Food prices rise further in Arakan State following birth of K20,000 banknote

By Admin 03 Aug 2023

DMG Newsroom
3 August 2023, Sittwe
 
Commodity prices, including the cost of basic foodstuffs, have soared in Arakan State after Myanmar’s military regime this week began issuing a new banknote denominated at 20,000 kyats, according to local people in Arakan State.
 
The price of a case of vegetable oil containing 12 one-litre bottles has increased from 54,000 kyats to 60,000 kyats. And a pound of mid-grade coffee has increased from 6,000 kyats to 7,300 kyats, according to grocery owner Daw Ma Che from Sittwe.
 
“Prices have increased since the plan to issue 20,000-kyat notes was announced. Prices have increased steadily,” she said.
 
Not only basic food items but consumer goods have increased in price as well, according to local grocers.
 
The price hikes are forcing people to tighten their belts, said Ma Than Sein from Aung Mingalar Ward in Sittwe.
 
“Prices have doubled for all the products. A tampon was previously only around 800 kyats. It is 1,800 kyats now,” she said.
 
The junta-controlled Central Bank of Myanmar announced last month that it would begin issuing the K20,000 banknotes on July 31. The denomination is double the value of the current highest banknote, the K10,000 bill. 

The regime has said the new banknote is being issued to commemorate the construction of a giant Buddha statue and the first anniversary of a “white elephant” calf.
 
Junta spokesman Major-General Zaw Min Tun told media that the regime can properly manage the consequences of issuing the 20,000-kyat notes.
 
Others are not so sure. 

The regime has already proved incapable of bringing down inflation, former Lower House lawmaker U Aung Thaung Shwe criticised.
 
“Because we can’t increase production in Arakan State, and we have to rely on goods from other parts of the country, inflation and food prices have increased,” he said.
 
The price of rice, however, is stable in Arakan State despite the fact that other basic foods have increased significantly in price.
 
Locals say they are concerned about malnutrition and possible starvation if prices continue to increase.
 
Daw Khin Mya Than from Pauktaw said: “All the goods have increased in price. We have to reduce our household expenditures. Prices have increased since the plan to issue 20,000-kyat notes was announced. If it continues like this, I am afraid people will face starvation.”
 
Myanmar has been in a state of chaos since the February 2021 military coup, with people suffering from unprecedented levels of inflation, unemployment, fresh displacement and a growing sense of lawlessness.