MYANMAR: Despite the fact that junta’s reference price of palm oil has dropped, in actual markets, the price is still increasing, as inquired in the palm oil market in Southern Shan State.
Palm oil import, storage and distribution Supervising committee regarded the basic reference price as 5470 kyats for 1 viss (about 2.25 liters) from May 2 to May 7, compared to 4680 kyats for one viss last week. It seemed that 110 kyats dropped.
At the palm oil store in Taunggyi, the price was 6800 kyats per one viss before the Thingyan festival and currently it is about 7000 kyats per a viss. The groundnut oil price is 13000 kyats to 15000 kyats based on the types of the oil. As the price was announced to drop, people asked the price. If the price of the whole sale doesn’t drop, it is not convenient to sell it at a low price. The business is running slow and because of the freight expenses and the difficulties of transportation, there is a higher price compared to the big cities, as said by the person who sells basic commodity wholesale in Taunggyi Myoma market.
The palm oil committee announced to take action against those who store and sell at high prices with the intention of market play of the palm oil by important commodity and service law.
As junta restricted the palm oil import and forced dealers to buy in quota, the price hasn’t significantly dropped, as said by the oil dealers.
The consumption of palm oil in Myanmar is about one million ton per year and the production is about four hundred thousand tons. So, the required amount of about 7 hundred thousand tons was imported from Malaysia and Indonesia.
As the local oil consumption rate is higher, junta coup leader Min Aung Hlaing frequently says in the junta’s meeting to reduce the consumption of oil.