The wholesale reference rate of palm oil for the Yangon market fell for two straight weeks, according to the Supervisory Committee on Edible Oil Import and Distribution.
The reference price was set at K4,295 per viss from 31 July and 6 August. For the week ending 13 August, the price was set lower at K4,150 per viss. Then, it was on the course of a second consecutive decline at K4,035 per viss for a week from 14 to 20 August. The price was down by K115 per viss compared to that of the previous week.
The Supervisory Committee on Edible Oil Import and Distribution under the Ministry of Commerce has been closely observing the FOB prices in Malaysia and Indonesia including transportation cost, tariff and banking service, and issuing the wholesale market reference rate for edible oil every week.
Yet, the palm oil market price is exorbitantly high compared to the reference price.
If those edible oil retailers and wholesalers are found overcharging, storing inventory intentionally and attempting unscrupulous action to manipulate the market, they will face legal action under the Essential Supplies and Service Act, MoC released a statement.
The Ministry of Commerce is also trying to secure edible oil sufficiency, supervise the market to offer a reasonable price to the consumers and maintain price stability and mitigate the consumers’ concern over the possible shortage of palm oil.
At present, mobile market trucks operated by oil importing companies, in coordination with Myanmar Edible Oil Dealers’ Association, were back to business in some townships on 17 July 2022 to offer palm oil at a subsidized rate. They offer palm oil at a fairer price to the consumers directly depending on the reference price. However, there are limited sources of supply although they directly sell the palm oil at reference rate depending on the volume quota.
The domestic consumption of edible oil is estimated at 1 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/EM