Govt to procure 4.75cr litres edible oil, 10,000 tonnes lentils to meet Ramadan demand
The government has approved the procurement of 4.75 crore litres of edible oil and 10,000 tonnes of lentils to prevent an artificial shortage and keep prices stable during the upcoming holy month of Ramadan.
Of the total edible oil, 3.75 crore litres will be imported from international sources, while 1 crore litres will be purchased locally.
The commodities will be distributed through the Trading Corporation of Bangladesh (TCB).
The decision was taken at a meeting of the Advisory Council Committee on Government Procurement held at the Secretariat on Tuesday, December 23, chaired by Finance Adviser Dr Salehuddin Ahmed. According to officials, the total expenditure on edible oil procurement will amount to Tk 642.45 crore, while Tk 72.20 crore will be spent on lentils.
As part of the international procurement, the committee approved the purchase of 2 crore litres of refined soybean oil from Vidok Farms and Exports Limited of Nigeria, with Brazil as the source country, at a cost of Tk 242.64 crore.
The price of soybean oil in two-litre PET bottles has been fixed at Tk 121.32 per litre up to Chattogram Port, while the cost including transportation and other charges up to TCB warehouses stands at Tk 150.34 per litre.
The Ministry of Commerce informed the committee that the oil would be sold in the open market at prices higher than the purchase cost but below the government-fixed market rate, ensuring that no subsidy would be required.
The committee also approved the purchase of 1.25 crore litres of refined soybean oil from Stuart Ciobanu Gerhardt of New Jersey, United States, with Tanzania as the source country, at a total cost of Tk 165.86 crore. In this case, the price per litre up to Chattogram Port has been fixed at Tk 132.69, while the cost including delivery to TCB warehouses has been set at Tk 164.11 per litre.
Officials said the procurement followed a direct purchase method after the bid was evaluated and recommended by the Technical Evaluation Committee (TEC).
In addition, approval was given for the import of 50 lakh litres of refined soybean oil from C Millennium Trade Sdn Bhd of Malaysia at a cost of Tk 66.04 crore. The estimated price per litre up to Chattogram Port is Tk 132.08, while the warehouse-delivered cost stands at Tk 163.37 per litre. As with the other imports, this oil will also be sold without any government subsidy.
Alongside imports, the government will procure 1 crore litres of refined rice bran oil locally through an open tender process to supply low-income families under the TCB Smart Family Card scheme. The total cost of the local procurement is Tk 16.79 crore, with the price fixed at Tk 167.90 per litre. The oil will be supplied by Prodhan Oil Mills Limited of Gaibandha, Green Oil and Poultry Feed Industries of Dhaka and Majumdar Products Limited of Dhaka, following recommendations from the TEC.
The meeting also approved the local procurement of 10,000 tonnes of lentils through an open tender process at a total cost of Tk 72.20 crore. The purchase price has been fixed at Tk 72.20 per kilogram. Joytun Auto Rice and Dal Mills Limited of Khulna emerged as the lowest responsive bidder and will supply the lentils in 50-kilogram bags for distribution through TCB at subsidised prices.
Officials said the large-scale procurement drive is aimed at increasing market supply, preventing hoarding and stabilising prices of essential commodities ahead of Ramadan, when demand traditionally rises sharply.
The Ministry of Commerce iterated that all procurement processes were conducted transparently and in accordance with government rules to ensure timely availability of essentials for consumers.