Monthly Archives: January 2021

The price of Myanmar oil crop peanuts in the Mandalay pulses and beans market is significantly rising due to a sudden spike in demand by China, Mandalay bean traders said. During the previous years, the market used to cool down when Chinese New Year was approaching. This year, they are steadily purchasing the varieties of peanuts and hikes up the price, said the owner of Soe Win Myint depot in Mandalay.

The bean market used to suspend during Chinese New Year. Surprisingly, oil crop peanuts are highly demanded. The price consequently gains on the strong demand. Local millers cannot keep up with Chinese buyers, and so, they are forced to stop running the mills for now. The peanut prices have recently risen, moving in the ranges of K2,200-K3,500 per viss depending on varieties, showing a rise of K200-500 per viss for two weeks.

The price is likely to remain high, the traders guessed. The peanuts from Nay Pyi Taw, Tatkon, Pyinmana, Myinmu and Pakokku areas are abundantly flowing into Mandalay market in the recent days. Mandalay wholesale centre, which has been suspended for four months due to the COVID-19 resurgence, was reopened starting from 21 January 2021, in line with health guidelines on coronavirus issued by the Ministry of Health and Sports.

Source: The Global New Light of Myanmar

Myanmar exported over 500,000 metric tons of rice and broken rice worth US$191.717 million to China in the first quarter of the current financial year 2020-2021, which accounts for 77.4 per cent of overall rice exports, Myanmar Rice Federation’s data indicated. The erratic weather in China has caused damage to some farmlands in China. So, the strong trend is expected, Muse Rice Wholesale Centre stated. At present, Chinese provincial government has not granted the permit on rice import. However, the traders are buying rice with the remaining permit quota of 2020 through the border. The authorized companies for rice export to China through border posts is likely to increase to 50 this year, after inspecting Myanmar rice companies and rice mills in line with SPS Protocol (Sanitary and Phytosanitary Protocol).

However, the deal has not been confirmed yet by China. If they give the go-ahead to it, the trade will surge to three times for sure. The border trade will remarkably rise, said U Min thein, vice chairman of Muse Rice Wholesale Centre. Moreover, the wholesale centre in Muse is endeavouring to practice only cash transaction rather than credit transaction to avoid fraud case, traders said. The federation has also notified the traders to enter into a firm contract and strictly adhere to trade regulations. Myanmar Companies that have difficulties entering into a firm contract and complying with regulations can contact the federation or Muse wholesale centre. MRF released a notification on 27 November 2020. Beyond China, other foreign countries are also purchasing Myanmar’s rice.

The low-quality rice, mainly designated for exports, is fetching high price in the domestic market on the back of strong demand from external markets amid the production slump in the 2020 monsoon paddy season. The rice price is likely to remain high before the 2021 harvest season of summer paddy, traders said. Additionally, Myanmar regained rice market shares from certain countries on account of high quality, said U Ye Min Aung, chairman of Myanmar Rice Federation. Myanmar shipped over 648,158 metric tonnes of rice and broken rice to foreign trade partners between 1 October and 1 January this FY, generating an income of over US$245.096 million, as per MRF’s data. ASEAN countries constitute 9.61 per cent of Myanmar’s total rice exports with over 62,265 tonnes. In comparison, 11.62 per cent of total rice exports in Myanmar goes to European Union countries with over 75,341 tonnes, followed by African countries with over 2,940 tonnes. Over 5,914 tonnes of rice were shipped to other countries.

Myanmar has exported rice to 31 foreign markets so far. China is the leading buyer of Myanmar rice, followed by the Philippines and Poland. Malaysia is the fourth-largest buyer and Viet Nam, the fifth-largest buyer of Myanmar rice. Meanwhile, Myanmar sent broken rice mostly to China, followed by Belgium, Thailand, Netherlands and Viet Nam. Broken rice was placed in 15 foreign markets. The export price of Myanmar’s rice is relatively lower than the rates of Thailand and Viet Nam. Yet, the prices are higher than those of India and Pakistan’s market prices, MRF’s data showed.
Last FY, the country surpassed the export target of 2.4 million tonnes, sending over 426,611 tonnes to neighbouring countries through border trade and over 2.15 million tonnes of rice and broken to foreign trade partners via maritime trade, totalling over 2.58 million tonnes. Next, Myanmar yearly produces 13 million tonnes of rice. There is self-sufficiency in the domestic market, and rice reserves have been stored in Yangon, Nay Pyi Taw and Mandalay. Myanmar shipped 3.6 million tonnes of rice in the FY2017-2018, an all-time record in rice exports. The export volume plunged to 2.3 million tonnes, in the FY2018-2019.

Source: The Global New Light of Myanmar

The agricultural exports have touched a high of US$1.46 billion as of 15 January 2020 in the current financial year since 1 October 2020 on the back of strong global demand for agricultural products amid the coronavirus impacts. The figures reflect a significant rise of $408.526 million this FY. The agro exports soared from $1.05 billion in the corresponding period of the 2019-2020FY, according to the trade figures released by the Ministry of Commerce. Myanmar’s agricultural exports rose regardless of the coronavirus’s impact on foreign demand for other export groups. In the exports sector, the agriculture industry performed the best, accounting for over 22 per cent of overall exports.

