Dhaka, Sept 3 (V7N) – Commerce Minister Khandakar Abdul Muktadir today said the price of soybean oil will be adjusted based on international market prices, as well as domestic production and processing costs, while assuring that the government is actively monitoring supply chains to prevent artificial shortages.

"Edible oil prices are determined in line with the international market, taking into account domestic production and processing costs," he said while talking to journalists at Mohakhali. The minister explained that the Ministry of Commerce follows a specific formula to determine the final price, which adds freight, unloading costs, insurance, refinery processing costs and transport wastage to the Free on Board (FOB) price. "Ordinary people and media professionals can also easily verify the calculation by looking at international price indices," he added.

Addressing concerns over potential supply disruptions, Muktadir noted that the edible oil business in Bangladesh is largely dependent on the private sector. "If importers incur losses for a prolonged period, it could lead to supply disruptions in the market. So, a reasonable balance has to be maintained to ensure uninterrupted supply and prevent entrepreneurs from withdrawing from the business due to losses," he said.

Describing government measures to keep the market stable, the minister said approximately 7.8 million families are being provided with essential commodities at subsidised prices every month through the Trading Corporation of Bangladesh (TCB). Additionally, products are sold through open trucks during the two Eid festivals, while regular Open Market Sale (OMS) activities are continuing under the Ministry of Food.

The government is continuously monitoring the opening of letters of credit (LCs) and the import supply pipeline to prevent any artificial shortage in the market.

Regarding the sugar market, Muktadir acknowledged temporary production disruptions due to gas supply problems at refineries. "Meghna Group, one of the country's leading refiners, has sufficient raw sugar in stock. Production was temporarily disrupted due to utility-related problems, but the supply situation will return to normal soon".

On fragrant rice exports, the minister said only around 2,500 tonnes of rice had been exported so far against the approved quantity. "Approvals for those who failed to export rice within the stipulated time will be cancelled or substantially reduced". This follows a surge in domestic aromatic rice prices, which have risen from around Tk130 to as high as Tk230 per kg due to reduced supply.

On the pay scale of government employees, Muktadir said their salaries had not been adjusted for 11 years, making the move reasonable in view of prevailing inflation. He assured that the new pay scale would be implemented gradually by July next year, and there was no reason to fear market distortions or a sudden rise in prices.

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