Ramadan market: Soybean oil crisis presist, date prices drop

With the holy month of Ramadan approaching, consumers in Bangladesh are facing contrasting market trends for essential commodities. While bottled soybean oil remains largely unavailable, leading to soaring loose oil prices, the price of dates has significantly dropped due to a surge in imports.

Bottled Soybean Oil Crisis Persists

Despite increased imports and stable global edible oil prices, consumers are struggling to find bottled soybean oil in grocery stores. Visits to markets in Dhaka and Chattogram revealed a severe shortage, particularly in the 5-litre variant. The crisis, persisting for weeks, has allowed traders to hike the price of loose oil.

According to the Trading Corporation of Bangladesh (TCB), loose soybean oil prices have surged by Tk 15 to Tk 17 per litre in a month, now selling at Tk 185-190 per litre, which is Tk 28 to Tk 33 higher than the government-fixed price. Interestingly, the loose oil price has surpassed bottled oil’s price, which is officially set at Tk 175 per litre, with a five-litre bottle priced at Tk 852. Some retailers with existing stock are charging extra prices for bottled oil.

Consumers, like Ariful Islam from Shewrapara in Dhaka, have expressed frustration over the unavailability of bottled oil despite reports of increased imports. Shopkeepers attribute the crisis to limited supply and rapid sellouts.

Import Figures and Market Assurances

According to Bangladesh Trade and Tariff Commission (BTTC), the country’s annual edible oil demand is 2.2 million tonnes, while local production meets only 250,000 tonnes, with the rest imported, mainly as palm and soybean oil.

To address concerns, the Bangladesh Vegetable Oil Refiners and Vanaspati Manufacturers Association stated on 16 February that its affiliated entities are supplying more oil than usual for Ramadan. The association dismissed the notion of a shortage, blaming stockpiling by unscrupulous traders. It assured that the crisis would ease soon, citing stable international oil prices and ongoing imports.

Despite assurances, market shortages persist. Retailers in Chattogram report receiving only two cartons against an order of 20 cartons, keeping prices high.

Increased Imports but Delayed Shipments

In January, Bangladesh imported a record 117,000 tonnes of soybean oil, the highest in six years, along with 300,000 tonnes of soybean seeds capable of producing 45,000 tonnes of oil. However, imports in February were initially low, with only 25,000 tonnes arriving in the first three weeks. By 26 February, total imports stood at 57,000 tonnes, with an additional 130,000 tonnes expected soon. Wholesale prices in Chattogram have already dropped by Tk 4-5 per litre due to news of upcoming supplies.

According to Mustafa Haider, director of TK Group, shipment delays in Argentine ports postponed February’s scheduled imports, but tankers have now started arriving, ensuring that supply stabilizes.

Date Prices Drop Amid Huge Imports

In contrast to the soybean oil crisis, date prices have significantly dropped due to a surge in imports. On Saturday, the lowest price for dates in Dhaka was Tk 250 per kg, while mid-range varieties ranged from Tk 600 to Tk 900 per kg. Premium-quality dates were priced at Tk 1,600 per kg. Compared to last year, prices have dropped by Tk 100 to Tk 400 per kg.

Traders attribute this decline to reduced import duties. At the beginning of this year, the import duty on dates was lowered from 25% to 15%, and customs valuation reduced by 8% to 25%, leading to a doubling of imports compared to the previous year.

Import Figures and Market Impact

Customs data shows that 53,768 tonnes of dates were imported between July 1 and February 22 of the current fiscal year (FY 2024-25), up from 25,085 tonnes in the same period last year. The fiscal year 2022-23 saw a significantly higher import volume of 81,684 tonnes.

Md Mohiuddin, General Secretary of the Chaktai-Khatunganj Aratdar General Traders Welfare Association, stated that substantial imports and leftover stock from last year have contributed to the declining prices, keeping dates affordable for consumers.

Popular date varieties imported from Saudi Arabia, Iran, Egypt, Algeria, Tunisia, and Dubai include Zahidi, Sayedi, Faridi, Safai, Rashidi, Mashrukh, Mabrur, Nagal, Kudri, Ajwa, Medjool, Maryam, Dabbas, and Sukkari.

At Dhaka’s Badamtoli fruit market, a five-kg pack of Nagal dates is selling for Tk 1,400-1,500, while Tunisian Tetco Faridi dates cost Tk 2,100-2,200 per five-kg pack. Iranian Maryam dates are priced at Tk 4,000-5,000 for a five-kg pack, while Saudi Ajwa dates cost Tk 4,000-4,500 per five-kg pack.

As Ramadan approaches, the market presents a mixed picture for consumers. While the crisis of bottled soybean oil persists despite increased imports, the surplus of dates has led to a significant drop in prices, offering some relief. Authorities continue to monitor the edible oil situation, while traders anticipate that additional imports will stabilize the market in the coming weeks.