Soybean oil shortage in the market prompts duty reduction to increase supply

The market is currently experiencing a significant shortage of soybean oil due to edible oil refining companies halting the sale of bottled soybean oil to dealers for the past week. This disruption has caused substantial inconvenience for consumers.

In response, the trade advisor convened a meeting with edible oil refining traders on Thursday to address the supply issue. During the meeting, it was agreed to reduce the value-added tax (VAT) on edible oil imports from 10% to 5%. Following this decision, companies committed to increasing the supply of bottled soybean oil in the market.

During a visit to several markets across the capital—Sheorapara, Mohammadpur Agricultural Market, Kathal Bagan, and New Market—most stores had a limited stock of bottled soybean oil.

Masudur Rahman, a trader at Kathal Bagan market, reported that his shop had not received soybean oil for five days, and dealers were unable to provide an estimate of when it would be available. According to the Trading Corporation of Bangladesh (TCB), open soybean oil currently retails at Tk 170-172 per liter, with palm oil priced at Tk 162-163 per liter, and bottled soybean oil selling for Tk 165-167 per liter.

Over the last month, the price of open soybean oil has risen by 11%, while palm oil prices have increased by 11.5%. These price hikes reflect an upward trend in edible oil prices in both the international and domestic markets.