The wholesale price of palm oil reached its highest at K10,000 per viss in the local market in 2022.
The country imported about one million tonnes of palm oil every year before 2021 and the palm oil import volume was reduced starting in 2021. In 2022, the country imported only about 40,000 tonnes per month, according to the market.
It imported 58,609 tonnes in July 2022 which was the highest volume while there were 25,020 tonnes in May and 28,122 tonnes in August. About 80,000 tonnes of palm oil were imported per month previously and the import volume decreased. Some oil dealers raise the prices for the reasons of that decreasing import volume. The authority started issuing weekly Yangon-based basic reference prices every Monday in 2022.
The importers also sell the oil to the public by trucks as per the reference prices in Yangon Region. However, the daily sale in the market is 1,500/2,000 tonnes and the sale rose one time more than the normal demand on 17 March before 18 March 2022 when most of the oil wholesale centres of the Bayintnaung market closed for increasing oil prices of the Yangon market.
In 2022, the oil price rose about K10,000 per viss in August 2022 for reducing palm oil imports and increasing the exchange rate.
The oil price was up about K4,000 per viss than the reference prices. In December, the import volume was 45,708 tonnes and the price was about K5,000 per viss outside the market. The oil exchange price was only K700 per viss more than the reference price.
On 9 January 2023, the price rose about K1,000 per viss for the lower oil price of foreign countries and currency exchange rate despite the oil import. The wholesale price was about K6,100 per viss on that day.
After three days, the prices declined by about K600 per viss and it was K6,000 per viss on 16 January while K6,150 on 19 January and only K5,800 on 21 January. Those who store oil manipulate prices of oil in the market depending on arrival volume of oil.
The world palm oil price reached its highest price while Indonesia, the world’s largest producer of palm oil, imposed a strict policy on palm oil export in May 2022. — TWA/KTZH
