Imported Edible Oil exceeds Oil Crops Export

Cultivation of oil crop is the third largest agricultural sector in Myanmar. While Exported oil crop brings in US$ 270 million a year, amount of total imported edible oil is US$ 658 million which is more than the twice of exported amount. Last year, total trade volume was around US$30 billion: import accounted for US$ 18 billion and export accounted for US$ 14 billion. The country able to produce edible oil with thousands of mills – 1,000 mills in Sagaing and 1,500 mills in Mandalay Region but only 30% of mills are functioning. Consumption of edible oil is over 800,000 Tonnes per annum but only 107,000 Tonnes of edible oil are produced in locally. The amount used on edible oils over the last four or five years was US$ 200 million and it has now increased by US$ 400 million. There are hundreds of billions trade volume in region of neighboring countries which is reminding Myanmar to make changes in policies to properly benefit from the country’s rich resources according to U Aung Soe, Ministry of Commerce Permanent Secretary. The exported oils were blocked in the past to be sufficient for local consumption. Farmers reduced planting crops which caused high price on locally produced edible oil and businesses start importing edible oil from other countries. Although exports were permitted again, the processing costs of crops are going up and it leads more import demand.