Sudden drop in prices of rice, palm oil may occur

Rice and oil traders have predicted that the prices of rice and edible oil may suddenly fall on the opening day of the commodity depots on 28 August.
The price of rice per bag and the price of palm oil per viss rose by around K100,000 and K10,000 in August, respectively. Consumers are complaining that they have to spend more money on daily purchases of rice and oil.
A bag of Pawsan rice variety and low-grade rice per person with a citizenship scrutiny card is being sold for one month at a low price at the Wadan Depot and the Bayintnaung Depot on 7 August 2023. The prices are K110,000–K120,000 for a bag of Shwebo Pawsan variety, K94,000–K97,000 for Ayeyawady Pawsan variety, K65,000 for 10 per cent broken Aemahta variety, and K60,000 for 25 per cent broken Aemahta variety.
A total of 42 rice outlets in 17 townships of Yangon have been selling low-grade rice at a rate of K2,500 per pyi since 25 August.
It is known that 20,000 bags of Pawsan rice variety, 100,000 bags of 90-day rice variety, and 50,000 bags of Aemahta variety, for a total of 170,000 bags of rice, will be sold at a low price in August. However, according to the daily rice price statements, the price of most of the rice commodity depots increased every Monday in August, when rice was being sold at a low price.
Rice dealers are closely monitoring the prices of rice that will be released on 28 August at the rice commodity depot.
In the palm oil market, the wholesale price reached over K10,000 per viss in mid-August, an extreme price. However, according to Mandalay edible oil price reports, the price of palm oil fell to K8,000 per viss on 27 August, whereas rice and edible oil prices have been under strict guidance since 19 August.
As the wholesale reference price of palm oil is only K4,065 per viss, the oil dealers are expecting that the market price will fall further. Similarly, the opening price of the rice commodity depot on 28 August (today), the rice traders said, is likely to drop significantly.
If the price of rice and oil, which has been rising, falls again, consumers will be able to buy it at a lower price and reduce their daily food expenses. — TWA/CT