AreaBangladesh

Commodity GroupOilseeds, oils and meals

CommodityEdible oils

Date01/01/2021

Policy CategoryConsumption and marketing

Policy InstrumentMarket regulation

DescriptionTo tackle supply chain issues and halt surges in domestic vegetable oil prices (prompted by steep rises in international prices), froze retail prices for edible oils and considered suspending the value-added tax at cooking oil production and trading levels.

NotesBANGLADESH – market regulation: In January, to tackle supply chain issues and halt surges in domestic prices for edible oils prompted by steep rises in international prices, the Commerce Ministry considered suspending the value-added tax at cooking oil production and trading levels. Eventually, on 17 February, to stabilize domestic prices and prevent price manipulation by local traders, the Government decided to freeze domestic retail prices for edible oils at the following levels: BDT 115 and BDT 135 (USD 1.36 and 1.59) per liter of, respectively, loose and bottled soybean oil; BDT 630 (USD 7.44) for five-liter branded soybean oil; and BDT 104 (USD 1.23) per liter of loose palm oil. Following fresh rises in import prices, in mid-March, local edible prices were adjusted upward by 2–5 percent.