The Consumers Association of Bangladesh on Tuesday urged the government to take strict action against the soya bean oil syndicate as ‘edible oil is going beyond the reach of consumers due to the manipulation of syndicates’ in the domestic market.
In a statement, the organisation said that an old syndicate — active again since August 5 — was now dominating the soya bean oil market.
The group is creating an artificial crisis by raising prices, thereby putting pressure on the government while securing hefty profits, it said.
The statement said that despite government policy support — such as duty waivers and VAT reductions — several powerful companies had deliberately reduced oil supply, destabilising the market.
Although the government approved a price hike of Tk 14 a litre from April 14, the syndicate is now reportedly trying to push for an additional Tk 7 increase.
Citing global trends, the CAB noted that the international price of soya bean oil dropped from $1,667 a tonne in 2022 to $1,022 in 2024, but the domestic prices had continued to climb.
Currently, unpackaged soya bean oil is being sold in the retail market for Tk 180 a litre — Tk 11 more than the official rate.
The CAB blamed four to five major companies for controlling the market saying that they used similar tactics during the previous government to exploit consumers.
‘They are still creating instability in the same way,’ the statement said, adding, ‘If the syndicate is not dismantled and market transparency and competition are not ensured, the crisis will only deepen.’
The CAB urged the government to take immediate, strict action against the syndicate, strengthen market monitoring, and ensure proper implementation of policy support measures.
The organisation also criticised traders for failing to boost supply after the National Board of Revenue removed a 5 per cent import duty following the commerce ministry’s price hike decision.