Price gap narrows to K1,350 in domestic palm oil market

The wholesale reference price for Yangon Region from 14 to 20 November 2022 was set at K4,350 per viss, while the market price stood at around K5,700 per viss. The price gap between them has narrowed to K1,350 per viss after many months. This is good news for the consumers.
The prices of palm oil from containers were K5,700-K5,750 per viss in the wholesale markets on 19 November 2022, according to Bayintnaung Commodity Centre.
The delivery order for palm oil was priced at K5,700 per viss before 19 November. The market prices of palm oil were K5,800 at Nyaungpinlay market, Yangon Region and K5,900 in Meiktila, the sellers from those regions said.
These days, the mobile market trucks with the subsidized scheme offer the palm oil at K4,450 per viss in the retail markets, which is K1,250 per viss compared to the reference price.
The reference price of palm oil for a week ending 27 November is to be issued on 21 November. The market price fell on 19 November following the price stability in the forex market and less possibility of price increase in international palm oil prices. Those traders who buy them these days are facing losses.
Malaysian palm oil prices decreased from 4,150 Malaysian Ringgit on 15 November to 3,850 Ringgit on 19 November 2022. A Malaysian Ringgit is exchanged at K461.18. The international price of palm oil was approximately K1.8 million per tonne and K3,000 per viss on 19 November. As a result of this, the price of delivery order for palm oil in Yangon markets has dropped.
Between 2017 and 2020, the price of Malaysian palm oil was around K3,000 per viss. Yet, the Kyat-Malaysian Ringgit foreign exchange rate was pretty low then. Consequently, the price of palm oil significantly decreased compared to the current market price. The Malaysian palm oil price was under 3,850 Ringgit in the years of 2012-2021. The FOB price of palm oil was K1,549 per viss on 17 March 2020.
The consumers cannot get a chance to buy the palm oil at the wholesale reference price set on a weekly basis tracking the international prices.
There is a wide gap of K4,000 per viss between the wholesale reference price and the market price in August. The gap significantly narrowed to K1,350 in recent days. The retailers are closely observing the market conditions depending on the price of delivery order and the price set by the wholesalers at Bayintnaung market.—TWA/GNLM