Wholesale prices of edible oil fall in Khatunganj

Edible oil prices declined by nearly 6 percent at the wholesale markets in Khatunganj, a trading hub in the port city, in 10 days because of the falling global prices of the commodity.

Importers and wholesale traders fear incurring a loss due to the price fall, which, they said, is yet to have any impact on the retail market.

Every maund (37.32 kilogram) of non-branded palm oil was traded at Tk 2,550 in Khatunganj yesterday, down from Tk 2,720 on February 15 while the rates were Tk 2,930 and Tk 3,000 for soybean oil.

Prices of each tonne of crude palm oil dropped by nearly $80 and soybean oil by $90 in Malaysia and Indonesia in the last three weeks, said Tariq Ahmed, director for operations and marketing at TK Group of Industries, one of the leading Bangladeshi importers. According to the Malaysian news portal The Star Online, prices of Malaysian crude palm oil hit a two-week low on February 13. On the day, the benchmark palm oil futures for April delivery on the Bursa Malaysia Derivatives Exchange fell 1.2 percent at $682.71 a tonne at the close of trade, according to The Star Online.

On February 17, Malaysian crude palm oil price dropped to its lowest in three months at $642.33, on expectation of rising production and slow export demand, the news portal reported. Most of the Bangladeshi importers fear incurring losses as the products were bought earlier at higher rates, Ahmed said.

The unstable geo political situation of the globe has caused the price fall, he said. Md Ibrahim, proprietor of M Hossain & Brothers, a wholesaler, said the price fall has prompted him to sell out his products at reduced rates now.

Yesterday, the retailers in the city's kitchen market were found selling palm oil at Tk 78 a litre and soybean at Tk 95 a litre, which were almost the same three weeks ago, businesses said. Md Alam, a retailer at Karnaphuli CDA Market, said he is selling oil from his stock.