The Commerce Department ordered the Myawaddy Trade Zone to temporarily halt the export of peanuts and sesame, with the exception of oilseeds, on May 9. (sesame).
According to market sources, peanut prices decreased by 200 to 300 kyat per category after the regulation, and the market suddenly failed.
“When we heard that exports would be prohibited, we stopped buying on the market,” an oil refinery owner remarked. Purchases came to a halt as gas stations waited for the dip to stop. “If it closes, the price will drop,” he said.
Oilseeds such as peanuts and sesame are primarily exported across the border to China and Thailand, where they are purchased for refinement by local oil mills.
Traders claim that the temporary ban on crude oil crop exports is due to a lack of palm oil imports to meet domestic demand.
“We can’t import enough palm oil, therefore raw oil is being shut down,” he explained. Oil refineries will be operational. “Prices may plummet,” a dealer predicted.
Since April 28, exports from Indonesia, the world’s leading producer and exporter of palm oil, have been impacted hard, causing local oil prices, especially palm oil, to rise.
Oilseed prices, such as peanuts and sesame, also increased.
The current price of red peanuts in Mandalay is 3,500-3,600 kyats per pound. A hundred S1 hairs will set you back 3600-3800 kyats. A pound of red hair costs between 3,200 and 3,350 kyats. The Mandalay Commodity Exchange does not have sesame prices open today.
A pound of bean oil costs 8,000-8,500 kyats in the Mandalay market. The price of sesame oil is 7,500-8,000 kyats per kilogram.
edible oil imports The basic wholesale reference price of palm oil is fixed at 6,025 kyats per cent by the Stock Exchange Supervision Committee, while it is sold at around 7,000 kyats per cent in overseas markets.
The coup junta established up an oil crop extension commission. Agricultural scholars remind out that making a group wealthy is not necessary.
Myanmar’s Military Council Investment Commission has welcomed local and foreign investors to invest in various edible oil mills under joint venture contract farming, including oilseed seed production.
The military council has established a committee to expand oilseeds to encompass 1.5 million acres of sunflower in the fiscal years 2022-2023.
“We have developed associations,” an agriculture researcher remarked. Take, for example, the Rice Association. Farmers’ cooperatives with low prices.
That is to say. There are traders and brokers in the middle, as well as direct buyers. So, whether or not it’s paddy. In any case, merchants are the true wealthy. Farmers do not become wealthy. This happens because the policy is incorrect. It is not necessary to have a team if you already have one. There is a group of people. Being well-organized is advantageous. But the idea is that this is a group effort. It is only for one group. “If it weren’t for the farmers, this policy would fail,” he told the DVB.
The junta and crony firms pledged to cultivate agriculture during previous regimes. For selfish reasons, imports of machinery and inputs were sought, and subsistence farming failed.
“The notion is that if the soil is good, the yield would be good,” an expatriate agronomic explained. But why is it that we have a poor output? The Ministry of Agriculture must establish policies to increase yields. The Japanese government assisted me in staying in Japan for a long time. Another thing you can do with a cooperative is to encourage it to grow. Finally, the government should take the lead in marketing their products. We’ve arrived in China. The government must ensure that India or India is not shut down if they do not agree with it. “As a result, we need to put a policy in place to prevent this,” he told DVB.
Domestic production of edible oil in Myanmar is just about 400,000 tonnes per year, hence around 800,000 to 100,000 tonnes are imported each year. That amount is worth more than $ 800 million.
To lessen the demand for foreign currency, the military council is seeking to grow domestic oilseeds. However, on the ground, the country’s volatility has pushed many farmers to quit their lands, and foreign investors are in a perilous position.
Domestic palm oil prices are currently increasing as the kyat depreciates dramatically as international palm oil prices and transportation expenses rise.
Burma will not only have a surplus of domestic oil, but will also become a significant exporter of edible oil, according to the coup leader.