The agricultural sector’s top export items are rice and broken rice, pulses and beans, and maize. Fruits and vegetables, sesame, dried tea leaves, sugar, and other agro products are also shipped to other countries. Myanmar agro products are primarily exported to China, Singapore, Malaysia, the Philippines, Bangladesh, India, Indonesia, and Sri Lanka. Sometimes, the export market remains uncertain due to unsteady global demand. The country requires specific export plans for each agro product. They are currently exported to external markets based upon supply and demand. Contract farming systems, regional and state agriculture departments, exporters, traders, and some grower groups are required to meet production targets, said an official from the Agriculture Department.

The Commerce Ministry is working to help farmers deal with high input costs, procurement of pedigree seeds, high cultivation costs, and variable weather conditions. Myanmar Agricultural Development Bank (MADB) under the Ministry of Planning, Finance and Industry has notified the farmers of agricultural loans for the current financial year. In a bid to mitigate the impacts stricken by the COVID-19, the bank also provided an additional loan of K50,000 per acre under the COVID-19 Special Relief Loan Scheme between June and September 2020. Moreover, it cut the loan interest rate from eight to five per cent during the COVID-19 crisis. The MADB yearly grants agricultural loans to the small-scale farmers. The paddy farmers can take out loans of K150,000 per acre, while the growers of other crops including sugarcane, can get K100,000 per acre. They have to put the original Farmland Permit Form (7) up for collateral to secure the loan under the personal guarantee system. 

Source: The Global New Light of Myanmar

The total trade value at 18 border trade camps plummeted by US$848 million in this financial year, according to the Ministry of Commerce.
From 1 October 2020 to 15 January, the total trade value amounted to $2.7 billion, a decrease of $848 million compared with that of the same period last year. The total border trade value as of 15 January this FY includes $1.78 billion in export and $911 million in import.

Compared with that of last FY, the export earnings dropped by $518 million while the import value fell by $330 million. This time last year saw the border trade valued at $3.55 billion. Myanmar’s major export items are farm, animal, marine, forest, mining, CMP and other products. Myanmar mainly imports capital goods, industrial raw materials, personal goods and CMP raw materials. Myanmar has opened 18 border trade camps and conducts border trade with China through Muse, Lwejel, Kampaiti, Chinshwehaw and Kengtung borders.

The country carries out border trade with Thailand through Tachilek, Myawady, Kawthaung, Myeik, Hteekhee, Mawtaung and Maese borders. The cross-border trade camps between Myanmar and Bangladesh are Sittway and Maungtaw. In contrast, the country trades directly with India via Tamu and Reed borders. Among all the border crossings, the Muse border sees an enormous volume and value of border trade with an estimated value of more than $1.31 billion this FY followed by Hteekhee with $368 million and Myawady with $304 million. 

Source: The Global New Light of Myanmar

Department of Animal and Plant Quarantine of the General Administration of Customs of China-GACC informed the Embassy of the Republic of the Union of Myanmar in Beijing that China has allowed import of Myanmar fishery products only upon production of COVID-free certificate. The GACC mentioned in a statement that to ensure the safety and effective prevention of the spreading of the COVID-19 on the goods plays an important role, to set up an effective safety system by the companies registered to export edible aquatic animals to China following these guidelines, to implement the protection system, to give specific guidelines to check COVID-19 in edible aquatic animals exported to China. Besides, the companies registered to export edible aquatic animals to China need to halt the import process immediately and need to inform China when they found the suspected COVID-19 patients in their companies or if there is a risk of COVID-19 infection in the export products.

The suspended companies should resume the export process to China after confirming that they are safe. Also, China urges companies to work together for security and convenience regarding the export of edible aquatic animals to China. Therefore, the COVID-19 free certificates essential to fishery exports to China must be issued at as soon as possible because it can cause disturbance on trading, said General Secretary U Win Kyaing of the Myanmar Fisheries Federation (MFF). Since last October, China authorities have given a permit for fishery exports only upon production of COVID-19 free certificates on products. Consequently, fishery exports, including frozen fish, prawn, eel and crabs, cannot be exported to China via the land border. Although China earlier allowed Myanmar to export fishery products without having any certificates through regular trade, China did not allow importing without the COVID-free certificates.

However, MFF is not clear about which department is responsible for issuing COVID-19 clearance certificate for fishery products. It is a new order for the COVID-free certificates on fishery products. They are not clear as to who are legal authorities. Also, there are no guidelines to check the COVID-19 on the export products. The Federation has already submitted a report to the Ministry of Agriculture, Livestock and Irrigation through the Fisheries Department to screen fishery products and receive the COVID-19-free certificates. On 21 January, a coordination meeting was held in the meeting hall of the Ministry of Agriculture, Livestock and Irrigation in Nay Pyi Taw to respond to the impact of COVID-19 on the fisheries sector. At the meeting, Union Minister for Agriculture, Livestock and Irrigation Dr Aung Thu said that coordination would be made between the governments to engage the fishery products to the potential foreign markets.

The ministry will also call for coordination with the relevant departments, including the Myanmar fisheries federation, to issue the COVID-free certificates on Myanmar fishery products. China is the second-largest buyer of Myanmar’s fishery products. During the previous financial year 2019-2020, Myanmar shipped over US$850 million worth fishery products to external markets and among them, $254 million worth exports flowed into China. The Federation expects to reach fishery export target of $1 billion in the current FY. Myanmar has earned $278.378 million from the export of fishery products over three and a half months of this financial year between 1 October 2020 and 15 January 2021. The same period of the last FY saw $301.958 million. So, this year’s amount plunged into $23.580 million, according to official data of the Ministry of Commerce. Myanmar’s marine products mainly go to more than 45 countries, with Thailand being the largest exporter followed by China.

Source: The Global New Light of Myanmar