Palm oil price edges up following Kyat depreciation

Kyat weakening in the local forex market adversely impacted the edible palm oil market, coupled with the shipment problem amid the COVID-19 pandemic and therefore, the prices of imported edible palm oil remained upward trend, the edible oil traders stated.
The price soared to US$1,160-1,180 per 18-litre can at the present time. The price may vary depending on the local currency value. Consequently, the domestic market also saw a price gap of over K1,800 per viss (a viss equals 1.6 kg) in the past nine months. The palm oil is priced over K3,800 per viss in the retail market, Bayintnaung wholesale market’s data indicated.
In early January 2021, production slump in importing countries Malaysia and Indonesia, caused by erratic weather conditions and the COVID-19 impacts, high imports by certain countries under tax reduction, a tax hike on exports in producing countries and the short storage of palm oil in those countries contributed to the rise in edible oil price. The palm oil price stood at $1,055-1,200 per tonne in the foreign market then.
Myanmar brought in US$620 million worth of palm oil in the past nine months (October-June) of the current financial year 2020-2021, according to Myanmar Customs Department.
“The oil palm trees produce fruits in abundance this time. The price is likely to be in the bull market up to October if any trade barrier will not occur,” Chair U San Lin of Myanmar Edible Oil Dealers’ Association said.
“Normally, oil palm trees are plentiful in Malaysia this time. They produce the fruits from June to October,” U San Lin added.
Myanmar Edible Oil Dealers’ Association is attempting to maintain price stability, prevent market manipulation, import the palm oil from foreign countries sustainably for self-sufficiency, distribute the edible oil at a fair price to the consumers and ensure that there will be no edible oil shortage in regions and state when there is a rise in imported oil price.
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 self-sufficiency in the domestic market, about 700,000 tonnes of cooking oil are yearly imported. – KK/GNLM