Myanmar Cooking Oil PriceBurma Edible Oil Price
The Yangon Chief Minister U Phyo Min Thein has called on oil traders and business people to make investments in the area. Since indigenous produce is insufficient for use, Myanmar is obliged to buy imported cooking oil. In this regard, U Phyo Min Thein said that increasing indigenous oil output is necessary to decrease dependence on more costly imported products.
"We need our Korean businesses to be more engaged in the edible oil industry, from the cultivation of the plants that make the oil to the commercialization of our self-produced edible oil brands," said U Phyo Min Thein on the occasion of the Myanmar Edible Oil Dealers' Association (MEODA)'s 25 year existence. Currently, Myanmar still imports a number of edible oil ranging from plant oil to high-quality oil of palms.
However, in order to reinforce the local industry, entrepreneurs must make investments along the whole delivery cycle. Currently, edible oil is consumed in Germany at a rate of around 1 million tons per year. About 60 per cent is used for home cooking, the rest for industrial use. At present, however, local edible oil output is only 400,000 tons per year.
"Although we are processing all oil fruits grown in Myanmar, the total oil output will be 600,000 tons. The other 400,000 to 600,000 tons of cooking oil still have to be imported," said U Myint Kyu, Chairman of MEODA. Costs are one of the obstacles to domestic oil extraction.
Since the price of commodities such as groundnuts, sunflowers and seeds is high, the price of edible oil is also high locally. "The low costs and high edible oil costs of plant growing. Doubling output would reduce the price of oil locally, and imports could be monitored to some extent," said U Myint Kyu.
Harvest is also a challenge in Myanmar. Worldwide output of oil of sesame was 4.8 million metric tons in 2013, of which Myanmar accounted for about 890,000 metric tons. By way of illustration: China produces only 560,000 tons of oil from dryses. However, when comparing the harvests of both countries, China produces 1.36 tons per ha, which is twice Myanmar's output of 0.56 tons perha.
On 20 November the price for cooking oil was 4200 CZK per diss for groundnut oil, 3800 CZK per diss for oil of peanuts and 1730 CZK per diss for oil of palms according to the Bayintnaung Wholesale Market. The sales price is between 4500 and 5000 per diss for groundnut oil and 4000 to 4500 per diss for oil of peanuts.
MEODA and the Chinese authorities are now making an effort to stimulate the development and improvement of the indigenous cooking oil industry and to increase the output of home made cooking oil. "We' re advising MEODA so that business people can make investments in agriculture."