Palm oil allocations for Yangon Region will be increased during July, according to the Myanmar Edible Oil Dealers and Manufacturers Association.

The increase follows a reduction in palm oil quotas for Yangon in recent months. Officials said allocations will be raised again starting next week.

“Palm oil quotas have been increased again. In another three or four days, the market should return to normal conditions,” an official from the Myanmar Edible Oil Dealers and Manufacturers Association said.

According to market sources, Yangon Region’s palm oil allocation had recently been set at 6,015 metric tons. Beginning next week, the allocation is expected to be increased to more than 12,000 metric tons.

The earlier reduction in palm oil quotas led to a sharp rise in market prices over the past few days, with palm oil selling at more than Ks 15,000 per viss on the open market.

“Prices went up significantly. Previously, one viss cost less than Ks 10,000. A few days ago, I had to buy it for Ks 16,000. We had no choice because our business depends on this oil,” said a tea shop owner in Thingangyun Township.

Market participants expect palm oil prices to decline once the increased allocations reach the market.

“When supplies start arriving again, prices will fall. Within three or four days, more palm oil should be entering the market,” a palm oil trader said.

On July 12, a meeting was held at the office of the Myanmar Edible Oil Dealers and Manufacturers Association to discuss increasing palm oil distribution during July for Nay Pyi Taw, Yangon Region, and Mandalay Region.

Participants discussed measures to ensure that the additional palm oil allocations for July reach consumers in a timely manner, to enable company-appointed regional wholesale and retail distributors to sell the oil quickly at the official reference price, and to expedite the withdrawal and transportation of supplies from storage tanks across Yangon Region.