Monthly Archives: June 2021

In the six months from October to March of the 2020-2021 fiscal year, China topped the list of top 10 exporters from Myanmar with $ 2,941.56 million, followed by Thailand with US $ 1,551.23 million, according to the Ministry of Commerce. $ 498.39 million to Japan; $ 393.57 million to India; $ 349.06 million to the United States; $ 203.09 million to Spain; $ 202.93 million to Germany; $ 185.02 million to the UK; $ 167.24 million to South Korea; $ 152.96 million was exported to the Netherlands. From October 1 to the end of September of the 2019-2020 fiscal year, Myanmar-China trade amounted to more than $ 12.126 billion, with China importing more than $ 6.724 billion, according to the Ministry of Commerce.

From October to September of the 2019-2020 fiscal year, Myanmar-China trade amounted to $ 12126.278 million, with exports from Myanmar amounting to $ 5,401.943 million and imports from China worth $ 6,724.335 million. In the 2019-2020 fiscal year, Myanmar-India trade amounted to more than $ 1.3 billion, down more than $ 130 million from the same period last year. From October 1 to the end of September of the 2019-2020 fiscal year, Myanmar exported $ 616.464 million worth of exports to India, while India imported $ 696.937 million worth of goods, generating a total trade volume of $ 1,313.401 million.

In the first six months of the 2019-2020 fiscal year, Myanmar’s major trading partners were more than 33 percent with China; Thailand and 13.6 percent; Singapore 9.7%; Japan and 5.3 percent; India and 4%; Pyidaungsu Hluttaw, 34.3% trade with other countries Public Accounts Joint Committee; according to the Findings and Opinion Report No.(8/2020) regarding the first six months report of the National Plan for the fiscal year 2019-2020. From October 1 to the end of September of the 2019-2020 fiscal year, Myanmar’s exports were worth $ 3,095.988 million. Thailand imported $ 5,109.479 million worth of goods worth $ 2013.486 billion. The main priority areas of the National Export Strategy 2020-2025 are agro-based food production, textile and clothing sector, industry and electronics, fisheries sector, forest products, digital products and services, logistics services, quality management sector, trade Information services, innovation and entrepreneurship, according to the Ministry of Commerce.

Source: Daily Eleven

The Indian government has signed an MoU to import 250,000 tonnes of black gram beans and 100,000 tonnes of pigeon peas from Myanmar through the annual private trade from fiscal year 2021-2022 to fiscal year 2025-2026, according to the Ministry of Commerce. The two sides have been negotiating since 2016 to sign the G to G Memorandum of Understanding (Draft) on black gram beans and pigeon peas trade cooperation between Myanmar and India. At present, the two governments signed a Memorandum of Understanding (MoU) on cooperation between Myanmar and India on June 18, 2021 under the G to G program to promote pulses and pulses trade between Myanmar and India, depending on the volume and consumption needs of Myanmar.

According to the MoU, the Indian government will import 250,000 tonnes of black gram beans and 100,000 tonnes of pigeon peas from Myanmar annually through private trade between the next five years, 2021-2022 to 2025-2026 (April to March), according to the Ministry of Commerce. The G to G MoU will not affect the international bean quota issued annually by the Government of India, and Myanmar bean exporters will also be able to participate in the international guota. In the 2019-2020 fiscal year, more than 1.6 million tonnes of pulses were exported, earning nearly $ 1.2 billion, an increase of nearly $ 190 million, despite a decrease of more than 23,000 tonnes from the previous year.

This fiscal year, Myanmar earned US $ 1,195.483 million (nearly 1.2 billion) from the export of 16.061 lakh tonnes (over 1.6 million tonnes) of pulses. It was 23,000 tonnes less than the previous fiscal year, but earned $ 169.232 million more. Last fiscal year, it exported 1.63 million tonnes of pulses, earning just $ 1.026 billion. Among domestic produced legumes, the black gram beans, pigeon peas and green peas are three main types of import. Among them, black gram beans and green peas are mainly exported to India, while green peas are mainly exported to China and some European countries. Myanmar has over 11 million acres of pulses grown annually, accounting for more than 35% of the total production of pulses and pulses. In Myanmar, a total of 11.45 million acres of pulses are cultivated annually for 18 varieties of pulses. Standing 25 percent; Pulses are grown at 15% and lentils at 8%.

