Bangladesh imports large quantities of soybean oil from Argentina, a South American country. The price of crude soybean oil imported from the country has come down significantly in the last one month.

According to Reuters, the Bangladesh Trade and Tariff Commission (BTTC) calculated that the price of crude soybean oil in Argentina last Wednesday was ১ 1,484 per tonne, up from ৭ 1,960 a month ago. This means that the price of crude soybean oil has dropped by about 26 percent in one month.

Not just soybean oil, the trend of rising commodity prices in the world market has now started to decline. Prices of rice, edible oil, wheat, sugar and pulses are falling. This is good news for the people of Bangladesh. Because, the demand of a large part of these products is met by importing from abroad. Inflation in the country has also risen sharply over the past few months. The people of limited income have fallen into a huge crisis due to the increase in household expenses.

What a lotus price

Bangladesh is now thinking of importing rice. Rice prices are falling in the world market. According to the Tariff Commission, the price of rice in Thailand has dropped by 6 to 7 percent in one month. A month ago, the price of 5 percent broken boiled rice was ৭ 483 per tonne, which dropped to ১ 441 on Wednesday.

Wheat prices have skyrocketed in the months since exports from Russia and Ukraine were halted. It has been declining for a month. A month ago, the price of wheat was ৬ 508 per tonne. Named ৪ 453 on Wednesday.

Sugar prices have been falling for a week. A week ago, the price of unrefined sugar was ৩ 443 per tonne, which was sold at ৪ 415 on Wednesday. This price of sugar is from Brazil, from where Bangladesh imports huge quantities.

Like soybean oil, the price of palm oil has also come down. The price of crude palm oil, which rose to হাজার 1,690 per tonne, fell to হাজার 1,230 on Wednesday. In one month, the price has decreased by 26 percent.

Australian lentil prices have fallen by more than 14 per cent. A month ago, the price of lentils was more than 800 per tonne, which dropped to ৬ 601 on Wednesday.

Why prices are falling

Prices of various commodities have been rising since the end of last year as the global corona outbreak began to decline. Prices have skyrocketed since the start of the Russia-Ukraine war last February. The World Food and Agriculture Organization’s (FAO) food price index rose to an 11-year high this year. The index has been declining for two months, meaning prices are falling worldwide.

Analysis by various market watchdogs and analysts says product prices are falling as production increases, supply conditions improve and demand declines slightly. Different countries have relaxed their protectionist policies to handle their own markets. That is also the reason for the reduction in prices.

For example, last April, Indonesia banned the export of palm oil. This increases the price of edible oil in the world market. They picked it up again in May. Now Indonesia wants to increase exports, because they are in some trouble with their reserves.

Analysts say the reason for the fall in wheat prices is that North American countries are expected to have good yields this time around. Meanwhile, favorable weather in Russia will increase production.

Prices are also falling in the country

Prices in the country’s wholesale markets Moulvibazar in Dhaka and Khatunganj in Chittagong depend on the situation in the world market. Traders said prices were falling in the wholesale market.

According to traders, the price of palm oil per liter in Khatunganj has come down by 6 to 18 per cent depending on the company and the supply. On June 1, the price of a company’s palm oil was 153 rupees per liter, which dropped to 141 rupees. Another company is selling palm oil supply order (SO) at Rs 120 per liter for 15 days supply. In 22 days in Khatunganj, the price of soybean oil has come down by Tk 6 per liter. Concerned individuals say it takes about 40 days to import soybean oil. However, palm oil comes within 15 days. As a result, the price of palm has come down more.

In Khatunganj, the price of wheat has come down by 3 percent in the last one week. Prices of pulses have also come down. The price of medium lentil pulses has come down from Rs 98 to Rs 94 per kg. The price of pea pulses has come down by about 4 rupees. It is being sold at Tk 58 per kg.

A businessman from Old Dhaka, who did not want to be named, told Prothom Alo that as prices in the world market are on the decline, it is expected that it will come down in the country as well. But whether the companies are reducing or not, the government needs to monitor.