Soybean oil price jump on impact of Indonesia palm oil export ban

The edible oil price has increased sharply in the domestic market in the last two days after Indonesia, the world’s top palm oil producer, announced an export ban.

Indonesia announced on Friday a ban on palm oil exports from April 28  in a bid to stymie the soaring domestic price of cooking oil. However, analysts expect the ban to be a temporary one lasting weeks rather than months.

The soybean oil (unpacked) which had been selling at Tk 192-195 per litre in the capital, started selling for Tk 200 per litre on Monday.

Some areas of the capital are not getting oil at higher prices even. Not only unpacked Soybean oil, but also bottled oil is seeing a shortage.

Buyers at Shanti Nagar Bazar complained that shoppers are creating artificial crises to sell oil at higher prices.

A retailer there told UNB that they sold loose Soybean oil at Tk 175 per liter on Sunday morning. In the afternoon on the same day, they bought the same edible oil from the wholesaler at Tk 182 per liter. On Monday morning the same oil the retailer bought at Tk 192 per liter.

Talking to UNB, an additional secretary of commerce ministry in additional charge on import cell said that the Commerce inistry is working to control the price of edible oil.

The ministry will hold a meeting with business leaders regarding alternative sources of edible oil to meet the demand of palm oil, he said, maintaining anonymity.

He also hinted that a huge volume of edible oil has been imported or LCs have been opened to import, so there is no reason for price hike or to worry about shortages.

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