Junta-linked supply controls fuel food crisis in Kyaukphyu

By Admin 27 Jun 2026

DMG Newsroom

27 June 2026, Kyaukphyu

Military officers and junta department officials in the junta-controlled port town of Kyaukphyu have allegedly established a monopoly over import channels, driving up food prices and worsening economic hardship for local residents, sources reported Saturday.

Since the military blockade isolated Kyaukphyu at the end of 2023, residents have depended heavily on limited maritime cargo shipments and air freight routes from Yangon for essential supplies.

Local traders said a monthly allocation of three cargo vessels is being controlled by junta-linked officials and affiliated merchants, restricting access for independent businesses.

“Independent merchants are unable to obtain direct import permits,” a local grocery retailer said. “We have to purchase essential goods from military-linked suppliers at inflated wholesale prices, forcing us to raise prices for consumers.”

Local sources said the situation intensified in late 2025 after Captain Aung Phyo Oo, also known as Dat Si, an officer from Light Infantry Battalion No. 34 based in Kyaukphyu, took control of the Township General Administration Department’s import licensing system. Since then, import permits have reportedly been limited to military-linked businesses.

“The supply system is being used to manipulate prices,” a civil servant said. “When cargo shipments are delayed, prices rise immediately. Some traders store goods during shortages to increase profits while ordinary people suffer.”

The restricted supply chain has severely weakened the purchasing power of low-income families, with growing numbers of displaced and vulnerable residents struggling to afford basic food.

Local monitors reported a rise in urban poverty, including more residents seeking assistance and begging for food in public areas.

Market monitoring in Kyaukphyu shows sharp price increases for essential commodities. A bag of low-grade rice now costs K25,000, cooking oil has reached K20,000 per liter, onions exceed K10,000 per viss, and dried chili pepper costs more than K40,000 per viss.

Meat and fish prices have also surpassed K40,000 per viss, putting basic nutrition beyond the reach of many daily wage workers.

The economic crisis continues amid ongoing conflict and prolonged restrictions on movement and trade.

Humanitarian groups warned that the blockade is creating severe hardship for civilians trapped inside the military-controlled town, as well as thousands of internally displaced people seeking refuge in areas administered by the Arakan Army.