Prime Minister Sheikh Hasina today (Jan 29) has directed the  the authority concerned to reduce the import duty on four most essential items – rice, edible oil, sugar and date ahead of the upcoming Ramadan. PM Sheikh Hasina delivered this directive from the Cabinet meeting at her office in the capital. “The prime minister has given a clear directive to decrease the duty on four items – edible oil, sugar, rice and date — on the occasion of the upcoming Ramadan,” said Md Mahbub Hossain, the Cabinet Secretary, while briefing reporters at the Secretariat. Highlighting the instructions of the Prime Minister, the Cabinet Secretary said that the supply of edible oil, sugar, dates and rice should not be reduced during Ramadan. Therefore, the Prime Minister has given instructions to reduce the duty rate of edible oil, sugar, dates and rice on the occasion of upcoming Ramadan. Mahbub Hossain said, "The National Board of Revenue (NBR) would assess how much the duty can be curtailed."  

Agriculture Minister Dr M Abdur Razzaque today (Sunday) said the government is implementing action plan to meet at least 40 percent demand of edible oil locally as local oil production now hovers only 2 lakh tonnes  against 20 lakh tonnes of our annual demand.   “The Agriculture Ministry is implementing some sort of definite action plan to meet 40 percent edible oil demand locally  in next 3-4 years”, said the minister.   The agriculture minister came up with the expectation while addressing a seminar at a city hotel here this morning. Bangladeshis consume 20 lakh tonnes of edible oil a year, while the local production hovers around only around 2 lakh tonnes. The imported 18 lakh tonnes of edible oil incorporate 46% soybean and 53% palm oil. Expressing his grave concern over agricultural credit, Dr Razzaque, also ruling Awami League presidium member,  said the government is now providing credit to the farmers with 4 percent interest.  He said that but in most of the cases, the farmers face difficulties in fulfilling terms and condition in getting loans.   Krishi Bank Managing Director Ismail Hossain, Media personality Shaikh Siraj, Financial Institutions Division Additional Secretary Abdullah Harun Pasha, Krishibid Awlad Hossen, Dhaka University Banking and Insurance Division Prof Hasina Sheikh, former Managing Director of Bank Asia Arfan Ali, Managing Director of Bangladesh Finance Kaiser Hamid, among others, spoke on the occasion.   On the requirement of insurance for the livestock sector, the minister said “Insurance is very much needed for the livestock.”   Reiterating importance of financial inclusion, credit and investment in the livestock sector, the discussants said the perspective of the Bankers should be changed in case of farm credit disbursement as most of the banks so far did not open their branches at the rural level.   On the other hand, micro financial institutions (MFIs) and NGOs usually disburse credit with 20-25 percent high interest rate in the rural areas after taking less interest rate fund from the Bangladesh Bank. Source: BSS AH

Commerce Minister Tipu Munshi today (Monday) said the government has taken strict action to ensure normal supply situation of the edible oil side by side selling the oil at fixed prices at the retail level. "We have told all the agencies to take stern action so that there is no fraud anywhere. Oil should be sold at the price that has been fixed," he said while speaking to reporters following a meeting with soybean oil vendors at his office in the secretariat. Referring the recent rise the price of edible oil in the international market, he said, "Considering the price situation in the international market and neighboring countries, we are trying to keep the price of edible oil in the local market as low as possible." He said the real reason behind the shortage of edible oil supply during Eid has been identified. "Attempts have been made to stockpile oil at the dealer and retail level. As a result, there is a shortage in supply. That's why the Directorate of Consumers Right Protection is conducting raids at the store and dealer level, they are also imposing fines," he said. He said "We have asked the traders' association to cancel the dealership of those who have committed this heinous act." Tipu informed that the Trading Corporation of Bangladesh (TCB) will resume sale of edible oil at Taka 110 a litre of bottled soybean oil from June to its one crore cardholder families. "We will sell the edible oil at Taka 110 per litre to one crore TCB cardholder families from June," he added.  Among others, Senior Commerce Secretary Tapan Kanti Ghosh and Bangladesh Trade and Tariff Commission Chairman (Secretary) Md Afzal Hossain, among others, were present on the occasion. Tipu said the price situation of edible oil in the world market needs to be highlighted through publicity. "Edible oil is an import dependent product. Only 10 per cent of the country's total demand is being met from local production. The remaining 90 per cent is being imported. This has also affected our country due to rising prices of edible oil in the international market and transportation costs," he added. He said the government is trying to keep the price of edible oil at a reasonable level and supply in normal so that there is no shortage of oil in the market. Recently, Bangladesh's edible oil refiners increased the price of bottled soya bean oil by Taka 38 a litre to Taka 198 a litre. Highlighting the price of edible oil in the international market and neighboring countries, Tipu Munshi said that soybean oil is currently being sold at Bangladeshi Taka 213 to 224 per liter in India, Taka 236 to 238 per liter in Pakistan and Taka 197 to 214 per liter in Nepal. He mentioned that soybean oil in the international market is US$2,000 per ton and the price of palm oil is $1950 per ton. The minister said the rise in edible oil prices in the international market and rising transport costs have had an impact on the local market. He sought the cooperation of the media to make the people aware about the rising prices of edible oil in the international market. Source: BSS AH

