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Export ban on Myanmar edible oil crops lifted following regular global palm oil export

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Exports of oil crops and cooking oil are exempted from the export licence, yet starting from 1 August, traders need to seek an export licence for those export items, according to a notification of the Trade Department on 23 May.

Exports of Myanmar’s edible oil crops will resume as the world’s top palm oil exporters return to normalcy, according to the Trade Department under the Ministry of Commerce.
Last April, the world’s top palm oil exporter Indonesia, which is one of the main oil suppliers to Myanmar, declared an export ban on cooking oil export to reduce the domestic shortage. Consequently, Myanmar temporarily suspended exports of oil crops (peanut and sesame) in order to have oil self-sufficiency.
At present, the top exporters restarted cooking oil exports. This being so, Myanmar’s export ban on oil and oil crops is to be reversed. The export reference prices will be determined in line with the rate in international seaborne trade, according to a notification dated 5 July 2022 released by the Trade Department.
As a result of this, oil crops (peanuts and sesame seeds) are to be allowed for export according to the rules and regulations.
On 30 June, Foreign Exchange Supervisory Committee notified the traders of the export earnings for agricultural products including oil crops to be paid in dollars.
Starting from 4 July, the financial transactions for the corn, beans and oil crops have been made in dollars at the border posts between Myanmar and China.
On 14 December 2021, the Central Bank of Myanmar released a notification that the use of Yuan or Kyat in the bilateral transaction was officially allowed in the border areas between Myanmar and China to boost the bilateral cross-border trade, facilitate the trading and bilateral transaction, and increase the use of domestic currency, following the objectives of the ASEAN Financial Integration. After export earnings were earlier s`et to be paid in dollars instead of yuan, the official exchange rate against the US dollar was set at K1,850.
At present, the dollar was valued at over K2,000 in the unofficial FX market, indicating a large gap in the currency exchange rate. Therefore, we have to observe the impacts on the agricultural products from this action, traders said.
Moreover, exports of oil crops and cooking oil are exempted from the export licence, yet starting from 1 August, traders need to seek an export licence for those export items, according to a notification of the Trade Department on 23 May. — NN/GNLM

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