Editorial: Added ‘Security’ Delays Commodity Flows, Causes Food Insecurity in Arakan State

By DMG 15 Jul 2022

Last month, a video of a man taking a sickle to a cabbage patch went viral on social media. The man was reportedly removing the cabbages to grow other crops in the field because the price of a head of cabbage had fallen below K100. The cabbage slashing reportedly occurred on the farmlands of ethnic Danu people in Shan State. 

But in Arakan State, residents are paying more than K1,000 for a head of cabbage, grown in that very same Shan State.  

Geographically, Arakan State is separated from mainland Myanmar by the Arakan Roma mountain range. Because the state today does not produce enough food for its own population and relies on the mainland for many other goods as well, consumers in Arakan State are at the mercy of the efficiency of transportation networks that connect Myanmar proper and its west coast.  

The people of Arakan State are thus accustomed to paying a markup on shipped goods compared with their counterparts in mainland Myanmar. The extent to which this affects Arakan State consumers depends on the type of good, but vegetables — like cabbage — are particularly worthy of a closer look, because they are consumed every day by people of all socioeconomic strata. Today, rising food prices are taking a particularly heavy toll on low-income families.  

These price hikes are due largely to high transportation costs resulting from soaring fuel prices, and losses among perishables shipments during the transportation process as produce and other cargo is unnecessarily delayed by stepped up junta inspections.  

Normally, it takes only three to four days to transport goods from Shan State to Arakan. But the recent implementation of new military checkpoints along routes into Arakan State have lengthened the transportation time to up to 10 days now. 

Even during the peak of the Covid-19 pandemic, cargo trucks were somewhat exempted from Covid-19 rules and regulations so that such losses could be mitigated. But with military tensions rising between the Myanmar military and the Arakan Army (AA) in recent months, most cargo trucks and passenger buses are not allowed to pass military checkpoints at night, thereby causing significant delays in the transportation process. 

The need for truckers to spend more time on the roads means prices can change en route, which can negatively affect entrepreneurs, from wholesalers on down to small shopkeepers. For example, gas stations were recently told to sell at reference prices set by authorities. But as the chairman of the Arakan State Fuel Suppliers Association pointed out, fuel price regulation of such a sudden nature is loss-making for suppliers who are dealing in global markets.  

“Our order for fuel a few days ago has not yet arrived in Arakan State. If we are to sell at today’s prices, there is a gap of K100 per litre, so local suppliers will make a loss,” said the chairman, U Than Hlaing. 

There are three ways to transport goods to Arakan State: via roadways, waterways, and the air. On a per unit basis, the third option is much more costly than the other two. 

By water, it takes five to seven days to get from Yangon to Arakan, obviously a poor option for perishable goods. The most cost-effective option is to go by road, which previously took less than 24 hours from the commercial capital. But due to tightened security checks along the road and a curfew order, passenger buses and cargo trucks now often have to spend two to three days on the road. 

The prices of goods in Arakan State have gone up almost without exception, from basic foodstuffs to agricultural inputs and construction materials. The price of edible oil, a kitchen staple, has shot up from K1,800 per litre before the coup to over K5,000 less than 18 months after the military takeover. 

Arakan State is not alone in enduring a sharp rise in the cost of living. Myanmar as a whole and countries around the globe are struggling with significant inflationary pressures, but prices are even higher in Arakan State due to the restrictions on commodity flows. 

The consequences of these restrictions extend beyond higher prices, including shortages that leave store shelves bare and pharmacies without needed medicines. 

Myanmar’s military regime would do well to consider the deleterious effects of its security policies vis-a-vis the transportation industry, and adjust those policies accordingly. At the same time, local business owners and leaders must act to boost Arakan State’s agricultural and manufacturing industries, to ensure food security in the state and greater self-sufficiency across a range of consumer goods. In this regard, a challenge could become an opportunity for economic development.