Cooking oil supplied on condition of ‘purchasing other products’

Despite an increase in the supply of soyabean oil, traders are keeping their shelves selectively stocked. Instead of displaying all available bottles, they are reserving the oil for loyal customers—those who purchase additional products alongside the cooking staple.

The reason behind this strategic distribution lies in the conditions set by the marketing company.

According to traders, the company’s representatives provided the oil on the condition that they also purchase a mix of other products, such as noodles, spices, or similar items from the same brand.

As a result, retailers found themselves compelled to bundle the oil with these additional goods, limiting access to only their regular, high-value customers, reports bdnews24.com.

Mizanur Rahman, owner of Alif Store in Shonir Akhara, said: “Everyone has oils, but not displaying them. They won’t do it.”

“The oil is only for the regular customers. No shopkeeper will sell only oil if a customer comes for it. [It’s obvious] that my regular customers will ask me for oil. So, I’ll sell it to them only.”

He complained that the companies adopted a “strategy” to sell bottled oil under the circumstances of ‘-“supply crisis”.

“The company won’t give us oil if we don’t buy the spices. How’s that? I can only sell spices if the customer wants it. Fresh Company asks us to sell noodles along with oil, or else they won’t supply oil. The customer doesn’t want its noodles but wants the one from another company. Now we’re compelled to buy those products. Who knows when we can end selling them.”

Nazrul Islam, owner of Maa-Babar Dowa Departmental Store in Kajla reiterated Mizanur’s words.

He said, “You must take spices or Halim Mix of Fresh Company if you want its oil. But not every customer wants the Halim Mix. We must keep our customers happy. Hence, we’re compelled to buy the oil [from the company].”

“I got soyabean oil worth Tk 6,000 after I purchased grocery items worth Th 13,000. Or else they won’t provide it, what can I do? Now I bought groceries worth Tk 6,500 and got my consignment stuck.

“It wasn’t a problem if the grocery items were the regular ones [which are in high demand]. Now I don’t know when we can end selling all these items.”

Fresh and other bottled oil manufacturing companies, however, denied the allegations brought against them by the retailers.

While some field-level sales representatives (SR) acknowledged they sold oil to the traders on condition of purchasing other grocery items to reach their sales target, most SRs and dealers denied the complaint.

According to the companies, there was no “supply crunch” of edible oil in markets.

The SR and dealers were not instructed to put up conditions for the retailers to buy other products and sell the oil to them.

Rather, they were strictly forbidden to do so.

SUPPLY ‘NOT FIXED’ IN 4 MONTH OF PRICE HIKE

The crisis in edible oil supply began in December last year.

The prices increased at that time when the supply dropped.

On Dec 9, 2024, the interim government increased the prices of bottled soyabean oil by Tk 8 setting it to Tk 175 per litre, unpackaged soyabean oil to Tk 175 per litre and Tk 157 for unpackaged palm oil per litre.

However, it did not address the ongoing crisis.

Soyabean oil bottles began vanishing from the markets as the prices rose. No change in the situation was observed even at the beginning of Ramadan.

Most retailers talk about the crisis of bottled soyabean oil and sell unpackaged ones at a higher price.

According to Bangladesh Bank, soyabean oil imports increased 34 per cent during Ramadan this year.

On Mar 3, the commerce advisor visited the Mohammadpur Town Hall Kitchen market and said the supply would ease in two days. That supply crisis “still exists”.

After a week of Ramadan, some retailers began displaying a small number of oil bottles.

They still claim to receive a small amount of oil from the companies in the second week of Ramadan.

Also, they are selling soyabean oil to regular customers or those buying lots of products together.

The retailers who buy other products from the companies to get the oil supply say that customers pick different products of different companies as per their taste.

If they like the rice from one company, they like the noodles from another.

They may like one company’s Halim Mix but not other spices from that same company. All these push the retailers into trouble.

Several bottles of soyabean oil are displayed in front of a shop in Dhaka’s Karwan Bazar.

"I ONLY SELL OIL TO THOSE WHO TAKE OTHER PRODUCTS"

A sales representative from Jatrabari has admitted to selling cooking oil on a condition: shopkeepers must purchase other company products to fulfil their sales targets.

Speaking to bdnews24.com, he said: “To get oil, shopkeepers must buy a certain amount of other products. The company gives us a target to sell 40 percent of additional products along with the oil. So, even if it's a small amount, they have to take other products as well. The company sets these conditions, and we have to comply.”

"We have to obey our managers' directions. They regularly set different sales targets for us, like bottled water, halim mix, or rice. Last month, the target was to sell water, whereas this month, it is spices. We have to meet these targets, otherwise they will deduct our salary. That's why we only distribute oil to shops that purchase other items."

A dealer from Jatrabari told bdnews24.com, “Our job is to deliver products to the stores. The sales representatives take orders, and we supply them. The SRs are the ones who deal directly with the company.”

