Palm oil wholesale reference price set at K4,860 per viss, price up by K700 against last week

August 24, 2022


The wholesale reference rate of palm oil in the Yangon market is set at K4,860 per viss, indicating an increase of over K700 per viss compared to the previous week’s rate, according to the Supervisory Committee on edible oil import and distribution.

The Supervisory Committee on edible oil import and distribution under the Ministry of Commerce has been closely observing the FOB prices in Malaysia and Indonesia including transportation costs, tariffs and banking services, and issuing the wholesale market reference rate for edible oil on a weekly basis.
The reference rate of palm oil in the Yangon market for a week from 22 to 28 August is set at K4,860 per viss, whereas the reference price for a week ended 21 August was set at K4,140 per viss. The figures showed an increase of K720 per viss. However, the current market price is higher than the reference rate.

In spite of the reference rate, the traders are found to raise the price to K9,000 per viss in markets.
To tackle this, mobile market trucks operated by oil importing companies, in coordination with Myanmar Edible Oil Dealers’ Association, were back to business in some townships on 17 July in order to offer palm oil at a subsidized rate. They sell palm oil at K5,000 per viss to consumers directly. However, there are limited sources of supply although they directly sell the palm oil at a reference rate depending on the volume quota.

If those retailers and wholesalers are found overcharging, storing inventory intentionally and attempting unscrupulous action to manipulate the market, they will face legal action under the Special Goods Tax Law, MoC released a statement.

The Ministry of Commerce is striving for the consumers not to worry over the supply of edible oil. The ministry is also trying to secure edible oil sufficiency, supervise the market to offer a reasonable price to the consumers, maintain price stability and prevent market manipulation.

The domestic consumption of edible oil is estimated at 1 million tonnes per year. The local cooking oil production is just about 400,000 tonnes. To meet the oil sufficiency in the domestic market, about 700,000 tonnes of cooking oil are yearly imported through Malaysia and Indonesia. — NN/GNLM