The Supervisory Committee on Edible Oil Import and Distribution under the Ministry of Commerce (MOC) has set the reference rate for palm oil as 4,150 kyats per viss this week. 

The Committee also reported that the wholesale reference rate of palm oil for the Yangon market registered a small decline for the week ending 13 August. The reference price was set at Ks4,295 per viss from 31 July to 6 August. For the week ending 13 August, the price was set lower at K4,150 per viss. The figures showed a decrease of K145 per viss compared to that of the previous week.

The Committee has been closely observing the FOB (Free on Board) prices in Malaysia and Indonesia including transportation cost, tariff and banking service, and issuing the wholesale market reference rate for edible oil every week.

Currently, 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, according to the Ministry of Commerce.

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 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.

As edible oil price increases, there are long queues of buyers at the vehicles selling palm oil from Myanmar Edible Oil Dealers’ Association (MEODA).

The Myanmar Edible Oil Dealers’ Association sells edible oil to the consumers for Ks 4,400 per viss. 

Chairman of the Committee for Stability of Commodity Price, Union Minister for Commerce U Aung Naing Oo explained the guidance of the Prime Minister at the State Economic Promotion Meeting held in Yangon on July 1. Moreover, they discussed various matters concerning the import, storage, and distribution processes of edible palm oil, with the aim of establishing systematic procedures and plans to ensure price stability.