Traders have proposed increasing the prices of edible oil by Tk 10 per litre as the tax exemption deadline on it expired on April 15. Bangladesh Vegetables Oil Refiners' and Vanaspati Manufacturer's Association (BVORVMFA) sent a letter to the senior secretary of the commerce ministry in this regard on Monday. The letter was issued by executive officer of BVORVMFA Nurul Islam Mollah. Dhaka district receives lion's share of remittances so far in current fiscal: BB Report The letter stated that as tax exemption on the import of raw materials and production of edible expired on April 15 so it will be supplied at the prices fixed before the exemption of VAT. As per new rate, a litre bottle of soybean oil will be sold at Tk 173, while 5 litre bottle at Tk 845 and a litre palm oil at Tk 132. In February the National Board of Revenue reduced  the Value Added Tax on refined and crude (non-refined) soybean and palm oil to 10 percent from 15 percent. However, state minister for commerce Ahasanul Islam Titu at a meet the press at Dhaka Reporters ‘Unity on Tuesday said there is no scope to hike prices of edible oil. All factories have paid March salaries and Eid bonuses: BGMEA President He said the edible oil price can be adjusted with the international market rate but it will take time. The state minister also said the price hike would be considered on the import of new shipment of the edible oil.

The government has reduced VAT and duty on import of  rice, edible oil, sugar, and dates ahead of holy month of Ramadan. The National Board of Revenue (NBR) issued four gazette notifications reducing the customs duties on these essential items from a minimum of 5 percent to a maximum of 47 percent. According to the notifications, rice import duty and tax have been reduced by 47.25 percent. The duty has been reduced from 62.50 percent to 15.25 percent. Out of this, supplementary duty has been cut by 20 percent. Bangladesh seeks IFAD support to boost wheat and edible oil production This tax reduction will be applicablein the import of boiled and non-boiled rice. However, prior to importing rice at subsidized rates, written approval must be taken from an official of minimum joint secretary rank of the Ministry of Food for each shipment. The tax reduction facility will be valid till May 15, 2024. On the other hand, the Value Added Tax on refined and crude (non-refined) soybean and palm oil has been reduced to 10 percent from 15 percent, which will be in force till April 15. Govt to import 12,500 MT of sugar from US For sugar import, the fixed duty has been reduced from Tk 1,500 to Tk 1,000 per metric ton. This facility will be valid till March 31 as per NBR notification. Besides, the import duty on date has been reduced from 58 percent to 43 percent.. It will remain in force till March 30. One crore TCB card holder families to get 5 kg rice at Tk 30 from July In the cabinet meeting held at the Prime Minister's office on January 29, Prime Minister Sheikh Hasina ordered reduction of duty on edible oil, sugar, dates, and rice on the occasion of Ramadan. On January 22, the Ministry of Commerce wrote to National Board of Revenue (NBR) to exempt tax on rice, edible oil, sugar, and dates.

Prime Minister Sheikh Hasina has sought assistance from the International Fund of Agricultural Development (IFAD) to boost the production of wheat and edible oil in Bangladesh  to reduce its export dependency for the two items. The assistance was sought when IFAD President Alvaro Lario met her at the FAO headquarters,  Foreign Minister AK Abdul Momen told reporters after the meeting on Monday (July 24, 2023). Read: Bangladesh signs agreement with WFP to expand school feeding programme Hasina also asked the IFAD to help Bangladeshi small agro-enterprises in marketing their goods and help the country build an efficient food storage system. Also on Monday the prime minister asked the World Food Programme (WFP) to raise funds for Bangladesh particularly displaced Rohingyas who took shelter in Bangladesh as per capita fund for Rohingya declined to US$ 8 from US$ 12. She made the call when WFP Executive Director Cindy Hensley McCain met her at the FAO Headquarters on Monday. Hasina said Bangladesh has successfully raised food production thanks to her government's taking various steps in this field. Read: PM Hasina offers Nepal use of Payra port during meeting with Nepalese counterpart in Rome Bangladesh is in a good position in producing not only crops but also fish and other foods, she said. Cindy Hensley McCain is the wife of former US presidential candidate John McCain who adopted a three-month Bangladeshi girl in the early 1990s.  Meanwhile, the prime minister along with other heads of government and states attended a reception hosted by Director General of Food and Agriculture Organization Qu Dongyu at the FAO headquarters.

