Myanmar junta begins issuing ration books as cooking oil shortage continues

Myanmar’s junta has announced a new rationing system for distributing cooking oil, as prices for basic food items, including rice and palm oil, continue to soar amid worsening shortages. This system will allow households with ration books to purchase a fixed amount of cooking oil at rates set by the regime, according to sources in Yangon and Naypyitaw. The amount ranges from half a viss to one viss (one viss is approximately 1.68kg) per week, depending on the size of the household. Copies of household lists and ID cards must also be presented in order to make a purchase. The junta has set the average price of palm oil at around 5,000 kyat (US$1.50) per viss across states and regions, though prices vary slightly by area. In Naypyitaw, consumers can buy one viss of cooking oil per week for the set price of 6,600 kyat, according to a local resident. Since mid-August, junta-appointed ward administrators in the city have been issuing ration books for oil purchases. “Some people have ration books, others have cards. Many resell the oil at market prices,” the resident said. In the open market, the price of cooking oil has surged to around 13,000 kyat per viss. A resident of a suburban ward in Yangon mentioned that surveys are being conducted for the ration book plan, but details are still unclear. “They just said we’ll need to get ration books. I believe they’ll allocate oil based on household size,” the resident noted. The junta’s wholesale reference price for palm oil in Yangon is currently 5,945 kyat per viss, less than half the market rate. This price discrepancy has led to losses for many oil businesses. Recently, some supermarkets and shops in major cities have suspended palm oil sales due to stock shortages. A Yangon resident complained that few shops sell oil at the junta's set price. “Now, many shops won’t sell at the junta’s price. Some sell to regular customers for over 10,000 kyat.” Due to the escalating prices, working-class families are forced to buy oil in small daily portions. The junta’s frequent crackdowns on shops not adhering to the set prices have led to the emergence of a black market. Currently, the Myanmar Edible Oil Dealers’ Association is limiting sales of palm oil due to insufficient supplies, according to the owner of an edible oil warehouse in Yangon. “The oil association isn’t providing palm oil anymore. As for peanut oil, retailers have also had to pause sales,” he said. Additionally, a program to distribute two-fifths of a viss of oil per household at junta-set prices through wholesalers has been suspended, the warehouse owner told Myanmar Now. The junta’s Ministry of Commerce and oil-importing companies now handle all sales directly, he said. Despite widely reported shortages, an official from the Myanmar Edible Oil Dealers' Association claimed that oil sales are continuing as usual. He declined to provide any further comment. Since the military seized power more than three years ago, the country has faced shortages of essential items like rice and palm oil, which were previously readily available. Long queues to acquire these goods—reminiscent of life under the socialist regime of dictator Ne Win—have again become commonplace. Hit by international sanctions and widespread domestic resistance to its rule, the regime has struggled to stabilise the economy and stem the plunging value of the kyat, which has contributed to the surge in prices since the takeover. On July 27, the junta formed the Union Price Stability Committee with the aim of controlling prices by pressuring merchants through associations like the Myanmar Rice Federation and the Myanmar Edible Oil Dealers' Association. However, critics say its efforts have only led to supply shortages and corruption among ward administrators, and dramatically increased black market activity.

Myanmar junta begins issuing ration books as cooking oil shortage continues

The measure is the latest attempt by the regime to deal with the economic fallout of its overthrow of the country’s elected civilian government

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