Yangon palm oil reference price set higher on global cues

 

February 28

 

The wholesale reference rate of palm oil for the Yangon market is set a bit higher at K6,400 per viss during a week ending 5 March, tracking global sentiments, which is up from K6,250 recorded last week, according to the Supervisory Committee on Edible Oil Import and Distribution.

 

The rise in palm oil price was attributed to a sharp drop in the palm oil output in major producing countries starting from January 2026, a large stockpile and a surge in demand during the Chinese New Year Festival and Ramadan. According to Reuters and industry reports, palm oil output in major producing nations is experiencing stagnant production levels in the first quarter of 2026, keeping the price supported.  The Department of Consumer Affairs speculated palm oil market constraints that other factors include strengthening Malaysia Ringgits, Indonesia’s tax hike in palm oil export from 10 per cent to 12.5 per cent starting from 1 March, low global stock levels in palm oil reserve situation with tight supplies dropping to 19 per cent in 2025-2026 Financial Year from 20 per cent, increase in palm oil demand ahead of Eid al-Fitr, pushing the FOB price to US$1,078 per tonne in February from $1,047 in January.

 

The Supervisory Committee on Edible Oil Import and Distribution under the Ministry of Commerce has been closely observing the FOB prices in Malaysia and Indonesia, adding transport costs, tariffs and banking services to decide the wholesale market reference rate for edible oil weekly.

 

Despite the reference price, the market price is still high. To control overcharging, the Consumer Affairs Department under the Ministry of Commerce informed consumers of lodging complaints for overcharging through the call centre hotline in late August. The department urges consumers not to buy palm oil at high prices.

 

The Committee notified that any person who is involved in price gouging and oil storage to attempt market manipulation will face legal action under the Essential Goods and Services Law.

 

The department is working together with the Myanmar Oil Dealers’ Association and the cooking oil importing companies to offer affordable rates of imported palm oil for consumers.

 

The complaints for overcharging can be lodged over hotline 1535 of the call centre of the Consumers Affairs Department, or sent to the Facebook page of the department and the region and state departments concerned.

 

The domestic consumption of palm oil is estimated at one million tonnes per year. The local palm oil production is just about 400,000 tonnes. About 700,000 tonnes of palm oil are annually imported through Malaysia and Indonesia to meet domestic demands. — NN/KK