The government today decided to reduce the price of edible oil, considering the price reduction in the international market, Senior Secretary to the Ministry of Commerce, Tapan Kanti Ghosh, said today (June 11, 2023). The price of bottled soybean oil has been reduced by Tk 10 per liter to Tk 189, and loose soybean oil will now cost Tk 167 per litre. Also read: Bottled soybean price hiked by Tk 12 per litre, effective from today Meanwhile, the price of palm oil has been reduced by Tk 2 per litre to Tk 133, the senior secretary said after the 7th meeting of the ‘Task Force on Review of Commodity Prices and Market Situation’ at the conference room of the Ministry of Commerce at the Secretariat. The price reduction will come into effect "within a few days," he said. Also read: 11 proposals including import of soybean oil, sugar get cabinet body’s nod The commerce secretary said: “Many issues were discussed in today's meeting, including the prices of soybean oil, onion, ginger and garlic. We’ve also discussed the current import situation.” “We’ve already reduced the price of onion after the decision to allow imports,” he said. Also read: Govt cuts soybean oil price by Tk 5 per litre, effective from Sunday The commerce secretary also said the price of edible oil may reduce further in the next 15 days, based on the reduction in price in the international market. According to the Ministry of Commerce, there is a demand for 20 lakh tonnes of edible oil annually in the country. Of this, the demand during the holy month of Ramadan is close to 3 lakh tonnes. Around 200,000 tons are produced locally, while the remainder is imported. Also read: TCB to buy 1.60 crore litres of soybean oil for OMS ahead of Ramadan

The government of Bangladesh is likely to save Tk 10,000 crore annually from importing oil in the next three years as a revolution is taking place in mustard cultivation, said Agriculture Minister Dr Abdur Razzaque on Sunday (January 08, 2023). “The government has to import 90 percent edible oil from abroad to meet the demand for edible oil. As a result, it has to spend Tk 25,000 crore in a year. In such situation, the government has taken a roadmap to reduce import dependency by producing 50 percent of the demand in the country,” he said. Read: 5% cut in VAT on imported edible oil extended till April 30 Razzaque came up with the information, while talking to reporters after a views-exchange meeting with farmers at Kalaroa upazila in Satkhira district. Honey cultivation has also been increased in the country, he added. On the other hand, the farmers are benefitting by cultivating mustard in their Aman, Boro and barren lands, said the minister. Read: 50 percent edible oil to be produced in country by next 3 years: Agri Minister He also assured people of providing necessary support to ensure fair prices to the mustard growers. Talking about BNP’s movement, Razzaque said “People have no connection with BNP’s movement and BNP cannot topple the government through movement, so there will be no difference to their movement.” Referring to the Anti-Corruption Commission (ACC), the minister said ACC is doing its work independently and the government has no control over it. “ACC has established the rule of law by taking action against corruption. So BNP is misguiding people by saying ACC is suppression commission." Read More: TCB to procure 1.65 cr litres of edible oil from local suppliers again.

The government has extended the reduced 5 per cent value-added tax (VAT) on edible oil until April 30, 2023. The extension will be effective from January 1, after the date of the earlier notice in this regard that expired on December 31, said a notification issued by the Finance Ministry on Monday. Read more: 50 percent edible oil to be produced in country by next 3 years: Agri Minister The National Board of Revenue (NBR) slashed the VAT on soybean oil and crude palm oil from 15 per cent to 5 per cent during imports and exempted the VAT at the production and trading stages in March last year. The government decided to cut VAT on edible oil amid growing concern among consumers over price hike in edible oil and essential commodities.