Source: Daily Eleven

The domestic palm oil has slightly declined, tracking the import price retreat, said U San Lin, chair of Myanmar Edible Oil Dealers’ Association. The palm oil fell to US$995 per tonne in the international market. Consequently, it ranges K2,800-2,900 per viss (a viss equals 1.6 kg) in the domestic wholesale market. The oil palm plants produce fruits in abundance this time. The price is likely to extend its drop up to October if any trade barrier will not occur, U San Lin said. Normally, oil palm plants are plentiful in Malaysia this time. They produce the fruits from June to October.

In early January 2021, production slump in importing countries Malaysia and Indonesia, caused by erratic weather conditions and the COVID-19 impacts, high imports by certain countries under tax reduction, a tax hike on exports in producing countries and the short storage of palm oil in those countries contributed to the rise in edible oil price. The palm oil price stood at $1,055-1,200 per tonne in the foreign market.

Last 7 January, Myanmar Edible Oil Dealers’ Association issued a notice to import the palm oil from foreign countries sustainably for self-sufficiency, distribute the edible oil at a fair price to the consumers and ensure that there will be no edible oil shortage in regions and state when there is a rise in imported oil price. The domestic consumption of edible oil is estimated at 1 million tonnes per year. The local cooking oil production is just about 400,000 tonnes. To meet the self-sufficiency in the domestic market, about 700,000 tonnes of cooking oil are yearly imported.

Source: The Global New Light of Myanmar

The price of rice in the domestic market continues rising regardless of the inactive market, said U Than Oo, secretary of Bayintnaung Rice Wholesale Centre. Bayintnaung wholesale market showed a significant decline in the volume of trading activity. The retail market is going regularly, U Than Oo stated.

Despite the inactive market, the prices of rice surged by K2,000 per bag. At present, the rice variety which is highly consumed in the domestic market fetches K32,000-35,000 per bag. Normally, the rice fetches a lower rate before Thingyan Festival (Myanmar New Year Festival in April). Shortly thereafter, the price usually goes up, he continued.

The price is unlikely to fall this month, Bayintnaung Rice Wholesale Centre reported. Only a small number of rice export companies are buying the rice at present. Those traders are planning to export them to Bangladesh only. About 80,000 bags of rice and broken rice were earlier traded per day at the Bayintnaung Rice Wholesale Centre, whereas the trade volume plummeted to about 30,000 bags at present.

Source: The Global New Light of Myanmar

Myanmar’s trade gap has significantly narrowed to US$166.7 million between 1 October and 4 June of the current financial year 2020-2021 from just $1.24 billion registered in the corresponding period of the 2019-2020FY, according to data provided by the Ministry of Commerce. The trade deficit is attributed to the drastic drop in imports this year. Between 1 October and 4 June in the current FY, Myanmar’s external trade drastically plunged to $16.7 billion, up from $20.46 billion recorded in the year-ago period. While exports were estimated at $10.14 billion, imports were valued relatively high at $10.3 billion this FY.

Compared to the FY 2019-2020, exports showed a drop of over $2.2 billion, while imports fell by $3.39 billion. Myanmar witnessed a slump in exports and imports triggered by the coronavirus impacts. Both maritime and border trade routes dropped amid the coronavirus impacts and political changes. The neighbouring countries tightened the border security and restricted the trading in certain border areas. For maritime trade, disruption in logistic sector, spikes in container rates and banking restriction dragged down the trade. Myanmar exports agricultural products, animal products, minerals, forest products, and finished industrial goods, while it imports capital goods, raw industrial materials, and consumer goods.

The country’s export sector relies much on the agricultural and manufacturing sectors. The Ministry of Commerce is trying to reduce the trade deficit by screening luxury import items and boosting exports. The country mainly imports essential goods, construction materials, capital goods, hygienic materials and supporting products for export promotion and the import substitution. Myanmar’s trade deficit was pegged at $1.3 billion in the 2019-2020 FY, $1.14 billion in the 2018-2019 FY, $1.3 billion in the previous mini-budget period (April-September, 2018), $3.9 billion in the 2017-2018 FY, $5.3 billion in the 2016-2017 FY, and $5.4 billion in the 2015-2016 FY, according to the statistics released by the Central Statistical Organization.

