Power failure blamed for charcoal price spike in Maungdaw District

29 Oct 2020

Kyaw Myo Aung | DMG
29 October 2020, Maungdaw 

Charcoal prices have increased in Maungdaw District due to a district-wide electricity blackout that has lasted more than 10 days, forcing local residents to use charcoal for cooking. 

It’s been lights out since about noon on October 18, and the price of charcoal has increased from K4,000 per 36-lb sack to K9,500 in Maungdaw Township as a function of changes to the supply-and-demand equation, according to local charcoal seller Daw Abu May. 

The price spike has caused financial woes for low-income families.  

“We have to cook with charcoal due to the blackout,” said Daw Ma Tin Nyint, who sells fruit at the central market in Maungdaw. “And we are only allowed to sell at the market half a day. While the profits have declined, the living costs have increased and we are in trouble.” 

Maungdaw primarily brings charcoal in from Buthidaung, but forestry authorities are taking a tough line on charcoal production due to its contribution to deforestation, putting additional upward pressure on prices. 

“Charcoal is mainly made in Buthidaung, but forestry officials are making arrests on the way. So the supply is effectively blocked, and the prices have increased as a result,” a local resident said on condition of anonymity. 

Charcoal prices have also increased in Buthidaung, from K3,000 per 36-lb sack to K6,000. 

The district’s electricity outage is due to downed power lines between Hteeswe and Thaungdaya villages in Rathedaung Township, according to U Hein Moe Htet, an engineer from the Maungdaw District electrical engineering office. 

“The repair won’t take long, two or three days at most. But the problem is we are not yet allowed to go and fix the power lines. A few days ago, electrical engineers from Rathedaung Township went to the site, but they were not allowed and had to return from near Hteeswe,” he told DMG. 

In August, both Maungdaw and Buthidaung townships suffered blackouts for more than 10 days after artillery fire hit a power line. In April, the two townships and neighbouring Rathedaung Township also experienced blackouts that lasted more than 20 days.