Edible oil crisis ‘artificial and rumour based’

Bangladesh Shop Owners Association President Md Helal Uddin on Saturday termed the ongoing edible oil crisis "artificial and rumour based" and said it could have been avoided if the government agencies had advanced planning.

"As far as I know, the country has adequate stocks of edible oil. But traders will do business for profit, not to incur losses. There was a deficit in the planning of government agencies, especially the Bangladesh Trade and Tariff Commission," he said replying to a question from a reporter at a press conference.

The association organised the press conference at the capital's Moghbazar with a four-point demand to solve the problems of value-added tax (VAT) collection at both the retail and wholesale levels.

Helal Uddin further said oil is imported. When the price rose in the world market, the tariff commission had been repeatedly asked to readjust the price, but it has not done it. In the month of Ramadan, at the special request of the commerce ministry, businesses sold oil at the previous price. Prices were still rising in many other countries, including neighbouring nations. Meanwhile, starting from small traders, everyone knows that the price of oil will go up. As a result, a "rumour based" crisis has been created over oil during the Eid.

However, Helal Uddin thinks that if the prices fall in the international market, the prices will also decrease here. He said if prices drop in the international market, businesses must drop the prices here as well.

"If one does not reduce the price, the other will sell the product by importing at a lower price. Again, when the price goes up, the market has to be left on its own. Business cannot be controlled by force," he added.

At the press conference, the leaders of the Bangladesh Shop Owners Association raised various allegations regarding the collection of VAT at the retail and wholesale levels.

At that time, they raised four demands such as a reduction of VAT at the retail level with the forthcoming budget in mind to solve these problems.

The leaders of different business associations were, among others, present at the press conference.