No plan to hike edible oil prices for now: Muktadir

Commerce Minister Khandakar Abdul Muktadir on Wednesday said the government has no immediate plan to raise edible oil prices, expressing hope that the market will remain stable around and during Ramadan.

The government is working to ensure adequate supplies of import-dependent essential commodities, he said while talking to reporters at the Secretariat.

Muktadir said the government has assessed supply conditions for such goods in consultation with importers, taking into account the upcoming Ramadan.

Adequate supplies of edible oil, chickpeas, lentils and sugar are in the import pipeline, which he said will be sufficient to keep the market stable.

Asked about a proposal to increase edible oil prices and the possibility of a hike before Ramadan, the minister said, “No, there is no such plan at the moment.”

He said prices of oil imported from Brazil, Indonesia and Malaysia depend on prices in the countries of origin and transportation costs. “Any increase in either could push up import prices, while a decline could bring prices down.”

The government cannot predict the international situation before Ramadan, Muktadir said, adding that war or other unforeseen circumstances could lead to freight costs, affecting commodity prices.

The government is monitoring the situation to prevent sudden supply shortages and is working to maintain a stable supply chain through adequate bookings and stocks in the import pipeline, he said.

However, the government cannot force private-sector traders to book goods in advance, Muktadir said, noting that international prices fluctuate.

He questioned who will bear the losses if traders are forced to book at a fixed price but international prices fall before letters of credit (LCs) are opened.

Freight charges are also determined when goods are loaded onto ships, making it difficult to fix all costs in advance, the minister added.

Asked whether the government will offer additional facilities for opening LCs ahead of Ramadan, he said there is no need for such measures at present. “The government will intervene if traders report any obstacles,” he added.

On chickpeas selling at Tk 115-120 per kg, Muktadir said international prices have risen somewhat, and the government is discussing the matter with importers to explore ways to address it.

Regarding seasonal price fluctuations, he said Bangladesh has yet to develop a supply system capable of keeping the prices of all commodities stable throughout the year.�"UNB