Myanmar has formed a committee for controlling prices of basic food items in 6-million-population Yangon division in a bid to stabilize the soaring commodity prices, impacted by March 24 government announcement of raising salaries of civil servants to an unprecedented margin.

The committee, chaired by Yangon Mayor Brigadier-General Aung Thein Lin, comprises responsible personnel from a number of associations of rice dealers, edible oil dealers, rice millers and goldsmiths, and will strive for bringing down the commodity prices in the respective sectors, the Khit Myanmar News Journal quoted the committee members as reporting Thursday.

The committee will make market survey in Yangon division's 45 townships on basic food items such as rice, edible oil, salt and onion, the report said, adding that trader, who is found to raise such commodity prices excessively, will be warned or revoked of license or heavily fined.

Meanwhile, some business organizations blamed retailers with raising the prices up to as high as 1,000 Kyats per pyi (2.127 kilograms) from about 600 Kyats for good-quality rice and up to as high as 17,000 Kyats from 14,400 Kyats per bag (1.5 baskets) for such rice. (One basket of rice weighs 34 kg), according to the report.

Local Myanmar Kyat currency devalued from 1,100 Kyats against US dollar to over 1,200 Kyats and then to over 1,300 Kyats to date. The prices of the basic commodities such as rice, edible oil, meat and fish and other daily necessities as well as fuel also went up by over 10 percent, according to traders.

According to an order of the Ministry of Finance and Revenue issued from the newly relocated administrative capital of Naypyidaw (Royal City), the monthly salaries of government employees will be increased with effect from April 1, the start of the next fiscal year 2006-07, by a range from nearly six times to 12.5 times depending on their respective rank status.

The order designated that the lowest-pay-earning basic workers will receive nearly six-time increase of their pay from 3,500 Kyats up to 20,000 Kyats (16 U.S. dollars) a month, while top- ranking officials will see their pay soar as high as over 12-time from 16,000 Kyats up to 200,000 kyats (160 U.S. dollars) per month.

Since 1989, the Myanmar government has raised the salaries of government servants for three occasions by 180 percent, 26 percent and 500 percent respectively.

Source: Xinhua