“When the orders get placed, the company sends us less oil than what they charged for, adjusting the total bill by including other products along with the oil.”

Ali Hossain, from “Ali Store” in the capital’s Karwan Bazar, said: “The SR will only give me the slip to buy oil if I also buy rice, otherwise, they won’t take my order.”

Although five-litre bottles of soyabean oil were seen in different shops in Karwan Bazar, most of them did not seem to have one or two-litre bottles.

“Messers Ratan Traders” displayed several five-litre bottles, but sales assistant Ashiqur Rahman said they could also provide customers with one and two-litre bottles.

When asked why those bottles were not displayed, he replied: “There’s limited space, so we didn’t put them in the front of the store. Let me know if you need them, and I’ll bring them out.”

Due to the supply shortage, Aynal Hossain, the owner of the B-Baria Departmental Store in Motijheel, has stopped selling bottled oil as he couldn’t make a profit.

He said, “The company rate for oil is Tk 175 per litre. But the maximum retail price printed on the bottle is also Tk 175. If I increase the price by even Tk 1 or 2, the customers scold me. So I have stopped selling oil altogether.”

WHAT COMPETITION COMMISSION SAYS

According to the Competition Act, 2012, consumers cannot be forced to purchase other items while purchasing a certain product.

Anyone who violates this law, whether the manufacturer or the seller, could face penalties.

Bangladesh Competition Commission has received complaints about sellers forcing consumers to buy other products while buying oil.

The commission’s Chairman AHM Ahsan, has announced that an investigation committee has been set up on the matter.

Highlighting the fact that a team has been sent to monitor the market situation, he told bdnews24.com: “Consumers can buy products freely. Manufacturers or sellers cannot force them to buy products in a package or bundle.”

"We have heard about this issue and formed an investigation committee. They have started working in the field. If the allegations are true, we will take action on our own initiative."

The team will also investigate the manufacturers and companies, he added.

‘NO FORCING, JUST REQUEST’

Pusti soyabean oil is marketed by TK Group.

Kamal Ahmed, an SR of the company in Karwan Bazar, claims that they do not compel retailers to purchase other products alongside oil.

"We sell all kinds of products. We request shopkeepers to take other items with the oil. They will sell products to customers anyway.

“If they sell ours, customers will buy them too. That’s why we request them,” he said.

He insisted that there is no coercion.

“If someone claims otherwise, they are lying. If they want only oil, they can take just that. It’s entirely up to them whether they take anything else.”

Siddiqur Rahman, a dealer for TK Group at Karwan Bazar, echoed similar sentiments.

He said, “You will see a notice in my shop that clearly says no one is obligated to buy other products with oil. Whoever wants oil can take it.

“If they want other items, they can take those too. No one is forcing anyone.”

He also noted that the supply has improved. “We are getting more stock now compared with before. Anyone can take whatever they need.”

City Group, which markets Teer soyabean oil, follows a similar approach.

Gias Uddin, an SR from the company at Karwan Bazar, said: “We supply products every day. We provide one carton to shopkeepers at a time.

“Since the supply is limited, we distribute it in small quantities. We deliver oil to different retailers on alternate days."

Gias oversees around 60 stores, and he said he supplies bottled soyabean oil to 30-40 of them daily.

Regarding the condition of purchasing other products, he said: "No, no one can say that. If they buy oil, we only sell oil."

Selim Hossain, manager of AT Traders, a City Group dealer in Karwan Bazar, said: “If someone takes oil from me, they don’t have to buy any other product. Anyone who needs it can take it.

“We still have an entire truckload of oil in stock. If there was a shortage in the market, it wouldn’t just be sitting here.”

Regarding the complaint about bottled soyabean oil being sold with conditions to purchase other products, Taslim Shahriar, senior assistant manager of Fresh Group, told bdnews24.com: “The company’s job is to sell goods, and we are doing that. No specific target has been set.”

He added, “If an SR sells additional items alongside soyabean oil that is his choice. The company is not responsible. Shopkeepers can take only oil if they want.”

Biswajit Saha, director (Regulatory and Corporate Affairs) of City Group, a leading edible oil importer and distributor, told bdnews24.com: “Due to a major tide in Argentina, ships couldn’t arrive on time, which caused a shortage. Oil shipments arrived on the 28th of February and were unloaded the next day.

“After that, they were distributed to the market through the company. The situation was the same for everyone, not just us.”

He claimed that there is no shortage of bottled soyabean oil in the market.

Biswajit said, “We have not imposed any condition requiring the purchase of other products. Neither will the SRs do so. It has been strictly prohibited.

“We have also submitted a written statement to the Directorate of National Consumer Rights Protection.”

He concluded, “There will be no bundling of other products or packages with oil. If shopkeepers are forcing their customers to buy additional items, what can we do?”