RISING FOOD AND FUEL PRICES A LOOMING THREAT TO THE POOREST IN MYANMAR, WARNS WFP

Tue 16 March 2021:

The United Nations World Food Programme (WFP) today warned of rising food and fuel prices as the current political unrest starts to impact supply chains and markets.

Across the country, the cost of rice showed an average increase of 3 percent on monitored markets from mid-January to mid-February. However, in a few townships in Kachin state, such as Bhamo and Putao, the increases are 20-35 percent.

“These initial signs are troubling, especially for the most vulnerable people who were already living meal-to-meal,” said WFP Myanmar Country Director Stephen Anderson. “Coming on top of the COVID-19 pandemic, if these price trends continue they will severely undermine the ability of the poorest and most vulnerable to put enough food on the family table.”

“WFP’s food price monitoring shows that food prices are trending upwards in some urban areas, with the retail price of palm oil up 20 percent since the start of February in the peri-urban areas of the main city Yangon,” the UN agency said in a statement.

The cost of rice across Myanmar increased 3 percent on overage at monitored markets from mid-January to mid-February, while the cost of fuel increased 15 percent since February.

The surging food and fuel prices are compounded by the near paralysis of the banking sector, slowdowns in remittances and widespread limits on cash availability, the statement said.

WPP said it was building a contingency food stock to assist some 360,000 people that would allow a switch from cash to in-kind food assistance in case cash availability continues to be limited or market supply is constrained.

Myanmar has been in a state of unrest since February 1, when the country’s military overthrew the civilian government and arrested State Counselor Aung San Suu Kyi and President Win Myint, declaring a year-long state of emergency.

WFP’s food price data were collected from more than 70 townships, across 100 markets and 250 plus separate traders and shops. While monitoring the new trends closely, WFP’s first priority is to ensure its monthly life-saving food assistance continues to reach those in need.