemic.

"The edible oil price is going up almost every day in the local market and price spike in the international market," said Mohammad Alam, a wholesaler at the Kawran Bazar.

Bangladesh met its demand for cooking oil through imports mostly from Brazil and Argentina hit by the coronavirus.

During the 66 days lockdown that ended on May 31, 2020 in Bangladesh, food imports including edible oil declined due to lower domestic demand and reduced imports.