Kitchen markets in Dhaka are in the grip of an edible oil crisis, with chaotic price fluctuations and supply inconsistencies disrupting daily life of low-income consumers, who are already struggling with rising inflation.

Prices of both the soya bean and palm oil have been increasing almost every day and the availability of packaged item almost went out.

The unpackaged soya bean and palm oil, often a more affordable option for low-income families, had also become significantly more expensive over the past two weeks.

Retailers reported that suppliers had significantly reduced the supply of edible oil and pricing consistency was absent at all levels, including wholesale and retail.

‘We are not receiving the required quantity of edible oil from suppliers and at the same time, retailers are being forced to purchase it at high prices from distributors,’ Mizanur Rahman, a retailer at Karwan Bazar, told New Age on Friday.

He said that the supply of packaged soya bean oil had drastically fallen in Dhaka’s kitchen markets and in most cases, distributors were charging prices higher than the retail cost labelled on the product.

The prices of edible oil increased by Tk 7-10 a litre in past one week and unpackaged soya bean oil sold for Tk 170-175 a litre while the packaged item sold for Tk 175-178 a litre on Friday.

A five-litre bottle of soya bean oil sold for Tk 850 on the city markets.

Palm oil sold for Tk 170-175 a litre on the city markets on the day.

Recently, the vegetable oil refiners’ association has sent a letter to the Trade and Tariff Commission seeking upward revision of edible oil prices, saying that the prices of both the soya bean and palm oil went up on the international market.

In the letter, refiners also said that traders were proceeding cautiously with opening letters of credit for importing edible oil due to the government’s lack of decision on price adjustments on the local market.

An official from a large edible oil refinery company in the country, who wished to remain anonymous, said that the prices of both soya bean and palm oil had risen on the international market, with the price of palm oil unexpectedly surpassing that of soybean oil.

He said that refiners reduced the supply of packaged items to avoid losses from producing bottles, as the local prices had not been adjusted in line with international price increases.

He also claimed that the supply of unpackaged edible oil remained available.