Mawlamyine, July (21)
Domestic palm oil prices continue to rise due to a lack of sufficient supply of U.S. dollars amid the military council’s restrictions, the palm oil traders told Than Lwin Times.
Due to restrictions put in place by the military council, the dollar market nearly came to a halt as the exchange rate increased to more than 2,400 kyats per dollar on the black market.
With the dollar shortage crisis, the price of domestic palm oil rose to over 8,000 kyats per viss on July 20, while that of retail market reached over 9,000 kyats per viss.
One supplier said the increase in the price of palm oil is due to the struggle to access hard currency and the reduction of oil amounts supplied by the military council.
He went on to say that, “We heard that they had a meeting and discussed the shortage of dollars. Shortly after hearing the news, the price of oil went up. The authorities set the dollar exchange rate at 1850 Kyats. We had to buy it back on the black market for Ks 2200 or Ks 2300.
Adding that ” the military council has limited distribution of palm oil in order to increase the consumption of locally produced peanut oil and sesame oil. There will not be enough palm oil and we may face a shortage of palm oil in the long run.”
The country’s dollar crisis is driving up the price of palm oil, which is dropping on the international market.
Before the military seized power, the price of palm oil was only around 2,400 kyats per viss and then jumped to over 8,000 kyats per viss after that, and price volatility occurs on a daily basis.
Myanmar mainly imports palm oil from Indonesia, Malaysia, and Thailand and distributes across the country.
News – Than Lwin Times