Move underway to import refined soybean oil in bulk

A move is underway to import refined soybean oil in the bulk form to be sold in bottles at subsidised prices under the TCB's sale drives.

The state-run Trading Corporation of Bangladesh (TCB) in a recent letter sought consent from the Ministry of Commerce to this effect.

The corporation has initiated such a move in fear of its possible shortfall of bottled soybean oil in the domestic market, said a high official.

"We're now working on the issue. No decision has been taken yet in this connection" a senior commerce ministry official said.

The TCB is currently conducting its sales drive of some items like soyabean oil, lentil, and sugar.

Moreover, it sells chickpeas and dates at reasonable rates during the holy month of Ramadan, while onion and potato are sold during lean periods or any emergency situation.

It has recently decided to include five more items in the TCB's (trading Corporation of Bangladesh) sales drive of essential items -- Tea, salt, detergent, and two types of soaps from November next.

It procures the items from local/ international sources in accordance with the government's procurement rules.

The Corporation failed to procure bottled soybean oil from global suppliers for a long time despite floating tenders repeatedly.

Besides, prices of bottled soybean oil remain higher in the global market, the MoC letter mentioned.

On the other hand, prices of bulk soybean oil are comparatively lower in the international market.

So, after the purchase of refined soybean from the global market, it can be sold in bottled form, the letter said, adding that the overall procurement price of the same would be comparatively low.

The TCB in its board meeting recently recommended importing refined soybean oil in bulk from the international market for its sales drive.

Currently, the TCB needs more or less 20 million litres of soybean oil per month and it procures the same from the local suppliers for selling it among the smart-card holder families and other consumers under its truck sales.

The proposed procurement would also help ensure uninterrupted supply of edible oil for the TCB's sales drive, he added.

At present, open bids are invited to procure such products from both local and international sources.

But, the TCB was unable to buy its required volume of soybean, palm Oil and rice bran oil in absence of genuine suppliers.

Despite making hectic efforts, the TCB could not procure bottled soybean oil from international sources, according to a TCB source.

In many cases, some genuine suppliers are asking higher prices for bottled soybean oil than the normal rates.

Local suppliers are also reluctant to take part in the bidding as the government-fixed rates of the same are much lower than that of the open market.

As a result, the TCB often finds itself in a difficult situation to procure its required commodities like soybean and sugar for the 10 million cardholders.

To purchase adequate quantities of essentials, including edible oil, from abroad, the TCB is trying to activate its previous memoranda of understanding (MoUs) with four different countries namely Canada, Russia, India and Nepal.

The TCB signed such MoUs with Canada, India, Russia and Nepal in March 2011, November 2018, March 2024 and March 2020 respectively.

Another TCB source suggested that the MoUs would be activated with an eye to import the key items from the international market.

Items like edible oil, lentil and sugar will be available at affordable prices if the MoUs are renewed, it added.

Meanwhile, an estimated 20-million litres of edible oil, 20,000 tonnes of lentils and 10,000 tonnes of sugar are required per month under the TCB's sales drives.

When contacted, Commerce Secretary Mahbubur Rahman said: "We are trying to utilise the annual capacity of the Sena Edible Oil Industry (SEOI) so that we can intervene in the edible oil market."

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