Myanmar palm oil prices drop due to weak global trends

Myanmar’s domestic palm oil reference prices have been on a downward trend due to weak global cues, with a significant decrease of K890 per viss over the past five months, according to the Supervisory Committee on Edible Oil Import and Distribution under the Ministry of Commerce.

As Myanmar heavily relies on imported edible oil to meet its growing domestic demand, the imported CIF price for palm oil has been steadily declining since January. The wholesale reference price dropped to K6,390 per viss on 1 June from K7,280 at the beginning of the year.

To determine the domestic reference rate for edible oil, the Supervisory Committee closely monitors FOB prices in Malaysia and Indonesia, taking into account transport costs, tariffs, and banking services. The committee issues weekly reference prices every Monday through the Department of Consumer Affairs website and its Facebook pages.

Despite the reference price guidelines, the market price for palm oil remains high. In response to potential overcharging, the Consumer Affairs Department encourages consumers to report any instances of overpricing through a call center hotline and advises against purchasing palm oil at inflated prices.

Any individuals found engaging in price gouging or manipulating the market through the storage of oil will face legal action under the Essential Goods and Services Law. The Department of Consumer Affairs is collaborating with the Myanmar Oil Dealers’ Association and cooking oil importing companies to provide affordable rates for consumers.

Complaints regarding overcharging can be submitted through the call center hotline or via the department’s Facebook page, as well as through regional and state consumer affairs departments. With an estimated annual domestic consumption of one million tonnes of palm oil and local production of only 400,000 tonnes, Myanmar imports approximately 700,000 tonnes of palm oil annually from Malaysia and Indonesia to meet demand.

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In conclusion, Myanmar’s domestic palm oil reference prices are influenced by global market trends and government monitoring, with efforts to ensure fair pricing and accessibility for consumers amid fluctuating international prices.