Edible oil shortage hits Dhaka markets as consumers buy extra

Highlights:

• Edible oil shortage hits Dhaka markets
• 5-litre soybean oil bottles disappear from most shops
• Retailers blame reduced supply
• Even super shop outlets fail to supply edible oil
• Producers claim supply is normal

A shortage of edible oil has emerged in several markets across the capital, as consumers rush to collect more than demand fearing a price hike due to the ongoing war between the US, Israel and Iran.

Some grocery stores still have one-litre and two-litre bottles on their shelves; five-litre bottles have almost disappeared from many markets.

Retailers said supply from companies has declined over the past week, leaving them unable to stock larger bottles. However, major producers deny reducing deliveries and instead blame stockpiling at the dealer level for the shortage.

A visit to Meradia Bazaar and nearby shops in South Banasree yesterday (7 March) revealed that no five-litre bottles of soybean oil were available. Even at the Shwapno outlet in the area, shoppers could not find any soybean oil.

A Shwapno salesperson said the stock ran out quickly. “Every customer who came in the morning bought a bottle. Now we have none left.”

The same situation prevailed at the Agora outlet in the area, as there were no five-litre bottles available, and only a few two-litre bottles of Fresh brand soybean oil remained. To ensure more customers could purchase the product, staff members allowed each buyer to take only one bottle.

Most shops had no soybean oil in Badda and Shahjadpur, while a few larger stores managed to keep three or four bottles of two-litre packs on display.

Shahjadpur shopkeeper Md Saiful Islam said companies rarely deliver five-litre bottles and only occasionally supply two-litre ones, citing the shortage of oil.

Another seller, Ilias Hossain, said his shop had not received any oil deliveries for two weeks. 

When contacted, Taslim Shahriar, deputy general manager of Meghna Group, which produces Fresh brand soybean oil, said they supplied large volumes in January and February.

“We have imported additional oil to ensure stable supply during Ramadan. More than 50,000 tonnes are being distributed every month, so there should be no crisis,” he said.

Echoing Taslim, City Group Executive Director Biswajit Saha said they have not reduced supply, though some smaller companies may be struggling to import oil due to complications with letters of credit.

The crisis was created due to increased demand in Ramadan and stockpiling by some consumers and traders, he added.