CNI News

20 July 2022

Falling fuel prices failed to benefit the agriculture sector, farmers told the CNI.

Farmer U Aung Kyaw Mya, who was currently growing monsoon paddy, told the CNI that  falling fuel prices failed to benefit farmers because of the gaps between company price and market prices.

“We still have to buy fuel at K 2,500 per litre. So, farmers in Rakhine State cannot enjoy the benefits of falling fuel prices. If we can go and buy fuel at companies, we get fuel at cheaper prices. As we have to buy fuel in the market, we cannot get fuel at cheaper prices. Companies cannot sell as much fuel as we need. They can sell only K 20,000 worth of fuel to a car. As we cannot buy as much fuel as we need from companies and we have difficulties,” he said.

Although the drop in fuel prices have no impact on agriculture, transportation costs have fallen, farmer U Ko Ko Lay told the CNI.

Previously, farmers had to pay K 70 per viss for transportation of their goods to towns but now transportation charges have dropped to K 50 per viss.

“Farmers have to transport their crops by using cars. When diesel prices dropped a little, they can save some money for plastic and paper bags used to wrap guavas. We had to buy fuel and fertilizers at higher prices. Now, crops are being harvested and fuel prices dropped when we no longer needed to use them as much as before. So, we cannot enjoy the benefits of falling fuel prices considerably,” he explained.

During the rainy season, some farmers have to halt their agricultural activities and do not need to use as much fuel as before.

However, U Khin Soe, a retired state officer from Mon State Salt Industry Department said that it would be of benefit for farmers if fuel prices continued to fall until summer.

“Farmers, whether they work on agricultural farms or in salt farms, need fuel. Salt farmers have to spend about 20 percent of their production costs on fuel. When fuel prices were higher, they had to spend about 30 to 35 percent of production costs on fuel. The lower the production costs, the higher the profits,” he said.

On 19th July, diesel was sold at K 2,155 per litre while premium diesel was available at K 2,210 per litre. Octane 92 and Octane 95 are distributed at K 1,770 and K 1,830 per litre respectively. Fuel prices have dropped recently.