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The Unprecedented Price Hike of oil In Bangladesh

Supply orders are essential for the distribution of edible oils. They have been used to help Chattogram’s prices rise, so they are so important.The Khatunganj refiners send out a supply order (SO) for specific dealers. People who buy edible oil from refining plants can get a certain amount from this document.On the other hand, Dealers don’t buy cooking oil with the document. Instead, they sell it to someone else. Many people buy and then sell the document first. Then, it is used to go pick up refined oil.Non-bottled cooking oil prices go up because people buy and sell the document.

It was possible because edible oil refiners don’t advertise the prices of the SO in any of their ads.Businesses in the area say that the refineries are breaking the law by not telling them this information.

 

The actual reasons:

The City Group’s Biswajit Saha says there is no mention of the price of SOs. Inthat case, we’re OK with it as long as other mills do the same.Some people make a lot of money when there aren’t enough edible oils in the global supply chain, say, market insiders.There are now at least five times as many SOs changing hands because Russia invaded Ukraine, which has caused the price of edible oil to go up a lot.Wholesalers say they make between Tk 250 and Tk 500 every maund [37.32 kg] out of thin air.

Efforts were made in 2011 to stop market manipulation and keep the market stable by putting SOs in place. They say it hasn’t worked.”Edible oils, sugar, wheat, and onions” are sold through the SOs in Bangladesh.

In the words of Biswajit Saha, the CEO of City Group: “Our selected dealers buy SOs from us and pick up the goods from the mill in 15 days. This is illegal.” Legally, they can’t sell it to anyone, so they can’t do that. Once it’s out of our hands, we’re out of the race.

“Administrators should look into whether these SOs were transferred in the wrong way.”

In the middle of February, traders could buy a ton of SO palm oil for Tk 5,400 from a refiner. At the end of February, palm oil’s price went up by 500 Tk per pound. The slip was sold for 5,900 Tk. An unprocessed liter of edible oil could have cost as little as Tk 13 less if there were no middlemen.”

A lot of people make extra money by buying SOs. Most of the time, they make two to three taka per maund. It’s a different story this time around, though, because of things like the Ukraine-Russian conflict and rising prices in the world.CAB’s president, SM Nazar Hossain, says that it’s the job of every consumer to protect their interests.

Mill owners must put the prices of their products on SOs, and so should not be sold by dealers or the owners of the mills that make them.

 

The government needs to keep an eye on these things and bring the people who aren’t being honest to justice regularly; essential goods can’t be controlled until the price is set.In addition, Akhter said that the government would look into the omission of prices from SOS.

Tk 135 and Tk 180 were the prices set by the government to buy palm oil at the store. Yesterday, they bought Taka 140 and Taka 180 at the stores in Chattagram.

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