Source: The Global New Light of Myanmar

Trade conducted by Individual Trading Card (ITC) holders reached over K18.3 billion through the land border in the past eight months of the current financial year 2020-2021, according to data released by the Ministry of Commerce. The Trade Department issued 149 cards in Oct-May period this FY. Imports exceeded over K15 billion, whereas exports were valued at just K3.29 billion. The Myawady border trade zone recorded the highest trade value at K11 billion, according to the Commerce Ministry. Nevertheless, the figure only reflected imports as individual trading card holders did not export goods through the Myawady gate. The value of trade engaged by individual trade card holders stood at K144 million at Tamu post, K116 million at Tachilek, K1.6 billion at Kawthoung, K5.3 billion at Mawtaung and K31 million at Kengtung, as per data from the Commerce Ministry.

At present, individual traders are no longer permitted to import the soap, detergent powder and toothpaste through border trade route with the Individual Trading Card (IRC) starting from 4 June 2020, with a view to safeguarding the interests of local SMEs and helping them survive in a highly competitive market. Nevertheless, the restriction does not impact on the regular traders with import/export licence. Additionally, Myanmar’s Trade Department under the Ministry of Commerce notified that four food commodities are to be temporarily restricted for import via 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. Individual trades topped K737 million in the period from 21 November 2012 to 31 March 2013; exceeded K6.6 billion in the FY 2013-2014; reached K9.37 billion in the FY 2014-2015; stood at over K6.4 billion in the FY 2015-2016; rose above K18.5 billion in the FY 2016-2017; touched K45.9 billion in the FY 2017-2018; K22.5 billion during the 2018 mini-budget period (April-September); K59 billion in the FY 2018-2019 and drastically plunged to K43.32 billion in the FY 2019-2020.

The individual traders who cannot establish their own company can carry out trading with the ITC in the border area. However, trading volume is limited. The card validity is set only one year and the card holders need to renew the cards at the respective border gates one month before expiry date. Trading with the use of ITC is based on local currency. Hundreds of exports and imports items have been allowed for individual trading via the border gates. The traders can seek the ITC at the offices of Tamu, Muse, Myawady, Tachilek, Lwejel, Sittway, Maungtaw, Chinshwehaw, Kanpiketee, Myeik, Kawthoung, Reed, Thantlang, Mawtaung, Htikhee, Kenglek, Meisei and export/import offices in Mandalay, Kengtung and Myitkyina. Businessmen can trade goods worth K3 million per day using ITCs, and the Trade Department has permitted trade of up to K15 million per day over five days.

Source: The Global New Light of Myanmar

The trade value through Muse land border touched a low of US$2.7 billion between 1 October and 4 June in the current financial year2020-2021, showing a rise of $717 million as against a-year ago period, the Ministry of Commerce’s data showed. The figures jumped from $3.5 billion recorded in the corresponding period of last FY2019-2020. As of 4 June 2021, Myanmar’s exports to China through Muse land border were valued $1.75 billion, while imports are worth over $1 billion, the Ministry of Commerce’s data indicated. The cross-border trade via Muse ground to a halt after China tightened the border security and made policy changes in light of the COVID-19.

China has temporarily shut down Man Wein checkpoint, which is a major border crossing between Muse and Kyalgaung areas, from early April. Consequently, there is no trade flowing in and out of the country via Muse-Man Wein border. Furthermore, trade through Kyinsankyawt border, a major checkpoint for fruit exports, is down by 80 per cent, said traders. Suspension in border trade caused a negative impact on perishable fruits. The policy changes in China’s border exacerbated Myanmar’s exports amid the COVID-19 resurgences, said a Muse trader. Prior to the closure of Man Wein checkpoint, Myanmar daily sent about 2,000 tonnes of rice and 40,000 broken rice bags to China.

At present, Myanmar’s rice export to China through Muse land border has stalled amidst the coronavirus concerns. Moreover, the exports of seasonal fruits such as watermelon, muskmelon and mango are declining. This Man Wein post plays a pivotal role in trading between Myanmar and China. Myanmar exports rice, broken rice, onion, chili pepper, pulses and beans, food commodities and fishery products to China, whereas electrical appliance, equipment, medical device, household goods, construction materials and food products are imported in the country via Man Wein. Myanmar intended to reach trade target of over $5 billion through Muse for the last FY 2019-2020, However, only $4.86 billion worth goods were traded. Border trade values at Muse stood at $5.4 billion in the 2016-2017FY, $5.8 billion in the 2017-2018FY and $4.9 billion in the 2018-2019FY respectively, as per data of the Commerce’s Ministry.

Source: The Global New Light of Myanmar