September 06, 2022
The wholesale reference rate of palm oil in the Yangon market rose again to over K5,200 per viss, according to the Supervisory Committee on Edible Oil Import and Distribution.
The supervisory committee under the Ministry of Commerce has been closely observing the FOB prices in Malaysia and Indonesia including transport costs, tariffs and banking services, and issuing the wholesale market reference rate for edible oil on a weekly basis.
The reference rate of palm oil in the Yangon market for a week from 5 to 11 September is set at K5,220 per viss, whereas the reference price for a week ending 4 September was set low at K4,910 per viss. The figures this week showed an increase of K50 per viss, showing an increase of K310 per viss compared to that of last week.
Despite the reference rate, the current market price touched a high of K10,000 per viss.
If those retailers and wholesalers are found overcharging, storing inventory intentionally and attempting unscrupulous action to manipulate the market, they will face legal action under the Special Goods Tax Law, MoC released a statement.
The Ministry of Commerce is striving for consumers not to worry over the supply of edible oil. The ministry is also trying to secure edible oil sufficiency, supervise the market to offer reasonable prices to the consumers and maintain price stability.
At present, mobile market trucks operated by oil importing companies, in coordination with the Myanmar Edible Oil Dealers’ Association, were back to business in some townships on 17 July in order to offer palm oil at a subsidized rate. They sell palm oil at K5,400 per viss to consumers directly. However, there are limited sources of supply although they directly sell the palm oil at a reference rate depending on the volume quota.
“The edible oil price is moving an upward spiral. We rush to queue to buy the oil when the mobile market trucks arrive in our ward,” a housewife said.
The domestic consumption of edible oil is estimated at one million tonnes per year. The local cooking oil production is just about 400,000 tonnes. To meet the oil sufficiency in the domestic market, about 700,000 tonnes of cooking oil are yearly imported through Malaysia and Indonesia. — NN/GNLM