May 12
THE exports of peanut and sesame seeds came to a temporary halt in order to ensure self-sufficiency in the domestic market, according to the Trade Department under the Ministry of Commerce.
Among the agricultural products that are allowed to be exported through the border posts, oil crops (peanut and sesame seeds) except black sesame are temporarily suspended for exports. The Trade Department released a statement on 9 May to discuss with the related organizations to ensure peanut and sesame export ban.
The export ban over peanut and sesame except black sesame was effective starting from 9 May 2022.
The slowdown of businesses from the consequences of the COVID-19, palm oil export ban by the leading exporting country Indonesia, a drop in the sunflower oil export because of the escalating Russia-Ukraine crisis and international edible oil market conditions negatively affected the edible oil market. As a result of this, export restrictions on oil crops are required to promote food security in the domestic market, the Trade Department stated.
The majority of the HS codes of oil crops and cooking oils are not included in the list of goods that need an export licence. Therefore, for a temporary stop of cooking oil and crops, Customs Department also ceased matters regarding the export declaration and customs clearance process for the oil crops except for black sesame and edible oil in line with the existing rules and regulations from 9 May 2022.
The world-leading palm oil-producing country Indonesia banned exports of palm oil to reduce the shortage of palm oil and control the volatile market prices from 28 April. Consequently, it prompted Myanmar to temporarily block the exports of peanut and sesame seeds for self-sufficiency, and oil traders shared their opinions.
Additionally, under the directive of the Ministry of Commerce, it is forbidden to withdraw oil from oil tanks without notification of the Myanmar Edible Oil Dealers’ Association, according to the association’s statement released on 10 May.
There are 18,097.16 tonnes of palm oil remaining in the palm oil tanks so far, according to a report on 9 May. The statement highlighted the inventory to remain unchanged.
The Supervisory Committee on edible oil import and distribution under the Ministry of Commerce has been issuing a weekly reference rate to govern the market in line with the changes in international rates. The reference rate for a week from 9 to 15 May is set at K6,025 per viss (a viss equals 1.6 kg).
The committee has been closely observing the FOB prices in Malaysia and Indonesia including transport costs, tariffs and banking services and issuing the wholesale market reference rate for edible oil on a weekly basis.
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 oil sufficiency in the domestic market, about 700,000 tonnes of cooking oil are yearly imported through Malaysia and Indonesia. — NN/GNLM
