DHAKA, Feb 26 Asia Pulse - The importers and wholesalers of edible oils agreed to keep oil prices stable till March 9, as a meeting between the government and the traders Monday fixed the selling rates to contain an overheating market.
Under the agreement, the price of soybean oil has been set at retail level at maximum Tk 106 (US$1.55) per kilogram while the maximum retail price of palm oil at Tk 99 per kg.
According to decision of the meeting, held at the Commerce Ministry with Advisor Dr. Hossain Zillur Rahman in the chair, they fixed mill-gate price of soybean oil at Tk 103.50 and palm oil at Tk 96.50 per kg.
Vice-president of Bangladesh Vegetable Oil Refiners Association and City Group Chairman Fazlur Rahman announced the mill-gate rates while wholesalers Association general secretary Abul Hashem set the retail prices.
The local City Group imports most bulk quantities of the edible oils. The City Group chairman said the import prices are Tk 103 and 96 respectively for soybean and palm oil.
The trader-leaders said they would sit with the Commerce Advisor on March 9 for a review of the prices.
Bangladesh Bank Deputy Governor, NBR Chairman, BDR Director General and other senior officials of different government agencies were present at the crucial meeting, held against the backdrop of galloping prices of essentials, including oils.
Commerce Advisor Hossain Zillur said the government has decided to impose a lock-in strategy on the edible oil market to keep the prices stable.
"We have discussed with the traders and want to set a negotiated price in the case of edible oil," he said, adding that international edible market is so much volatile.
In this context, he mentioned that in neighbouring India per-kg soybean oil now sells at a price equivalent to Bangladeshi Tk 120.68.
He said a high-powered institutional market-monitoring committee would be formed, headed by him, with members drawn from Bangladesh Bank, NBR, BDR, and representatives of importers and wholesalers associations.
The government has made effort to keep the prices of four food items stable on priority basis, he told the meeting. The items are rice, lentils, oils and wheat.
The economist-turned commerce adviser of the caretaker government noted that edible oil market would be strictly monitored.
Incidentally, the tough stance came in the wake of the recent price spirals, largely seen as unreasonable--notwithstanding international market volatility.
[Source:Yahoo! Finace]