Minister for Agriculture Dr Md Abdur Razzaque said on Saturday that the government has a plan to produce 50 percent of the annual demand for edible oil in the country in the next three years. He said this while talking to journalists after inaugurating a workshop on annual research assessment at the auditorium of Bangladesh Rice Research Institute in Gazipur. The minister said the mustard farmers are getting benefited financially by cultivating such hybrid varieties of mustard redesigned by the country’s agriculturalists. The Agricultural Ministry has taken a massive initiative to boost up the mustard production as the produced crops can’t impact on the market, Razzaque, also the presidium member of the ruling Awami League, said. Read more: Kurigram mustard growers expect bumper yield “We have taken an initiative to produce 40 to 50 percent of the demand for edible oil in the country by the next three years,” he said. Underscoring the need for research to produce paddy, he said the amount of agricultural land has decreased in relation to the population. There is no alternative to producing more paddies to cope with the increasing demand of rice, he said, adding that the redesigned varieties of paddies will be extended rapidly.   He said several varieties of vegetables like pumpkin were planted on yards earlier but not being planted on lands resulting in decreasing the number of agricultural lands.   An unbiased research is needed to find out the reason behind the price hike of rice despite bumper production of paddy, he observed.   Read more: Mustard, a ‘yellow gold’ for Benapole farmers With research institute Directorate General Dr Md Shahjahan Kabir in the chair, State Minister for Planning Dr Shamsul Alam, Agriculture Secretary Wahida Akter and Department of Agricultural Extension Director General Md Benazir Alam among others were present at the programme.

Cabinet Committee on Government Purchase approved some 10 proposals including procurement of edible oil by the TCB, and fertliser by BADC and BCIC. Trading Corporation of Bangladesh (TCB) will again purchase a total of 1.65 crore (16.5 million) litres of edible oil from three local companies to run its open marketing sale (OMS) programme. The state marketing agency TCB, a subordinate body of the Commerce Ministry, last week received a nod for procuring 2.25 crore (22.5 million) litres of soybean oil and 15,000 metric tons of lentils from local suppliers for the same purpose. Cabinet Committee on Government Purchase (CCGP) in its meeting on Wednesday approved three new separate proposals, placed by the Commerce Ministry on behalf of TCB in this regard. Finance Minister AHM Mustafa Kamal presided over the virtual meeting. As per the decision of the CCGP meeting, the TCB will procure 55 lakh (5.5 million) litres of soybean oil from each of the three companies—Super Oil Refinery Ltd., City Edible Oil Ltd and Meghna Edible Oil Refinery of Dhaka. Each litre will cost Tk 185 and each of the companies will supply the edible oils through two-llitre bottles as per condition of the contract. The entire consignment will cost Tk 305.25 crore as the TCB will pay Tk101.75 crore to each of the three companies. The Cabinet body also approved three separate proposals to import a total of 90,000 metric tons of fertiliser from two countries in three lots under G2G deals. Read: TCB to procure 2.25 litres of soybean oil, 15,000 mts of lentil for OMS Of these, Bangladesh Agriculture Development Corporation (BADC) under the Ministry of Agriculture will import 30,000 MT of TSP fertiliser in a single lot from OCP, SA of Morocco while Bangladesh Chemical Industries Corporation (BCIC) will 90,000 MT of urea fertiliser Muntajat of Qatar and Kafco of Bangladesh in three separate lots. The 30,000 MT fertiliser from Morocco will cost Tk 221.53 crore while each metric ton will cost $687.25 against the previous rate of $ 914.50. Under the BCIC proposals, the Muntajat will supply a lot of 30,000 MT of bagged prilled urea fertiliser at a cost of Tk 206.59 crore. Each MT of fertiliser will cost724.50 against the previous rate of $563.33. The Mutajat will supply another lot of 30,000 MT bulk granuller urea at Tk 209.10 crore.  Each metric ton will cost $733.33 MT against a previous rate $ 630.83. The Committee also approved a proposal of the National Curriculum and Textbook Board (NCTB) to award contracts for printing, binding and supplying of 11.20 lakh textbooks for the students from class I to VII for the 2023 session-year at Tk 489.25 crore. The contracts will be awarded to 83 companies in 182 lots, said Abdul Barik, additional secretary of the Cabinet Division while briefing reporters. A proposal of the Public Works Department under the Housing and Public Works Ministry received a nod to award a Tk 41.86 crore contract to Mazid Sons Constructions Ltd for external electrification works of 2 buildings at Rooppur Green City Housing Complex. Meanwhile, the Cabinet Committee on Economic Affairs in principle approved two separate proposals to award contracts through direct purchase method. Of these, Bangladesh Army will execute dredging and river bank protection works at Majhirchar of Dohar area and elevation of ground level of army installations, wave protection and arrow defense works at Army Establishment in Mithamoin Upazila of Kishorganj District.

