Commodity prices tipped to rise in Arakan State

By DMG 24 Mar 2021

DMG Newsroom
24 March 2021, Sittwe 

Commodity prices in Arakan State are expected to increase because of slower commodities flows into the state, according to U Khin Maung Gyi, vice chair of the Rakhine Economic Initiative Public Company. 

Arakan State mainly depends on goods from other townships such as Yangon, Mandalay and Pyay, but the commodities flow from these areas are delayed due to political instability and some goods are out of stock in Arakan, he said. 

“If that situation lasts for the long run, it is not good for the state. The commodities prices will surge. We will face a situation of needing to seek other channels to transport required commodities,” he said. 

The state is weak in manufacturing of different goods, he added. 

“It is necessary to establish small and medium enterprises in Arakan. There is no government to provide money and technology to encourage developing such enterprises under 10 years of democractic government, as well as a few people have tried to start up,” he said. 

Arakan State sources more than 80% of goods as imports from foreign countries and elsewhere in Myanmar, and some goods cannot be bought as much as required due to slow trading, said U Tin Aung Oo, chair of the Arakan State Chamber of Commerce and Industry. 

“Prices surge for some commodities because they are insufficient in the market. If the situation continues, foodstuff prices will also increase,” he said. 

Relevant organisations are working together to prevent commodities prices surges, he said. 

DMG found that a gallon of fuel oil has increased to about K700 higher than the previous price, a viss of peanut oil increased about K2,000, a viss of palm oil increased about K1,000 and a viss of chili increased K500.