Edible oil prices have surged abnormally in Chittagong’s Khatunganj wholesale market. Within a single month, palm oil prices jumped by Tk 500–600 per maund, while soybean oil rose by Tk 200–250.
While traders cite the Middle East conflict as a primary cause, many also point to market syndicates and speculative "DO" (Delivery Order) paper trading as key drivers behind the hike.
National Board of Revenue (NBR) data reveals a significant drop in imports. In the first nine months of the 2025-26 fiscal year (July 1 to March 31), total edible oil imports fell by 185,302 tons compared to the same period last year.
Crude Soybean Oil 999,037 tons imported (Down from 1,318,347 tons). Crude Palm Oil 240,792 tons imported (Down from 1,906,176 tons).
In Khatunganj, soybean oil from major refiners like City Group and TK Group is trading between Tk 7,320 and Tk 7,330 per maund. Palm oil from Abul Khair, TK, and Meghna Group is selling for Tk 6,530–6,545, up from less than Tk 5,900 just a month ago.
Jasim Uddin, a manager at TK Group, noted that high international booking rates, rising shipping costs due to the Middle East war, and supply uncertainty are driving local prices upward.
Local traders and consumer rights advocates remain skeptical. Md. Mohiuddin of the Khatunganj Traders Welfare Association questioned why edible oil is the only commodity seeing such a "dramatic" increase compared to other consumer goods.
Rafiqul Alam, owner of MK Trading, blamed "gambling" within the DO system. He argued that "paper trading"—where delivery orders are sold multiple times before the product is moved—is artificially inflating costs, hurting small traders and consumers.
SM Nazer Hossain, Vice President of the Consumers Association of Bangladesh (CAB), added
"While shipping costs have risen, the price hike in Khatunganj is unusual and indicates the presence of a strong syndicate of large traders controlling the market."
Interestingly, World Bank data shows that while soybean prices have risen globally, average palm oil prices have actually decreased—a trend not reflected in the Bangladeshi market.
