CBM sells US$77 million to edible oil sector


January 27, 2022

The Central Bank of Myanmar (CBM) sold US$77 million to the edible oil sector to distribute the oil at subsidized prices.

Between 15 September 2021 and 13 January 2022, the Central Bank of Myanmar sold $77 million multiple times to the oil importers at the reference rates of K1,753-K1,820.

Of them, $74 million worth of over 57,000 tonnes of palm oil has been imported so far. More than 53,000 tonnes of palm oil have been distributed. Over 3,900 tonnes are left for sales, said an official of the Consumer Affairs Department.

Additionally, the CBM sold $3 million to three oil companies at the reference rate of K1,781 on 13 January. However, the process is not finished yet. So, the volume of palm oil which is equivalent to $3 million is remained to put on sales.

Myanmar Edible Oil Dealers’ Association set the price of palm oil depending on the CBM’s reference rate and the prices of imported oil.

Consequently, the relevant oil importing companies distribute the palm oil at the daily set price by the association and submit a sales report to the steering committee on the importation and distribution of the edible oil, according to the Consumer Affairs Department.

The consumers can complain about overcharging for edible oil which is sold at the subsidized rate under the public distribution system, the Ministry of Commerce stated.

If any overcharging is found, the consumers can complain about it through the contact numbers (09 43666668) of Yangon Region Consumer Affairs Department and 09 262079105, 09 965136377) of the Myanmar Edible Oil Dealers’ Association.

The edible oil remains on the high side of around K4,900 per viss (a viss equals 1.6 kilogrammes) in the Yangon market, following Kyat devaluation on the US dollar in the domestic forex market.

The retail price of oil is pegged at K4,400-K4,500 per viss at present. The edible oil is distributed with the mobile market trucks, in coordination with the Myanmar Edible Oil Dealers’ Association.

The domestic consumption of edible oil is estimated at one 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. — NN/GNLM