Edible oil importers and refiners have warned it has become increasingly difficult to sustain supplies under government-mandated price controls, urging the commerce ministry to scrap the restrictions and restore a competitive market. The ministry, however, reached no decision on the issue at its latest meeting. The warnings coincide with a sharp contraction in inbound shipments, which fell nearly 10 percent in the fiscal year that ended on June 30.
The policy deadlock comes amid a widening supply deficit. According to the Bangladesh Trade and Tariff Commission, annual domestic demand stands between 2.3 million and 2.4 million tonnes. However, combined imports of soybean and palm oil reached just 2.22 million tonnes in the 2025–26 fiscal year, undershooting national requirements and dropping from the 2.45 million tonnes imported during FY 2024–25.
Customs data analysed by the National Board of Revenue shows the import bill for FY 2025–26 totalled BDT 304.4 billion, rising to a landed cost of BDT 350 billion once duties and VAT are included. In the previous fiscal year, the pre-tax bill stood at BDT 319.04 billion, with a landed cost of BDT 348.96 billion.
Because Bangladesh produces negligible quantities of oilseed, the country relies on imports to meet virtually all domestic edible oil demand. The large-scale supply chain is heavily concentrated, dominated by three conglomerates: TK Group, Meghna Group of Industries and Smile Food Products. Under the current supply structure, crude soybean oil is imported and refined locally before retail distribution, while palm oil arrives pre-refined. A small number of industrial groups also import raw soybean seeds from Brazil and the United States for domestic crushing and oil production.
NBR data show palm oil continues to dominate the domestic market, accounting for nearly 70 percent of combined imports of the two edible oils. Crude soybean oil imports fell to 690,000 tonnes in the recently concluded fiscal year, compared to 1.53 million tonnes of palm oil. In the fiscal year before that, the split stood at 931,000 tonnes of soybean oil and 1.51 million tonnes of palm oil.
Mostafa Kamal, chairman of Meghna Group of Industries, told Bonik Barta that maintaining supply continuity must be the priority. “We have to balance demand and supply by weighing local production, imports and stocks,” Kamal said. “Instead of fixing prices, the government should let a competitive market set them, based on international prices, import costs and the local market situation. That’s the most effective system.”
In its latest letter to the commerce ministry, the Bangladesh Vegetable Oil Refiners and Banaspati Manufacturers Association formally requested that the government relinquish its role in setting retail prices. The group argued that a market-driven mechanism factoring in global commodity exchanges, import costs and local conditions represents the only viable framework, tabling a series of operational proposals.
Under the association’s proposed framework, pricing would be calculated using active letters of credit, in-bond and ex-bond values alongside international commodity exchanges, specifically the Chicago Board of Trade. The Tariff Commission would verify the data. The association also proposed establishing a central market-monitoring cell under the commission, to be housed within the commerce ministry. Importers would feed commercial data directly into the cell, creating a single information channel for all state agencies to improve transparency and eliminate redundant regulatory data requests.
The letter further suggested that the ministry launch a digital dashboard to store corporate pricing data, offering to finance and build the platform at the association’s own expense.
Shafiul Athar Taslim, a director of TK Group, told Bonik Barta that importing bulk commodities requires significant capital, making market-based pricing essential for both consumer stability and commercial viability.
“We are forced to sell at about BDT 20 a litre below our import cost,” Taslim said. “We have kept importing and supplying only on the government’s assurances. But it’s not possible to run a business at a loss for long.”
Industry executives noted that while the government has repeatedly promised a transition to market-based pricing, it has failed to implement the policy. They argue that a deregulated market would naturally self-correct, as competition would prevent individual firms from raising prices unreasonably. Without immediate policy reform, they warned, mounting financial losses will eventually leave importers and refiners unable to maintain supplies.