August 19, 2016

Sales of pure peanut oil fall as sub-standard variants flood the market

Oil being grinded by an ox drawing grinding machine.
Oil being grinded by an ox drawing grinding machine.

THE peanut oil market is currently being flooded by cheap, sub-standard and fake variants, according to businesspeople involved in the industry.
A scarcity of raw materials within the cooking oil industry has resulted in growing numbers of producers selling sub-standard oil varieties that contain palm oils and chemical additives. This trend has resulted in a decline in business for producers of authentic peanut oil.
“Fake peanut oil, which consists of concoctions of various oil varieties or palm oil with a peanut oil aroma added to it, are selling in the region of K2,000 per bottle. Cooperation between the municipal and health departments is required to control these sub-standard oils from being sold and for legal action to be taken against sellers,” said U Khin Soe, chairperson of the Yangon Region Oil Millers Association.
Imports of foreign cooking oils are also responsible for the more than 50 per cent decline in the domestic peanut oil market. Oil millers have called for tighter controls and higher taxes on imported oils.
“Sales [of domestically produced peanut oil] have also declined because of substitute oils being imported from neighbouring countries. An increase in taxes on foreign imported oils might reduce their influx into the country. There are many service charges locally, not to mention the export of raw peanuts abroad, causing a scarcity of commodities within the country,” said U Win Htun, owner of the Kaung Thant oil mill.
It is known that a nationwide Oil Millers Association will be formed to call for an increase in oil miller rights and accountability for the oil they produce.
Over 2,500 members currently comprise the membership of the Yangon, Ayeyawady and Bago regions’ oil miller associations.


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