Although the wholesale reference rate of palm oil is set at K4,650 per viss (a viss equals 1.6 kilogrammes) in Yangon Region, the palm oil prices were valued at over K7,000 per viss in the domestic market. 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 transport 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 11 to 17 July is set at K4,650 per viss. However, the market price is higher than the reference rate. The palm oil price is estimated at over K7,000 per viss in Yangon Region. Additionally, some oil shops get access to limited sources of supply although they sell palm oil at a reference rate depending on the volume quota. The retail price of palm oil is over K8,100 per viss and the wholesale price is K8,000 per viss in Ayeyawady Region.
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.
Source: The Global New Light of Myanmar