THE Organisation of Petroleum Exporting Countries (OPEC) Fund for International Development has boosted Myanmar’s edible oil sector with a US$12.3 million loan to increase pro-duction, the United Nations food agency announced.

“The goal of this project is to increase the productivity and value of oil crops and their derivatives, while ensuring low cost edible oil supplies for consumers and assuring that sound policies are implemented and institutions are strengthened to develop a sustainable and competitive oil crop sector,” said Geoffrey Mrema, director of the UN Food and Agriculture Organisation’s (FAO) Agricultural Support Systems Division.

The three-year, $14 million project is one of the largest of its kind, according to FAO.

OPEC has provided the lion’s share and the Myanmar government has covered remaining costs of $2.7 million, with FAO furnishing technical support.
The project is expected to enhance rural incomes and food security in the country, the FAO said on November 9.

To reduce import needs, the project will also cover the construction of two new oil solvent extraction plants and upgrade existing processing facilities, which will increase extraction yields and domestic availability of refined edible oils, the FAO said.

Each year, Myanmar exports 500,000 tonnes of vegetable oils, while importing 150,000 tonnes of palm oil.

“The project is a good example of the integrated approach advocated by FAO towards the improved efficiency and competitiveness of agrifood systems,” Mrema said.

The government has been placing emphasis on growing edible oil crops to meet domestic consumption and is aiming to grow 202,500 hectares of oil palm in Tanintharyi Division, of which about 60,750 hectares have so far been converted to palm plantations.