US$19 million worth of over 16,000-tonne palm oil sold at fairer prices

The Consumer Affairs Department under the Ministry of Commerce stated that more than 16,000 tonnes of palm oil, with the estimated value of US$19 million, have been sold at fairer prices, in coordination with the Myanmar Edible Oil Dealers’ Association.
The volume of palm oil that was sold at the subsidized price (K3,700 per viss) is equivalent to $19 million that the oil importers directly purchased the foreign currency from the Central Bank of Myanmar.
About 16,138 tonnes (7.877 million visses) were sold between 20 September and 26 October.
The palm oil importers bought the foreign currency (US$19 million) at the reference rate of the Central Bank of Myanmar and distributed the palm oil to the wholesalers. The retailers are just selling them at present, said an official of the Consumer Affairs Department.
About 12,800 tonnes in Yangon Region, over 840 tonnes in Mandalay Region, over 860 tonnes in Magway Region, over 600 tonnes in Sagaing Region, over 460 tonnes in Bago Region, over 310 tonnes in Shan State, over 110 tonnes in Nay Pyi Taw, over 60 tonnes in Taninthayi Region and over 30 tonnes in Mon State have been sold. The wholesalers and retailers must also resell them to the consumers with a gross profit of less than two per cent.
Under the plan of the Myanmar Edible Oil Dealers’ Association, palm oil is sold at the subsidized price of K3,800 with the mobile market trucks at present, whereas palm oil is priced at about K4,800 per viss in the retail market, the association stated.
The price hike in palm oil is attributed to Kyat depreciation in the local forex market. Additionally, the association notified the consumers not to worry over the supply of the edible oil on 15 July.
The association is also making concerted efforts with organizations concerned and related departments to secure the edible oil sufficiency and offer reasonable prices to the consumers, as per the statement. The association is trying not to occur unnecessary issues regarding edible oil during the global pandemic impacts.
Myanmar Edible Oil Dealers’ Association is attempting to maintain price stability, prevent market manipulation, import palm oil from foreign countries sustainably for self-sufficiency and distribute the edible oil at a fair price to the consumers.
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. To meet the self-sufficiency in the domestic market, about 700,000 tonnes of cooking oil are yearly imported. — NN/GNLM