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China demand drives sesame prices up in Oct

The prices of sesame seeds significantly rose in October on the back of China’s strong demand, said traders from Mandalay market. The price of white sesame increased from over K1.5 million to K1.66 million per tonne compared to September’s rate, while brown sesame price also jumped to K1.45 million per tonne in October, which is nearly up by K200,000 per tonne against last month. The price of black sesame seeds is flat at over K2.7 million per tonne for the two consecutive months. Last year, sesame seeds were priced at K2.13 million per tonne for white sesame, K1.94 million per tonne for brown sesame and K3.6 million per tonne for black sesame, as per market data updated by Myantrade online. This year, the sesame prices drop by over 20 per cent compared with the prices in the previous years due to the COVID-19 negative impacts.

Consequently, the growers do not make a large profit this year, a trader from Mandalay market stressed. Typically, Myanmar exports about 80 per cent of sesame production to foreign markets. China is the leading buyer of Myanmar sesame, which is also shipped to markets in Japan, South Korea, China (Taipei), UK, Germany, the Netherlands, Greece, and Poland among the EU countries. The EU markets prefer organic-farming sesame seeds from Myanmar, said an official from the Trade Promotion Department. Japan prefers Myanmar black sesame seeds, cultivated under good agricultural practices (GAP), and purchases them after a quality assessment. Black sesame seeds from Myanmar are also exported to South Korea and Japan. Meanwhile, China buys various coloured sesame seeds from the country. This year, Japan has not purchased Myanmar’s sesame yet.

Sesame is cultivated in the country throughout the year. Magway Region, which has gained a reputation as the oil pot of Myanmar, is the primary producer of sesame seeds. The seeds are also grown in Mandalay and Sagaing regions. Of the cooking oil crops grown in Myanmar, the acreage under sesame is the highest, accounting for 51.3 per cent of the overall oil crop plantation. The volume of sesame exports was registered at over 96,000 tonnes, worth $130 million, in the financial year 2015-2016; $100,000 tonnes, worth $145 million, in the 2016-2017FY; 120,000 tonnes, worth $147 million, in the 2017-2018FY; 33,900 tonnes valued $43.8 million in the 2018 mini-budget period, and 125,800 tonnes, worth $212.5 million in the 2018-2019FY, the trade data of Central Statistical Organization indicated.

Source: The Global New Light of Myanmar

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Manufacturing sector attracts 188 foreign enterprises last FY

Majority of foreign enterprises eye the manufacturing sector for investments in the past financial year 2019- 2020, pulling in US$1.128 billion from 188 projects, the Directorate of Investment and Company Administration’s statistics indicated. Of 245 foreign enterprises permitted and endorsed by Myanmar Investment Commission and the respective investment committees between 1 October and 30 September of the last FY, 188 enterprises pumped FDI into the manufacturing sector. However, the quantum of investment in power is higher than in any other sectors. Power sector topped $1.67 billion from eight enterprises.

The agricultural sector has attracted $17.73 million from three projects. The livestock and fisheries sector has drawn five foreign investment projects worth $138.48 million. Two projects worth $300.454 million have been approved in the transport and communications sector. The hotels and tourism sector has pulled in the investment of $53.342 million from five foreign enterprises. The real estate sector has also pulled 1.115 billion from eight foreign projects, while industrial estate sector received $273.49 million from two enterprises. Over $469 million of FDI has been pumped into the other services sector from 29 businesses. At present, the labor-intensive enterprises are facing financial hardship, disputes between the employers and employees and the closure of factories. However, those cases in the industry did not hinder new investments.

The manufacturing enterprises and businesses that need large labor force are prioritized. MIC is endeavoring to clear those kinds of projects so fast that they can start running in the post-COVID-19 period, the DICA official said. Moreover, MIC has shown readiness to accept the projects regarding the production of mask, pharmaceuticals and medical equipment, in responding to the activities of prevention, control and treatment of COVID-19. Myanmar attracted foreign direct investments of more than US$5.68 billion between 1 October and 30 September in FY2019-2020, including the expansion of capital by existing enterprises and acquisitions in the Special Economic Zones, according to the Directorate of Investment and Company Administration (DICA).

Source: The Global New Light of Myanmar

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24 projects with $ 3.5 billion in foreign investment have been proposed to MIC for the 2020-2021 fiscal year

For the 2020-2021 fiscal year, 24 projects with $ 3.5 billion in foreign investment have been proposed to the Myanmar Investment Commission (MIC), according to the Directorate of Investment and Company Administration (DICA). For the next year, they have 24 proposals that the Investment Commission has to consider and then discuss the need. The value of the 24 proposals is estimated at US $ 3.5 billion. These businesses are huge because they are not available at this time.

There may be issues that may be of interest to the state next time, and there are sections that assess the needs of the state. Relevant ministries have to negotiate. After the relevant ministries, the decision must be made after submitting to the higher committees of the relevant ministries. For some countries, investment will be huge. It could also have an impact on the country. The land area is large. If the amount of investment is large, it should be submitted to the government It has to be decided. Due to such activities, this year’s target has not been achieved. The 24 investment proposals are over $ 3 billion. It is in this pipeline for the first month of the next fiscal year 2020-2021.

Due to COVID-19, some businesses were allowed to enter due to traffic restrictions, but were not allowed to do so, leading to a decline in Myanmar’s foreign investment target for the 2019-2020 fiscal year. In the 2019-2020 fiscal year, foreign investment in Burma was projected at $ 5.8 billion, but only $ 5.68 billion came in. However, in the context of COVID-19, investors have limited access; Some businesses are planning to enter but have not yet done so due to traffic congestion, as most of the government offices are located in Rangoon and Naypyidaw. According to Myanmar’s investment promotion plan, foreign investment is expected to reach $ 8.5 billion from the 2021-2022 fiscal year, but these targets will be reconsidered due to the COVID-19 outbreak.

Source: Daily Eleven