Monthly Archives: April 2021

Myanmar’s rice export to China through the Muse land border has stalled amidst the coronavirus concerns, said U Min Thein, vice-chair of Muse Rice Wholesale Centre. The abrupt halt in border trade came after one Myanmar citizen tested positive for COVID- 19 was found in Kyalgaung precious stone market on 29 March. That prompted China to restrict border access at the Mang Wein checkpoint, a major border crossing between Muse and Kyalgaung areas.

After the closure of the Mang Wein checkpoint, exports of Myanmar’s kitchen crops such as onion and chilli, various pulses and beans, rice and broken rice, and the fishery products were totally suspended. Consequently, rice and broken rice inflow to Muse border was not seen either. During the first wave of coronavirus pandemic, the driver substitution system helped lessen the impact on border trade. Even the truck cannot enter the border posts, which makes 100 per cent market collapse in Muse border.

Therefore the traders are urgently calling for the reopening of the Man Wein post at the soonest. Myanmar Rice Federation stated that Myanmar had shipped US$275 million worth of more than 720,000 tonnes of rice and broken rice to foreign countries in Q1 (1 October and 15 January) of the current financial year 2020-2021. The border trade handled over 308,000 tonnes of rice, while maritime trade covered over 418,000 tonnes in Q1. 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

Yangon Region Gold Entrepreneurs Association (YGEA) has called for the members to make the gold transaction with only immediate cash payment. That move will regulate unsustainable rally in the gold market and urge the members to run a cash only for gold transaction in the same regions and states in order to avoid the verbal transactions over calls, said U Myo Myint, chair of YGEA. For instance, a purchase via Mawlamyine, Mandalay, and Pathein over a phone call is unaccepted. Only the transaction with immediate payment in Yangon Region is allowed to avoid unsustainable and unsafe rally.

Last 24 April, YGEA held the meeting, highlighting the stability of the gold market, running cash only for the gold transaction and make a analysis on market rumours. The price of domestic yellow metal reached K1,453,000 per tical on 26 April, tracking the positive international trends. The gold price was ranged between K1,316,000 per tical (28 January) in the minimum and K1,336,000 per tical (6 January) in the maximum. It reached an all-time high of K1,410,000 per tical on 3 February and hit the minimum of K1,340,000 per tical on 2 February. The rate fluctuated between the highest of K1,391,000 (25 March) and the lowest of K1,302,000 (4 March), the gold traders said.

According to gold traders, the local gold reached the lowest level of 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 K1,317,000 (9 November) and the lowest of K1,270,000 (30 November). In December, the pure yellow metal priced moved in the range of 1,280,000 (1 December) and 1,332,000 (28 December). With global gold prices on the uptick, the domestic price hit fresh highs last year to reach K1,000,000 per tical between 17 January and 21 February. It crossed K1,100,000 (22 June to 5 August), climbing to over 1,200,000 (7 August-4 September), and then reaching a record high of K1,300,000 on 5 September 2019.

Source: The Global New Light of Myanmar

THE pigeon pea (red gram) price continues rising from early April, and it surged to above K94,5000 per metric tonne in the fourth week of April. The pigeon pea price was on the rise in March-end 2021 amid the low yield and the dollar gain. The pigeon peas market saw a slight upward trend in price along with the appreciation of US dollar against Kyat, according to the domestic market. The gram fetched up only K837,500 per tonne in early February. The price in April-end showed a remarkable increase of K 100,000 per tonne as against February’s rate. The traders set the selling price at K 88,000-90,000 per three-basket bag in the Mandalay market. The majority of them accept only immediate cash payment.

The pigeon pea market remains bullish even after the Thingyan holidays (13-19 April), a trader from the Mandalay market shared his opinion. Myanmar’s pigeon peas are primarily shipped to India and exported to Singapore, the US, Canada, Pakistan, the UK, and Malaysia. But, the export volume to other countries rather than to India is extremely small. More than 249,245 tonnes of various pulses and beans were exported to foreign markets between 1 October and 4 December of the current financial year2020-2021, with an estimated value of US$217 million. Of them, the pigeon pea export account- ed for 83,758 tonnes, generating an income of $57.94 million, the Commerce Ministry’s data indicated. The domestic bean market is positively related to the law of supply and demand.

Since 2017, India has been setting import quota on beans, including black grams and pigeon peas. Therefore, the growers face difficulties to export their beans to the Indian market. India’s move to restrict importation of pulses in August 2017 severely affected growers in Myanmar. The price of pulses also drastically plummeted. In the 2017-2018 FY, over a million tons of black grams, pigeon peas, and green grams were shipped to foreign countries. Nevertheless, the earnings have registered at just $713 million owing to the price drop. Myanmar shipped over 1.6 million tonnes of different varieties of pulses, especially black grams, with an estimated worth of US$1 billion, to other counties in the FY2018-2019. During last FY2019-2020 ended 30 September, the country delivered 1.6 million tonnes to the external market, generating an export value of $1.195 billion.

Source: The Global New Light of Myanmar

MUSE border trade virtually hangs down because of coronavirus outbreak in the border market, said U Min Thein, the vice-chairman of Muse Rice Wholesale Centre. On 29 March, a Myanmar national was found to be COVID-19 positive in Kyauk Wine market in Kyaigaung. The next day, China restricted the border crossing at the Mang Wein checkpoint, which is one of major border crossings between Muse and Kyaigaung. Consequently, the main export stuffs namely rice and broken rice, pulses, aquatic products, onion and chilli to China through Mang Wein checkpoint were 100 per cent suspended.

