Soybean Oil from Argentina and Brazil Arrive in Bangladesh as Market Crisis Eases

Bangladesh has received 52,000 tonnes of unrefined soybean oil from Argentina and Brazil, delivered by four ships docking at Chattogram port over four days. The shipments come as the country grapples with a supply shortage of bottled soybean oil, prompting government action to stabilize prices.

The ships—Ardmore Cheyenne, MT Dumbledore, MT Sunny Victory, and MT Ginga Thresher—arrived following a month-long voyage from South America. Of these, MT Sunny Victory brought oil from Brazil, while the others carried shipments from Argentina. The arrival coincided with the government’s decision to raise the price of soybean oil by 8 taka per liter, aimed at addressing a shortfall in the domestic market.

Price Hike to Boost Supply Ahead of Ramadan

Bangladesh’s reliance on soybean oil imports underscores the vital role of global supply chains in its food security. Local firms, including TK Group, City Group, and Meghna Group of Industries (MGI), facilitated the imports, with TK Group accounting for nearly half the shipment at 25,000 tonnes.

“This adjustment will ensure a steady supply of oil during Ramadan,” said Shafiul Athar, Director of TK Group. He noted that the rising cost of soybean oil on the international market—currently at $1,217 per tonne—had previously strained imports.

With prices now revised, bottled soybean oil will retail at 175 taka per liter, up from 167 taka, while loose oil will sell for 157 taka per liter, compared to the previous 149 taka.

Crisis Exposes Market Challenges

The shortage of bottled soybean oil in recent weeks was attributed to suppliers shifting focus to loose oil, as wholesale prices surged beyond government-regulated levels. Though the government reduced import duties earlier to stabilize prices, traders were unable to raise retail rates, causing supply bottlenecks.

The newly arrived shipments are stored at Chattogram’s customs-controlled tank terminal and will undergo refining before hitting the market in one to two weeks. Traders believe this will ease the temporary shortage and help stabilize the market ahead of Ramadan, when demand typically peaks.

A Global Story

The shipments highlight Bangladesh’s dependence on agricultural exports from Argentina and Brazil, two of the world’s largest soybean producers. The oil trade is a critical part of global food supply chains, reflecting the interconnected nature of markets and the cascading effects of price changes worldwide.

As markets adjust, this latest development signals a temporary relief for Bangladesh, while also underscoring the challenges faced by import-reliant economies amid fluctuating global commodity prices.

Source: Prothomalo

For more information, please refer to https://en.prothomalo.com/business/local/1c20bel0iw

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