Domestic palm oil price rallies tracking global oil prices

According to the Supervisory Committee on edible oil import and distribution under the Ministry of Commerce, the price of palm oil spiked following the prices in the world’s palm oil-producing countries.
The committee has been issuing a weekly reference rate to govern the market in line with the changes in international rates.
The committee 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 in the Yangon market for a week from 25 April to 1 May was set at K5,620 per viss. However, the rate rocketed to K6,025 per viss for a week ended 8 May. The figures indicated a sharp increase of K400 per viss.
The Ministry of Commerce is striving for the 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 a reasonable price to the consumers, maintain the price stability and prevent market manipulation.
The MoC said in its statement that 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.
There are 31,090.98 tonnes of palm oil (19.03 million visses) remaining in the palm oil tanks. There is a sufficiency in the domestic market. The Department ensures the daily distribution of palm oil to other regions and states. The shipments of palm oil from foreign countries are regularly seen, as per the MoC’s statement dated 25 April.
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. About 700,000 tonnes of cooking oil are imported annually through Malaysia and Indonesia to meet the oil sufficiency in the domestic market. — NN/GNLM