Although the export items are allowed through other checkpoints Wan Ding and Kyin San Kyawt, the inspection over the products has been tightened starting from 20 April because of pandemic. Currently, the export of such products as rice, broken rice, green gram, aquatic products, onion and chilli are halted 100 per cent at Muse border checkpoint. The watermelon and muskmelon are still exported via Kyin San Kyawt checkpoint. However the trade of watermelon and muskmelon are down 90 per cent than previously because the health checks are more stringent than earlier at Kyin San Kyawt checkpoint.

According to the statement of the People’s Republic of China Yunnan COVID-19 prevention team prevention on 19 April said that any of 30 sample items from an export truck to China were needed to undergo COVID-19 test starting from 20 April. The COVID-19 test on each sample item will cost 60 Yuans. The costs will be borne by the owner of the cargos. The export products will only be allowed to discharge the day after the COVID-19 test proves negative. Besides, the traders and cargo handlers will have to undergo COVID-19 tests daily and the cost is 60 Yuans per person. Likewise, people are allowed to enter the workplace only after having the medical record, checking the body temperature and wearing the masks and gloves. The workers and staff have to stay in the restricted areas from 9 pm to 8 am. Those who are disobedient of the rules will be deported. As a result, some export cargos to China through Muse border trade seem to be suspended 90 per cent while some export items are suspended 100 per cent.

Source: The Global New Light of Myanmar

MYANMAR’S Trade Department under the Ministry of Commerce has notified that four food commodities are temporarily restricted for import via the Myanmar-Thailand border starting from 1 May, Myawady Trade Zone reported. The restricted items include various beverages, coffee mix and tea mix, instant coffee, and condensed milk and evaporated milk. However, they can be imported through maritime trade. Traders stressed that it would add more extra transport costs. Moreover, it causes price hikes in the retail market at present. The value of Myanmar’s bilateral trade with the neighbouring country Thailand through the land border has registered a decrease of US$370.79 million between 1 October and 2 April of the current financial year 2020- 2021 as against a year-ago period the statistics issued by the Ministry of Commerce indicated. The ministry reported that exports surpassed imports in trade with Thailand this year, with exports reaching over $1.3 billion and imports valued at over $589.7 million, totaling $1.9 billion.

Myawady border performed the best among seven border points between Myanmar and Thailand, having a trade value of $729.46 million. During the corresponding period of the past FY2019-2020, Myanmar-Thailand border trade touched a high of $2.28 billion. During the last FY, Myanmar has increasingly exported corns to Thailand through the Myawady border. Myanmar’s corn exports to Thailand significantly soared to over 1.2 million tonnes through border posts between Myanmar and Thailand during October and May period in the FY2019-2020, said an official of the Ministry of Commerce. At present, Myanmar exports the corn to Thailand through Myawady and Tachilek land border. About 5,000-6,000 tonnes of corn are daily sent to Thailand through Myawady, while Tachilek border does not regularly export. Myanmar is allowed for corn export between 1 February and 31 August with Form-D, under zero tariff.

Thailand imposed 73 per cent of tax on corn import to protect the rights of their growers if the corns are imported during the corn season of Thailand, according to the notification of the World Trade Organization regarding corn import of Thailand, said a corn exporter. Myanmar intends to reach an export target of one million tonnes of corn to Thailand this year, Myanmar Corn Industrial Association stated. Additionally, exports of natural gas from the Taninthayi Region has contributed to the enormous increase in border trade with Thailand in the previous years. This year, gas exports via the Hteekhee border drastically fell. There are seven border posts between Myanmar and Thailand, Tachilek, Myawady, Kawthoung, Htikhee, Myeik, Mawtaung and Meisei. Except for Tachilek and Myawady, the remaining border posts showed a decrease in the trade this FY. Myanmar primarily exports natural gas, fishery products, coal, tin concentrate (SN 71.58 per cent), coconut (fresh and dry), beans, and bamboo shoots to Thailand. It imports capital goods such as machinery, raw industrial goods such as cement and fertilizers, consumer goods such as cosmetics and food products from the neighbouring.

Source: The Global New Light of Myanmar

According to the Chin Shwe Haw Chamber of Commerce, the closure of the Chin-Shwe-Haw border checkpoint, which is a cross-border trade between Burma and China, has halted the export of Myanmar agricultural products and fertilizers and metal products imported from China. The gate was closed on April 16, citing the Chinese side as saying that the virus was found on April 16. The Chin Shwe Haw border gate will be reopened on May 15. It will be closed for a month. They also say that it will shut down again if the virus is found again, depending on the virus. There are more than 400 cars here on the side of Myanmar, and more than 100 cars have entered the Chinese side. This is the export of goods from Myanmar. On the Chinese side, they have more than 300 imported goods coming to Myanmar. 

On the morning of 22nd April,2020, the last 147 cars have been unloaded. About 420 cars on the next road coordinate with traders. The gate is closed for a month, so will the goods be dropped off at Chin Shwe Hall or they negotiate with the traders to return the goods to Muse and Lwe Kyi, some put it down. However, few cars were ordered to return to Muse and Lwa Kyi. Mandalay collapsed again. People are in a lot of trouble. In addition, a trader from Chin Shwe Haw said, it is uncertain whether it will be reopened. So that all people have to endure it and prepare mental strength, manpower and financially.

Pulses from Burma at Chin Shwe Haw border gate sesame, corn dried chillies; agricultural products such as betel nut and sugarcane are being exported. Iron ring Soup powder Etc. are being imported. The items banned by China’s COVID-19 defense force include commercial vehicles and agricultural products, raw vegetables and small local pumpkins, and sugarcane. The Yunnan provincial government has closed the two border checkpoints in Muse due to the COVID-19 disease, and the Yunnan COVID-19 National Guard issued a strict entry and exit rules in a statement issued on April 19. Traders are also worried that the border with China will soon be closed again due to the COVID-19 virus.

Source: The Global New Light of Myanmar