Bangladesh: No progress on reducing edible oil prices after two rounds of talks

Despite two rounds of discussions with traders, no agreement was reached on reducing edible oil prices in Bangladesh.

The first meeting took place at the Ministry of Commerce on Thursday, followed by a second round on Sunday, July 27, 2025, at the Bangladesh Trade and Tariff Commission.

Sources from the Tariff Commission meeting revealed that prolonged discussions failed to produce a decision on price reductions.

Traders’ objections led to a deadlock in both meetings, with similar issues stalling talks on the supply situation and pricing of edible oil.

The meetings saw participation from representatives of the Ministry of Commerce, Tariff Commission, Consumer Rights Protection Directorate, Competition Commission, and major edible oil companies, including City, Meghna, TK, and Bashundhara.

A report prepared by the Tariff Commission, presented during the first meeting, analysed local and international edible oil markets.

It noted that on July 15, 2025, the FOB price of crude soybean oil was $1,079 and palm oil was $1,017, compared to $1,003 and $1,052, respectively, on April 15, 2025.

This reflects a 0.7 per cent increase in soybean oil prices and a 3 per cent decrease in palm oil prices in the international market.

Based on a uniform pricing system, the report suggested potential price reductions of Tk 19 per litre for open palm oil and Tk 1 per litre for soybean oil.

Traders, however, proposed aligning price cuts with these figures but argued that the Tariff Commission’s report misrepresented the current international market. They claimed it failed to account for recent price trends, rendering the proposed reductions illogical.

Traders further criticized the government for overlooking import and production VAT in calculating soybean oil production costs and for inaccuracies in assessing international prices, leading to flawed calculations.

On April 15, 2025, the Ministry of Commerce set edible oil prices as follows: Tk 189 for a one-litre bottle of soybean oil, Tk 922 for a five-liter bottle, Tk 169 taka for one litre of unbottled soybean oil, and Tk 169 for one litre of palm oil. These prices have remained unchanged since.

Previously, when international edible oil prices rose, traders proactively proposed price increases to the Ministry of Commerce.

However, they did not formally submit these proposals. This time, the Ministry took the initiative to adjust prices but faced resistance from traders, stalling progress.

Tags: soybean oil, prices, palm oil, edible oil, Market, Bangladesh, crude soybean oil