Amid inflation woes, the Bangladesh government has raised the prices of soybean oil by Tk 7 per litre. Bottled soybean oil will now be available at Tk 192 per litre instead of the earlier Tk 185. Similarly, loose soybean oil will be retailed at Tk 175 per litre while a five-litre bottle of the commodity will cost Tk 945. This is according to a notification issued by the Bangladesh Vegetable Oil Refiners and Bonaspati Manufacturers Association. Also read: Importers press for soybean price hike by Tk 20 per litre According to the notification signed by Nurul Islam Molla, the executive officer of the association, the new prices will be effective from Tuesday. The decision to increase the soyabean oil prices was taken after discussions with the country's Trade and Tariff Commission and the Ministry of Commerce on August 17. The association sought a 20 percent price hike at the meeting. Also read: TCB to procure 125 lakh litres soybean oil, 5000 kg lentil from 7 local suppliers Similarly, the prices of one litre of loose palm oil has been fixed at Tk 145. The edible oil marketing companies cut the prices of soybean and palm oil on July 17, adjusting the costs in line with global market rates. According to Bangladesh Bank data, in the fiscal year 2021-22, about 5.15 lakh tonnes of crude soybean oil were imported into the country -- about 75,000 tonnes more than the previous year. Read US companies encouraged for oil, gas exploration in Bangladesh's offshore However, during the same period, the import of soybean seeds was 13.31 lakh tonnes, about 2.37 lakh tonnes more than the previous year. The import of refined soybean oil in the fiscal year 2021-22 was a little over 15,000 tonnes. No refined soybean oil was imported during the previous financial year. In the fiscal year 2021-22, about one million tonnes of refined and non-refined palm oil were imported.

Commerce Minister Tipu Munshi said on Thursday that Bangladesh Trade and Tariff Commission will soon decide whether the proposal of Bangladesh Vegetable Oil Refiners & Vanaspati Manufacturers Association to increase edible oil price by Tk 20 a liter is justified or not. “Price of edible oil has come down in global market. But Dollar rate is high in our country and for this reason we are not getting the benefit which we were supposed to get due to fall in oil price. However, the Tariff Commission will examine the matter,” he said. Tipu said this after attending the cabinet meeting at the secretariat. Replying to a question, the Minister said that it’s not the Commerce Ministry’s job to monitor price hike of essentials by traders following the fuel price hike. Read: CAB urges govt to readjust edible oil prices “Fuel prices have been raised after adjusting with prices in the neighboring countries. If the current diesel price is taken into consideration, it’ll be found that the government is still incurring a loss of Tk 8 per liter,” said the Minister. The association proposed increasing edible oil price in line with rapid increase in dollar price. If the association’s demands are met, price of edible oil will increase from Tk 185 to Tk 205 per liter, while price of non-bottled Soybean oil will shot up to Tk 180 from Tk 166 a liter and a five liter bottle will be sold for Tk 960, up Tk 50 than the current rate.