The price of palm oil increased by Ks300 per viss in mid-August, resulting in big profits for edible oil dealers.
The price of groceries in general has jumped since the outbreak of recent flooding, including palm oil. The high price has been passed down to local consumers.
The spike in the price of palm oil is also attributed to the rise in price in the world palm oil market, in addition to the low supply of palm oil entering the local market, it is learnt from the edible oil market.
But the unusually high price of palm oil is unreasonable, said U Nay Lin, an edible oil merchant.
The import of palm oil was granted permission starting from mid 2011 with an aim at controlling the palm oil domestic market. However, the market has been unstable in 2016.
Local consumption of palm oil amount to about 300,000 tonnes per year. Therefore, about 30,000 tonnes of palm oil are allowed to be imported monthly to fulfill the requirements of the local consumers. However, the import volume of palm oil from 8th to 12th June was 29,926.6700 tonnes, it is learnt from the import list released by Myanmar Edible Oil Dealers’ Association on 15th August.
The foreign licensed importers can keep the palm oil in their possession for only three months. Therefore, they excessively supply the palm oil to the local market, making the local merchants suffer due to the high price they must pay.
The authorities concerned should intervene in this unstable market of the palm oil. And they also should monitor the price manipulators of the palm oil, merchants said. In August, those manipulators set a high daily price for September and October, saying palm oil was out of stock in the foreign private market, said an observer of the market.
The palm oil price on 1st August was US$650 per FOB tonne, whereas the prices rose to US$750 per FOB tonne. Similarly, the palm oil price at local market has risen by about Ks300 per viss.
Khin Hsaing (MAL)