CHATTOGRAM, Dec 30: Cooking oil prices rose sharply at wholesale market of Chattogram Port City during last one month though the government exempted customs duty and Value Added Tax (VAT).
According to traders, cooking oil prices increased recently at wholesale market as well as retail outlets in the port city.
Sources said, the prices of palm oil and soyabean oil increased at the rate of over Tk 30 per litre.
They blamed rising cooking oil prices in the international market for the domestic market situation.
They claimed that in the international market, Malaysia's palm oil stocks declined by 2.6 percent to 1.84 million metric tonnes.
Malaysia's crude palm oil production dropped by 9.8 percent to 1.62 million tonnes, the lowest since 2020, they said, adding due to adverse weather disrupting harvesting and transportation. Exports fell by 14.7 per cent to 1.49 million tonnes due to low demand and global uncertainties.
Moreover, recent increase in export levies by Indonesia to ensure domestic supply has added to global price volatility.
Meanwhile, the edible oil traders alleged that a syndicate is active for hiking prices in the domestic market.
The syndicate reduced supply of edible oil in the market to increase prices.
Businessmen alleged that the manufacturers sold Delivery Order (DO) slip to the dealers who delivered it to other buyers.
Following change of hands prices shoot up for the consumers.
The syndicate has created an artificial crisis of cooking oil.
Palm Oil is imported from Indonesia and Malaysia while the Soyabean is imported from Brazil, Argentina and the USA.
The syndicate claimed that the prices of cooking oils increased in the global market.
Meanwhile, the government has exempted all edible oil, including canola and sunflower oil, from duty, tax, and VAT until March 31, 2025, to increase supply and stabilise cooking oil price.
In order to keep the market supply normal and the prices at a tolerable level during the holy month of Ramadan, the National Board of Revenue (NBR) has exempted duty and VAT on cooking oils.
