Wholesale prices of edible oil have surged sharply in the country’s largest commodity hub, Khatunganj in Chattogram, raising fresh concerns over market stability, supply dynamics and regulatory oversight.
Traders and analysts point to a combination of global disruptions, lower imports, rising freight costs and alleged market manipulation as key drivers behind the spike.
Sharp rise in wholesale prices
In just one month, palm oil prices have jumped by Tk 500-600 per maund, while soybean oil has increased by Tk 200-250. On Sunday, April 5, soybean oil from major refiners was trading at Tk 7,320-7,330 per maund, while palm oil ranged between Tk 6,530 and Tk 6,545.
Only weeks earlier, palm oil was below Tk 5,900 per maund, and soybean oil was significantly lower – highlighting the pace and scale of the surge.
Global conflict ripples through local market
Market insiders say the ongoing Middle East conflict, particularly tensions linked to Iran, has disrupted global supply chains. Freight costs have risen sharply, while uncertainty over shipments has pushed up booking rates in international markets.
According to traders, these external shocks have had a direct pass-through effect on Bangladesh’s import-dependent edible oil market.
Import decline adds pressure
Data from the National Board of Revenue (NBR) shows a mixed but concerning import trend in the current fiscal year (2025-26):
• Crude soybean oil imports fell to 9,99,037 tonnes (down from 13,18,347 tonnes last year)
• Crude palm oil imports rose to 20,40,792 tonnes (up from 19,06,176 tonnes)
• Overall, edible oil imports declined by 1,85,302 tonnes in the first eight months compared to the previous year
The drop in soybean oil imports in particular has tightened supply, contributing to upward price pressure.
Allegations of syndicates and ‘DO trading’
Beyond global and supply-side factors, traders allege that market practices are exacerbating the crisis. The controversial “Delivery Order (DO) handover” system – essentially paper-based trading without physical delivery – has come under scrutiny.
According to several wholesalers, speculative trading through DO transactions is inflating prices artificially, sidelining smaller traders and distorting real supply-demand dynamics.
Consumer rights advocates, including leaders from the Consumer Association of Bangladesh (CAB), have also warned of a strong syndicate controlling key commodities in Khatunganj.
International vs domestic price divergence
Interestingly, global price trends do not fully explain the domestic surge.
The World Bank’s “Pink Sheet” data shows:
• Palm oil averaged $1,049/tonne (Jan-Mar 2026), slightly lower than last year’s $1,068
• Soybean oil rose significantly to $1,306/tonne from $1,043 last year
Despite relatively stable or even lower global palm oil prices, Bangladesh’s domestic market has seen increases in both oils, indicating strong local distortions.
Retail market impact intensifies
Data from the Trading Corporation of Bangladesh (TCB) shows that retail prices have also climbed:
• Soybean oil: Tk 185-196 per litre (up from Tk 160-165 last year)
• Palm oil: Tk 162-168 per litre (up from Tk 144-150 last year)
This widening gap between income and essential commodity prices is likely to increase pressure on consumers, particularly lower- and middle-income households.
Calls for regulatory intervention
Market stakeholders and consumer groups are now urging immediate government intervention to stabilise prices and ensure fair trading practices.
They argue that while global factors such as war and freight costs are unavoidable, unchecked speculation and syndicate-driven pricing can and should be addressed through stricter monitoring and enforcement.
As Bangladesh heads into a period of heightened economic sensitivity, the edible oil market has once again emerged as a critical test case for balancing global pressures with domestic market governance.