Finance Minister AHM Mustafa Kamal today (Thursday) said the government has decided to withdraw the value-added tax (VAT) on commodities like sugar, chickpea and edible oil.   "VAT on the import of these commodities has been withdrawn as their consumption is higher during the holy month of Ramadan. Considering the holy Ramadan, we took the decision to withdraw the VAT for a temporary period," he said.  The minister said this while briefing reporters after two consecutive meetings of the Cabinet Committee on Economic Affairs and Cabinet Committee on Government Purchase.  Kamal said the decision has been taken so that prices of the essentials can be kept within a tolerable level.  An official of the Finance Ministry informed that in case of soybean oil, 15 percent VAT has been exempted at production stage and 5 percent at consumer level.  Talking to BSS, National Board of Revenue (NBR) Senior Information Officer Syed A Momen said no SRO has been issued yet. NBR has sent the proposal to the Finance Ministry and the SRO will be issued soon after approval of the proposal, he added.  Kamal, however, said the government has taken initiatives to provide commodities through the Trading Corporation of Bangladesh to one crore families across the country.  He mentioned that the government is taking necessary measures to strengthen the TCB as it reaches daily essentials to the people in time.  "We have taken the step so that people do not suffer," he added.  He informed that the operation of TCB is being extended up to the union level so that people can get products easily.  Kamal, however, said people feel the pinch of price hike when local productions as well as international supply are hampered.  He mentioned that the war has pushed up the transportation cost and the suppliers are taking the advantage of the situation which further escalated the prices of the products.  He said TCB will play a more effective role in the coming days. Source: BSS AH

The prices of edible oil in the country’s market have been increased after showing reason of price hike in the international market. The price of soyabean oil at the retail level has been increased by 2 taka per liter and by 4 taka per liter for the bottled oil. The information came through a press release of the commerce ministry after holding national committee meeting of essential commodity marketing and distributors on Monday. According to the decision, price of soyabean oil at retail level at the mill gate was fixed at 113 taka, 115 taka at the dealer level and highest 117 taka per liter. The bottled soyabean oil is fixed at 127 taka at the mill gate, 131 at the deader level and highest 139 taka per liter. The price of 5 liter bottled soyabean oil at the mill gate is fixed at 620 taka, 640 taka at the dealer level and highest 660 taka. Besides, price of one liter palm oil is fixed at 104 taka at the mill gate, 106 taka at the dealer level and highest 109 taka. Earlier, on February 17 at the national committee meeting, per liter bottled soyabean oil was fixed at 123 taka at the mill gate, 127 taka at the dealer level and 135 taka at the retail level. The price of five liter bottled soyabean oil was fixed at 585 taka at the mill gate, 600 taka at the dealer level and 625 at the retail level. According to the commerce ministry sources, as the prices of crude soyabean and palm oil are unstable in the international market, so the national committee meeting was held to adjust the local market prices with the international market considering the interest of the refinery millers and consumers. AH     

Commerce Minister Tipu Munshi said that committee has been formed to coordinate the prices and also to stop tyranny of middlemen for controlling the prices of edible oil. He delivered the information on Sunday at his office in the ministry after holding meeting with all stakeholders including the businessmen and importers over the issue of edible oil price hike. The commerce minister said, price hike in the international market also influences the local market. Because, 90 per cent oil have to buy from international market. Concerned were directed to ensure the matter that prices will not be raised while change of medium. Preparation has been taken keeping in mind the holy month of Ramadan, he informed and said, necessary steps will be taken so that people can get their essential commodities at fair prices. Along with that commodities will be sold through TCB. This year three times more products will be sold through TCB comparing to other years. Edible oil, pulse, potato and onion will be in the list. Tipu Munshi said, concerned stakeholders including the tariff commission will sit and fix the prices of edible oil within a short span of time. In this regard a committee has been formed. Price hike in the international market also influences our local market. Because, 90 per cent oil is bought from international market. AH