The country's apex trade advocacy group seeks withdrawal of VAT on imported edible oil for the next three months to bring normalcy in the volatile market.
It made the call at a meeting hosted by the Federation of Bangladesh Chambers of Commerce and Industries (FBCCI) at its office on Monday.
Importers, millers, refiners, wholesalers and leaders of different market committees sat to discuss the recent edible oil market situation.
The meeting was convened in the wake of rising edible oil prices for the past 10 days as soybean oil hit Tk 175-185 a litre and palm oil Tk 165-170.
Meanwhile, most of the groceries have claimed they are not getting branded oil from distributors despite placing orders a week ago.
FBCCI president Md Jashim Uddin requested the government to immediately adjust VAT on imported edible oil following a similar move in neighbouring India.
"India has adjusted VAT and duty on edible oil three times in recent months. Bangladesh should also go for such adjustment to bring equilibrium in the market."
The FBCCI chief also said the government should introduce bond system to release imported edible oil to stop price manipulation.
Mr Jashim claims some shrewd businessmen are selling oil at much higher than the government-fixed rates.
"To protect this sharp practice, the FBCCI itself will form a market-monitoring cell," he asserts.
The trade leader urged the incumbent committee to monitor the market on a regular basis, saying that edible oil should not be sold in loose form.
Meghna Group senior asst general manager Taslim Shahriar claims oil prices rose by 61 per cent globally in the last one year when it has increased by 21 per cent in Bangladesh.
S Alam Group senior general manager Kazi Salahuddin Ahammad demands VAT withdrawal from edible oil to control this price spiral.
TK Group director Shafiul Taslim points out that the government earns Tk 25-27 in revenue from per-litre soybean oil. "VAT relief can help end the crisis till Ramadan."
Haji Md Golam Mawla, president of Bangladesh association of edible oil wholesalers, calls for a stable supply of edible oil from refiners.
City Group director Biswajit Saha claim there is no supply shortage from mills' end. "Our company is supplying 2,500 tonnes of oil daily."
Meanwhile, Bangladesh Shop Owners Association president Md Helal Uddin suggested fixing the price of cooking oil in every 15 days.
The edible oil market went volatile from February 26 following refiners' new proposal to raise maximum retail prices of edible oils amid the beginning of the Russia-Ukraine war.
A February 28 FE report showed unscrupulous traders were extracting soybean oil from branded five-litre jars, and selling it in loose form for more profit.
The government's consumer rights protection directorate asked edible-oil refiners on March 03 to furnish the import, stock and delivery-related information along with customs documents of cooking oils by March 07.
On March 06, Supreme Court lawyers Monir Hossain, Syed Mohidul Kabir and Mohammad Ullah filed a petition with the High Court seeking directives upon state bodies concerned to form a monitoring cell and formulate policies for controlling soybean oil prices.
The plea was placed before an HC bench for hearing on Sunday, but it fixed March 07 for the same, said Mr Kabir.
Commerce secretary, home secretary, Bangladesh Competition Commission director general, consumer rights protection directorate director general, FBCCI president and TCB chairman, among others, were made respondents in the writ.
According to the Trading Corporation of Bangladesh (TCB), the current prices of loose edible oils are 45-54 per cent higher than that of a year ago.
It is 28-30 per cent for branded oil.
Bangladesh annually imports 2.2-2.6-million tonnes of edible oils, including 0.7-0.8-million tonnes of soybean oil and 1.4-1.6-million tonnes of palm oil.
Import meets more than 95 per cent of the local demand.
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