Possible shortage of edible oil no longer a concern: Commerce Ministry official

By DMG 31 May 2022

DMG Newsroom
31 May 2022, Sittwe  

With the recent resumption of palm oil imports from Indonesia, there is no need to worry about a shortage of the multi-use oil in Myanmar, according to U Myint Cho, chairman of the Edible Oil Import and Distribution Supervision Committee under the Myanmar junta’s Ministry of Commerce. 

Indonesia, which had been responsible for supplying 96 percent of Myanmar’s palm oil demand before it abruptly halted its palm oil exports in April, resumed exports of the popular edible oil on May 30. 

“I can confirm that Indonesia has allowed the re-export of palm oil since May 30. People don’t need to rush to buy edible oil for fear of rising oil prices. At present, there are enough stocks of edible oil for the people of Myanmar,” said U Myint Cho. 

“At present, there are about 8,000 tonnes of edible oil stored in the tanks, and 5,500 tonnes of oil imported from Malaysia will be sold at fixed prices,” he added. 

“We have sufficient stocks of edible oil for domestic consumption. Indonesia will start re-exporting palm oil today, and ships carrying edible oil will arrive in Myanmar in the next three to four days,” he explained. 

Yet edible oil distributors in Arakan State have said they have not been able to buy edible oil from wholesalers in Yangon since May 28, and are resigned to selling their existing stocks. 

“We could not buy cooking oil due to a shortage of palm oil in Yangon. So we are selling the remaining stocks,” said U Hla Maung Thein, a local oil distributor in Arakan State. 

While national demand for palm oil stands at about 2,000 tonnes per day, prior to the resumption of Indonesian imports, Myanmar reportedly had only 18,000 tonnes in its stockpiles. The possibility of a prolonged suspension of Indonesian imports had prompted the Edible Oil Import and Distribution Supervision Committee under the Commerce Ministry to instruct suppliers to limit distribution to only 1,000 tonnes per day, or half of the daily demand. 

The Consumer Affairs Department of the military regime’s Commerce Ministry has also threatened legal action against palm oil distributors who unfairly increase prices or keep large stockpiles for the purpose of speculating on the edible oil market, an official from the department told DMG last month.