Manipulators warned of stern action, heavy penalties

Amid warning of stern actions against the ongoing anarchic situation on the edible-oil market, refiners on Sunday assured bringing normalcy soon.

Yet, the consumers would have to go through the ongoing bitter experience for at least one and a half weeks.

Shifting blame to stockpiling by 'certain traders', refiners in a statement said they were importing huge edible oils and it would take 7-10 days to reach the retail market, which, they believe, would help resolve the crisis.

According to market reports, soybean-oil bottles were still out of the shelves in the city groceries but the consumers were provided with the essential cooking oil either at much higher prices or in exchange for a conditional combo package of other, often unwanted, items.

However, Bangladesh Vegetable Oil Refiners and Vanaspati Manufacturers' Association (BVORVMA) in the statement claimed that there are adequate supplies of edible oils in the market.

Amid rising concerns over the market manipulation, the national consumers' rights-protection- body chief on the day warned of stern actions with heavy penalties against the manipulators.

In response to concerns over the possibilities of further deepening of the crisis, the association reassured consumers and stakeholders that there is no reason for such concern as the member-companies were actively working on meeting the increased demand for edible oils ahead of the holy month of Ramadan.

It also stated that the current supply of edible oils is sufficient to meet the market needs, and there is no possibility of a shortage.

The association attributed the perceived crisis to stockpiling tendencies by certain traders, which they believe will be resolved soon.

Furthermore, it said, the international prices of crude soybean and palm oil remained static, brushing aside the possibilities of abnormal profiteering.

Leading local edible oil producers like City Group, Meghna Group, TK Group, and Bangladesh Edible Oil Ltd. have imported significantly larger quantities of edible oils to meet the high demand, says the statement.

“These supplies are expected to reach the market within the next 7-10 days, further stabilising the situation”.

The association urged consumers and traders to refrain from panic buying, emphasising that purchasing excessive amounts of oils beyond immediate needs could exacerbate the situation.

Meanwhile, the Directorate of National Consumer Rights Protection (DNCRP) on the same day issued a stern warning to edible-oil suppliers, stating that strict actions will be imposed if they continue to impose conditions on the sale of edible oils.

Its Director-General Mohammad Alim Akhtar Khan made the announcement during a meeting at the Trading Corporation of Bangladesh (TCB) building in the city on Sunday.

The meeting, organised to discuss the stability of edible-oil prices and supply ahead of the holy month of Ramadan, addressed concerns over the unethical practice of forcing consumers to purchase additional products, such as rice, flour, and tea, as a condition for buying oil.

Mr Khan says that such practices are unacceptable and will be subject to heavy penalties for both the companies and dealers involved.

"Evidence of these conditions has been found in the market, although oil refining companies deny it. If we find any such practices, we will take strict action against the companies and dealers," he added.

Representatives from stakeholders, including wholesalers, BVORVMA, retailers, and the Consumers Association of Bangladesh (CAB) attended the meeting.

DNCRP Director Fakir Muhammad Monowar Hossain said a recent inspection of four markets in the capital revealed a shortage of edible oil at retail shops with dealers and wholesalers reducing supplies.

He also alleged that the wholesalers were failing to provide receipts and delaying deliveries.

The DNCRP DG further said the country relies on six refining companies for its edible oil supply, which has been inconsistent over the past three to four months.

Hazi Md Golam Mowla, president of Bangladesh Edible Oil Wholesalers' Association, urged refiners to avoid unnecessary price hikes and help ensure a stable market.

He also calls for leniency towards small businesses in case of minor discrepancies.

Retailers at the New Market expressed frustration over the shortage of 5-litre containers and the imposition of additional purchase conditions.

Abu Taher, general secretary of New Market, said: "When we order oil, we are forced to buy other products like rice, flour, and tea. This is unacceptable."

In response, DG Mr Khan has directed oil companies to report daily production figures to the DNCRP and develop software to streamline the process.

He also warned that conditional sales will be a punishable offense.

Shafiul Azhar Taslim, Director of TK Group, explained that delays in soybean and palm oil imports due to natural disasters in Brazil disrupted the supply chain.

However, he assured that a major shipment is expected to arrive by February 24, and the oil crisis will be resolved after February 26.

The edible-oil market became volatile again last week as most refiners squeezed supply to groceries.

Many distributors allegedly sold stored oil at higher rates. On the other hand, some grocers were found selling copycat products at Tk 190-210 a litre against the official price of Tk 175 per litre, according to kitchen market sources.

Apart from soybean oil, palm oil prices also shot up by Tk 10-15 a litre, with loose oil vendors in Dhaka's kitchen markets selling it at Tk 175-185 per litre.

SM Nazer Hossain, vice president of the Consumers Association of Bangladesh (CAB), said that despite all efforts by the government, the edible-oil market has become volatile amid loose market monitoring.

He said, “the government should be strict towards the wrongdoers to bring normalcy in the edible oil and other daily essentials market”.

Bangladesh needs 2.2-2.5 million tonnes of edible oil annually - 95 per cent of the demand is met through imports.

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