CNI News
26 June 2024
According to the government's policy, only half of the palm oil that is required for the country has been allowed to be imported reportedly.
It was carried out like this in order to encourage oil mills producing edible oil within the country, to promote edible oil productivity and to reduce the use of foreign currency reportedly.
Because of the permission to import only half of the palm oil required for the country, there will be an imbalance between supply and demand. Moreover, the price of palm oil will go up and the people from the basic class will suffer higher prices, U Nay Win Soe, in charge of the Myanmar Trade Promotion Organization (MYANTRADE), told CNI News.
" For example, when we need 70,000 tons of palm oil, only 35,000 tons are allowed to be imported. But we must import because we really need it. We have to look for dollars in some way. Or we have to grow other crops from which we have to earn dollars. As half of the palm oil that we need is allowed to import, demand cannot be met. So, the price will go up. Basic class will suffer higher prices." he said.
About 70,000 tons of palm oil is needed for the people within the country and about 30,000 tons only have been allowed to import. It was necessary to promote edible oil production within the country, rather than reducing import of palm oil and to upgrade domestic oil mills, an official from the Myanmar Pulses, Beans and Sesame Seeds Merchants Association, told CNI News.
While seeing the plastic boxes of palm oil
"We must expand the cultivation of oil crops within the country and we must improve edible oil production. Reducing import of palm oil alone isn't sufficient. Moreover, oil mills must be upgraded so that the yield is better." he said.
The expansive cultivation of oil crop project is being currently implemented and preparations are being made to grow sunflower on 1.5 million acres of land reportedly.
Although preparations are being made to grow sunflowers in Ayeyarwady Region, as the region gets much rain, it wouldn't be successful, said U Nay Win Soe to CNI News.
" They are working with the plan of the regional government. Farmers are forced to grow sunflowers. But if you grow sunflowers, it won't be cost-effective. Ayeyarwady Region gets a lot of rain. So, sunflowers are grown there on a small scale. You won't be successful if you grow it on a large scale. Commercial cultivation of sunflowers is not appropriate with the climate and terrain of Ayeyarwady Region." he said.
Although palm oil is being sold at 5,400 kyats per viss, the reference price, as import of palm oil has been reduced by half, the palm oil has been scarce in the market and the people have to be waiting in line to buy some palm oil.
When you wait in line to buy some palm oil, you have to pay about 6,000 kyats per viss. However, if you buy palm oil at the retail shops in the ward, you have to pay 12,000 kyats per viss reportedly.
