25% regulatory duty imposed on export of rice bran oil

Dhaka, 9 Feb  -The government has imposed 25% regulatory duty (RD) on the export of rice bran oil, aiming to shore up domestic supplies.

A gazette notification was issued in this regard on Sunday.

It said as per the power conferred by the Customs Act, 2023 and in consultation with the National Board of Revenue (NBR) 25% regulatory duty has been imposed on the export of rice bran oil and its fractions.

This notification will come into force immediately, it added.

Bangladesh is currently facing a severe edible oil crisis, with soaring prices and supply shortages significantly impacting consumers nationwide, particularly ahead of the holy month of Ramadan.

In Dhaka's kitchen markets, both packaged and unpackaged soybean and palm oils have seen substantial price hikes. Unpackaged soybean oil now retails between Tk 170-175 per liter, while packaged variants are priced at Tk 175-178 per liter. A five-liter bottle of soybean oil has surged to Tk 850. Similarly, palm oil is being sold for Tk 170-175 per liter.

Retailers report a sharp decline in edible oil supplies from distributors, forcing them to purchase at inflated prices. The supply crunch is primarily attributed to refiners reducing the availability of packaged products to mitigate losses, as domestic prices have not been adjusted in line with rising international market rates.

According to industry sources, global prices of both soybean and palm oil have increased significantly, with palm oil unexpectedly surpassing soybean oil in cost.

In response, the Bangladesh Vegetable Oil Refiners and Vanaspati Manufacturers Association has petitioned the Trade and Tariff Commission for a price adjustment, citing the sharp rise in international prices. They also pointed out that traders are reluctant to open letters of credit for imports due to the government's indecision on adjusting local prices.

Meanwhile, the Directorate of National Consumer Rights Protection (DNCRP) has stated that, despite sufficient stocks to meet demand until Ramadan, the edible oil market remains volatile. The DNCRP emphasized that there is no justification for a price hike before Ramadan, given the current stock levels.

This crisis is further exacerbated by global factors, including adverse weather conditions affecting key oil-producing nations and geopolitical tensions disrupting supply chains. These challenges have led to a 25% increase in edible oil prices internationally, causing local traders to incur losses due to government-imposed price caps.

The ongoing edible oil crisis in Bangladesh highlights the urgent need for effective strategies to stabilize the market, protect consumers, and ensure the steady availability of essential commodities.