Myanmar bean growers see strong market on G to G pact

The bilateral Memorandum of Understanding (MoU) between Myanmar and India ensured a strong market next five years, along with other relaxations on import quota, the Myanmar Trade Promotion Organization under the Ministry of Commerce stated. Myanmar can export 250,000 tonnes of black gram (urad) and 100,000 tonnes of pigeon peas under the G to G (government to government) pact during the April-March period between the 2021-2022 financial year and the 2025-2026 FY. The bilateral negotiations for the G to G pact started in 2016 and the two countries signed an MoU on 18 June 2021. Additionally, this G to G pact will not relate to India’s yearly quota on bean import. Therefore, Myanmar exporters can ship them under this quota as well.

In May 2021, India’s Ministry of Agriculture and Farmers Welfare approved not only black gram but also other pulses being imported from Myanmar that have the bill of landing up to October-end 2021, with relaxations of conditions regarding clearance consignment. India experienced some damages to their farms due to erratic weather, resulting in a yield drop. The demand in India has risen amid the impacts of the global pandemic and the low supply. Consequently, India’s ministry gave green light to the relaxations of conditions for imports of pulses from Myanmar. The number of bean acreage is expected to increase in the coming season following the relaxations. Following the policy change of India’s pulses import, the prices of black gram and pigeon peas have risen in the domestic market. The grams are in high demand at present, according to the traders from Mandalay commodity depot. Strong local demand boosted the price of black gram (urad) to K1,105,000-1,235,000 per tonne on 25 June. Black gram fetched only K880,000 per tonne in April-end.

Similarly, the high demand pushed up the price of pigeon peas up to K1,092,500 per tonne on 25 June, Bayintnaung Wholesale Market data showed. India set an import quota on beans including black gram and pigeon peas starting from 2017. Myanmar earlier had to export black bean and pigeon peas under the quota system and limit period. The local growers were battered by quota and price manipulation in the previous years. Myanmar’s agriculture sector is the backbone of the country’s economy and it contributes to over 30 per cent of Gross Domestic Products. The country primarily cultivates paddy, corn, cotton, sugarcane, various pulses and beans. Its second-largest production is pulses and beans, counting for 33 per cent of agricultural products and covering 20 per cent of growing acres. Among them, black gram, pigeon peas and green grams constitute 72 per cent of bean acreage. Other beans including peanut, chickpea, soybean, black-eyed beans, butter bean and rice bean are also grown in the country.

Source: The Global New Light of Myanmar


CBM sells $6 mln for second time this month

The Central Bank of Myanmar (CBM) has sold US$6 million for the second time this month on June 24. About $6 million was sold at an auction exchange rate of K1,590 per US dollar. On 7 June, the CBM sold about $3 million for the first time this month at an auction market rate. The bank has already sold a total of $9 million for this month. In May, the CBM reportedly sold $24 million at an auction rate. CBM is selling the US dollar at an auction rate intending to keep the exchange rate stable.

The dollar exchange rate against Myanmar Kyat stood at around K1,330 per dollar at the end-January. Then, the rate jumped to K1,730 per dollar on 12 May. With the rising US dollar exchange rate, the CBM has been constantly selling the US dollar at an auction exchange rate since 12 May. Consequently, the exchange rate dips to around K1,600 in the local foreign exchange market. The local foreign exchange market’s data in 2021, the highest and the lowest exchange rate is currently fixed around K1,327- 1,345 in January, K1,335-1,465 in February, K1,420-1,550 in March, K1,550-1,610 in April and K1,585- 1,730 in May.

In 2020, the exchange rate moved in the range of K1,465- 1,493 in January, K1,436-1,465 in February, K1,320-1,445 in March, K1,395-1,440 in April, K1,406-1,426 in May, K1,385-1,412 in June, K1,367-1,410 in July, K1,335-1,390 in August, K1,310- 1,355 in September, K1,282-1,315 in October, K1,303-1,330 in November and K1,324-1,403 in December. Last year, the rates are pegged at K1,508-1,517 in July, K1,510-1,526 in August, K1,527- 1,565 in September, K1,528-1,537 in October, K1,510-1,524 in November and K1,485-1,513 in December. On 20 September 2018, the dollar exchange rate hit an all-time high of K1,650 in the local currency market.

Source: The Global New Light of Myanmar