Retailers in Dhaka and several districts across Bangladesh are reporting a sharp shortfall in the supply of bottled soybean oil. As refining companies scale back deliveries, the supply crunch is beginning to impact general consumers, accompanied by a parallel rise in loose soybean and palm oil prices over the past week.
The Bangladesh Vegetable Oil Refining & Vegetable Fat Manufacturers Association has submitted a formal appeal to the Ministry of Commerce seeking an immediate upward price adjustment. Meanwhile, retail shopkeepers note that distributors are rationing stock in anticipation of higher mandated retail prices.
A field check across major wholesale and retail hubs highlights growing supply gaps:
Retail & Supermarkets: At a prominent retail chain outlet in Dhanmondi, sales were capped at a maximum of two 5-liter bottles per customer due to stock limitations. Supermarket representatives confirmed receiving nearly 30% below their total order requirements over the last three weeks.
Wholesale Hubs: Traders at Moulvibazar and Karwan Bazar noted that while some refiners maintain steady deliveries, others have cut allocations significantly. Reduced profit margins on 1-liter and 2-liter bottles following the previous price revision have also led several retailers to scale back orders.
In Rajshahi’s Saheb Bazar, retailers reported receiving barely 20 cartons against orders for 50 cartons, attributing part of the supply disruption to rising transport and fuel overheads.
Refiners argued that despite the government setting the Maximum Retail Price (MRP) at BDT 204 per liter on September 3, international prices have continued to climb from $1,200 to $1,325 per metric ton over the past six months. Importers claim they are currently absorbing losses of BDT 18 to 19 per liter.
The association warned that without a timely price adjustment aligned with global market dynamics, importers may lose the financial capacity to open new Letters of Credit (LCs), threatening broader supply chain stability in the coming months.
