Armed Conflicts Widen Commodity Price Disparities

Armed Conflicts Widen Commodity Price Disparities

Arakha Times | November 28, 2024

Ongoing armed conflicts in Myanmar have significantly widened disparities in commodity prices within individual states and regions, exacerbating long-standing differences driven by poor infrastructure.

As a developing country, Myanmar has always faced challenges in transportation networks, resulting in price variations across locations. However, these disparities have grown increasingly stark due to the current conflicts, with the most affected areas being Rakhine State, Shan State, Sagaing Region, Kachin State, and Kayin State.

While some townships along waterways manage relatively better, conditions are dire in landlocked regions, according to U Tin Maung Thein, a resident of conflict-ridden Kyaukme in northern Shan State.

“We no longer have any real currency value here,” he said. “For example, in Mandalay, fuel costs about 3,400 MMK per liter. But here, it’s at least 7,000 MMK, and even then, it’s not always available. If the scarcity continues, the price could rise to 10,000 or 15,000 MMK per liter. In one country, within the same state, we are already facing enormous disparities in living costs and economic systems. That’s absolutely certain. Whoever they are, whatever numbers they mention, we’re the ones who will have to buy and use it in the end. In Rakhine, waterways are still operational, so the situation is manageable. But for landlocked areas like ours, it’s much worse,” he told Arakha Times.

Transportation difficulties have severely impacted the availability of essential goods, particularly fuel. In Yangon, a liter of gasoline costs around 3,000 MMK, while in Shan State it reaches 10,000 MMK. In Rakhine, the price rises to 40,000 MMK, and in Kachin State, it can go as high as 50,000 MMK. In some areas, fuel is entirely unavailable.

U Thein Tun Oo, Director of the Strategic Studies Research Group, stated that addressing these disparities requires nationwide peace and infrastructure improvements.

“From an economic perspective, this is not unusual,” he said. “Myanmar is still a developing country, so transportation costs naturally cause price differences. In areas with poor infrastructure, these disparities are even more pronounced. This is normal.

“The solution is straightforward: improving nationwide transportation networks and achieving peace. Once transportation costs are minimized and stability is restored, food and commodity prices will start to level out. Until then, these challenges are inevitable,” he told Arakha Times.

Beyond transportation challenges, the depreciation of the Myanmar kyat has further exacerbated commodity price hikes. Trade routes to conflict-affected regions have also been cut off, raising fears of prolonged economic and social instability. Analysts warn that such conditions could lead to systemic disparities in the long term.

For now, residents in conflict-affected areas must continue to grapple with soaring prices and dwindling supplies, with no immediate resolution in sight.

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