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Myanmar rice exports to China strong as Yuan gains

With the Chinese Yuan appreciating, Myanmar’s exports of rice
and broken rice are so strong that the exporters are receiving
handsome benefits, said U Min Thein, vice-chair of Muse Rice Wholesale Centre. At present, the Chinese Yuan is gaining, and a Yuan is over K200. As a result of this, the exporters are financially doing well. The stronger the Chinese Yuan, the better the exporters earn. There is good potential for rice and broken rice among the goods exported to China. The rice prices stand at 129 Yuan per bag for broken rice, 133 Yuan for Ngasein rice variety, 135 Yuan for Thuka variety and 142 Yuan for Htonepu variety, Muse rice
depot stated. Last 26 February, China gave green lights to some Myanmar export companies to deliver the rice to China through the Muse land border.

It is also said that the authorized companies for rice export to China have increased this year as against last year. Myanmar traders have
started shipping rice to China under new permits through the Muse border.
Nevertheless, the private banks’ closure disrupted the transaction problem in the rice trade, he elaborated. Myanmar shipped more than 720,000 tonnes of rice and broken rice to foreign countries between 1 October and 15 January of the current financial year, earning over US$275 million, Myanmar Rice Federation stated. The country sent over 308,000 tons to neighbouring countries via border trade, and maritime trade saw over 418,000 tonnes. Myanmar has exported rice to 31 foreign markets so far. China is the main buyer of Myanmar rice with over 340,000 tonnes, followed by the Philippines (36,000 tonnes) and Poland (14,000 tonnes).

Meanwhile, Myanmar sent broken rice mostly to China (over 210,000 tonnes), followed by Belgium (46,000 tonnes) and Thailand (over 6,300 tonnes). Broken rice was placed in 16 foreign markets. Myanmar set the rice export target at only 2 million tonnes in the current FY as summer paddy growing acreage drops, said the Chair of Myanmar Rice Federation (MRF). Weather changes affected irrigation water resource availability in agriculture. Consequently, the export figures showed a drop of 300,000 tonnes of rice in exports this year. Myanmar generated over $800 million from rice exports in the previous FY2019-2020 ended 30 September, with an estimated volume of over 2.5 million tonnes.

Source: The Global New Light of Myanmar

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Export of cattle, animal products dives by $35.84 mln this FY

MYANMAR’S export of animal products between 1 October and 19 February in the current financial year 2020-2021 touched a low of US$15.857 million, a sharp drop of $35.8 million compared with the corresponding period of the 2019-2020 FY since China suspended livestock trading. In the previous FY, animal products export has registered at $51.69 million. The private sector solely drives animal products export. About 10,000 heads of cattle, owned by 150 companies, are now stranded in the Muse border as China stopped purchasing cattle. The labour wages and feedstuff cost burden
them. It costs K400,000-600,000 to take care of 100 heads of cattle every day.

Some traders brought the cattle from Muse back to their home owing to the burden of high feedstuff cost and labour wages. Some intentionally stated that they would return to the originally-designated place but conduct illegal trade in border areas. For legitimate trade, China permits live cattle import
only after ensuring the cattle is free from 20 diseases, including Foot and Mouth Disease, along with vaccination certificates, health certificates, and farming registration certificates. Therefore, the officials concerned from the two countries are negotiating the matter.

Earlier, 1,500-2,000 heads of cattle were daily traded through the Muse border. Chinese New Year holidays, preventive measures for the COVID-19, and other reasons contribute to the cattle trade suspension. Additionally, Myanmar’s live cattle export heavily relies on the China market due to a
reasonable price, although Myanmar has other external markets such as Laos, Thailand, Malaysia, and Bangladesh. The Ministry of Commerce grants a permit to each company for 100 cattle export, and the permit is valid for three months. The companies can be taken legal actions if they
do not sell the cattle during the three-month period.

Next, the officials from the Livestock Breeding and Veterinary Department (LBVD) under the Ministry of Agriculture, Livestock and Irrigation signed with China’s counterparts regarding cattle surveillance and health projects for live cattle export on 18 January 2021, intending to enhance livestock trading and ensure regular border trade through legitimate channel. The LBVD has been implementing the establishment of a foot-and-mouth-disease free zone, control zone and vaccination areas since 14 July 2020 to export live cattle to China through the land border.

Live cattle export was allowed in late 2017 to eradicate illegal exports, creating more opportunities for breeders and promoting their interests.
The country exports cattle above five years old, including
vaccination certificates, health certificates, and farming registration certificates. According to the 2018 cattle census, there are 11.5 million heads of cattle in the country. The authorities have issued cattle export licences to more than 300 companies in the Magway region. There are around 5,000 companies holding cattle export licences across the country. Myanmar can yearly export around 500,000 heads of cattle beyond domestic consumption, the association stated.

Source: The Global New Light of Myanmar


Domestic gold prices fall by over K100,000 in half month

ACCORDING to the domestic gold market, the gold market prices in Myanmar dropped by over K100,000 in half a month. Although pure gold reached the highest price of over K1,4000,000 per tical on 17 February, the price dropped to K1,302,000 per tical after 15 days on 4 March. Recent days saw the gold price unstable in the domestic market. That is the reason why the Yangon gold market halted on 5 February. But, the market reopened on 10 February. Consequently, Yangon Region Gold Entrepreneurs Association called an emergency meeting on 4 February before the gold market started. Then, the association made four decisions.

They are to use the cash down payment system and encourage people who are trading with fear and trading with restraint. Similarly, the international gold price is also on the decline. The gold price was only around US$1,788 per ounce on 17 February but had dropped to $1,713 on 4 March 2021, a decline of $75 in 15 days. In January 2021, the domestic gold fetched the highest price of K1,336,000 per tical on 6 January. It reached the lowest price of K1,316,000 per tical on 28 January. The lowest level of K1,340,000 came from 2 February, and the highest level of K1,410,000 (3 February), the gold traders said.

The local gold price reached the lowest K1,310,500 (2 September) and the highest level of K1,314,000 (1 September). In October, the rate ranged between K1,307,800 (30 October) and K1,316,500 (21 October). The rate fluctuated between the highest of K1,312,000 (16 November) and the lowest of K1,278,000 (28 November). In December, the pure yellow metal priced moved in the range of Ks 1,275,000 (1 December) and K1,333,000 (28 December). With the global gold prices on the uptick, the domestic price hit fresh highs in 2019, reaching K1,000,000 per tical between 17 January and 21 February, crossing K1,100,000 (22 June to 5 August), climbing to K1,200,000 (7 August-4 September), and then reaching a fresh peak of K1,300,000 on 5 September, according to the gold traders.

Source: The Global New Light of Myanmar