Traders Propose Raising Bottled Soybean Oil Price by Tk 14 Per Litre Ahead of Ramadan

Amid discussions on keeping the prices of daily essentials stable during the upcoming Ramadan, traders have proposed raising the price of bottled soybean oil by Tk 14 per litre. They cited the rising price of edible oil in the international market and higher transport costs as the reasons. At the same meeting, importers demanded a reduction in duties and taxes on date imports.

The discussion on Ramadan-focused imports, supply problems and market prices took place at a meeting with Commerce Minister Khandaker Abdul Muktadir last Monday. However, the commerce ministry has not yet taken any decision on raising the soybean oil price, according to meeting sources.

The ministry said the proposal for a duty waiver on dates would be considered after discussion with the National Board of Revenue (NBR). Officials said the internal preparations needed to quickly implement the existing duty-waiver facility on date imports ahead of Ramadan have already been completed.

Earlier, on September 2, the price of bottled soybean oil was raised by Tk 5 per litre and fixed at Tk 204. The prices of loose soybean oil and palm oil were left unchanged at that time.

The then commerce secretary, Md Ataur Rahman Khan, had said importers demanded a price adjustment because edible oil prices and transport costs had risen in the international market. Although traders had proposed a larger increase then as well, the Bangladesh Trade and Tariff Commission had recommended a rise of Tk 10 per litre.

The commerce secretary had also said at the time that whether prices would be raised again before Ramadan would depend on the market situation then. Traders' new proposal now speaks of an increase of Tk 14 per litre.

At the meeting, importers said they currently have to pay around 55 percent in duties and taxes on date imports. They claimed that, alongside high assessment values, rising transport costs are pushing up the total cost of imports, raising fears that date prices in the Ramadan market will move beyond the reach of ordinary buyers.

According to the importers, instability in the Middle East has created complications in transporting goods. Having to use alternative routes has increased transport and supply costs, and if letter-of-credit (LC) complications persist, imports and market supply could be hampered further.

The importers proposed that, instead of fixing a single assessment value for all kinds of dates, the actual quality and market price of the product should be taken into account. In their view, setting an assessment value higher than the real price of ordinary-quality dates increases importers' tax burden, and the impact ultimately falls on retail prices.

At the meeting, the commerce minister stressed building a transparent and rational duty structure that takes into account the variety, quality and price differences of dates. He noted that dates of various kinds come to Bangladesh from around a dozen countries, including Egypt, Saudi Arabia, Iraq and Algeria, and that applying the same assessment value to all of them could be inconsistent with the real situation.

Traders also demanded a more flexible tax system for importing other fruits, not just dates. They said high duties raise the price of imported fruits and put pressure on ordinary consumers' purchasing power. Although fixing duties is the NBR's responsibility, the meeting also raised the need for greater coordination among the concerned government agencies.

The authorities assured the importers that their problems would be reviewed and necessary steps taken. However, a final decision on fixing a new soybean oil price and reducing duties and taxes on date imports will have to await the authorities' next move.