Raw materials import by CMP businesses jumps to $824 mln as of 8 July

Imports of raw materials by CMP (cut-make-pack) businesses rocketed to US$824.379 million between 1 April and 8 July in the current financial year 2022-2023, which reflects a sharp increase of $456 million compared with the year-ago period, according to the Ministry of Commerce.

The figures rose from $368.27 million registered during the-year ago period, the Commerce Ministry’s data indicated. Although some labour-intensive enterprises faced financial hardship amid the COVID-19 negative impacts and the political changes, the industry is now returning to normal after the COVID-19 vaccination programme for workers as per the IHS Markit’s September report.

In a bid to boost factory productivity with a healthy workforce in the garment industry, Mobile Medical Check to garment workers took place in Yangon and Nay Pyi Taw, supported by UNICEF Myanmar. Myanmar’s manufacturing sector is largely concentrated in garments and textiles produced on the Cutting, Making and Packaging basis, and it contributes to the country’s GDP to a certain extent. Myanmar mainly exports CMP garments to markets in Japan and Europe, along with the Republic of Korea, China, and the US.

Source: The Global New Light of Myanmar

No service and warranty of Suzuki (Myanmar)
changed despite its operation suspension

Suzuki stated on 20 July that car productions of the Suzuki (Myanmar) Motor Co Ltd and Suzuki Thilawa Motor Co Ltd will be temporarily suspended, however, there will be no change in terms of warranty and service.

The suspension is reported because of delays in the import of car parts to be assembled and manufactured due to current circumstances, although the company is doing its best to address the needs of the customers. The statement also stated the profuse apologies for the delay to deliver the cars to the customers and for not being able to predict the exact time of the delivery.

However, it stressed that the company will fully serve better services regarding the purchased cars and urged customers to understand if due to circumstances any problems occur. Since 2019, 13,000 Suzuki cars have been sold in Myanmar, accounting for 60 per cent of the market.

Source: The Global New Light of Myanmar

Lentils-and-beans

India likely to import over 50,000 tonnes of
black gram from Myanmar in two months

India is expected to bring in over 50,000 tonnes of black gram (urad in India) from Myanmar in two months, according to a report cited by Agri World Mumbai. India is expected to import about 15,000-20,000 tonnes of Myanmar’s black gram in July and about 30,000-35,000 tonnes in August. Myanmar sent 15,000 tonnes of black gram to India in June as well. Myanmar has a decent stock of approximately 300,000 tonnes of black gram. If the country exports about 50,000 tonnes to other countries, 200,000-225,000 tonnes of black grams remain for exports.

Additionally, the stock of black gram is getting lower in the market and the volume of sales dropped. At present, a ship loaded with 5,000 tonnes of black gram and pigeon peas left for Chennai, India on 14 July. There is a shipment of 180 containers (4,320 tonnes) scheduled on 17 July and 380 containers (9,120 tonnes) on 23 July. India is facing crop yield drop under drought conditions and declining sowing acres this monsoon season. Their growers are increasingly cultivating cotton and soybean. The sowing acres of rice and various pulses dropped. The areas of urad fell from 1.94 lakhs hectare to 0.93 lakh hectare in 2022, according to the Agri World Mumbai.

Additionally, India’s government reportedly has 110,000 tons of green gram (Moong), 20,000 tonnes of black gram (urad), 9,000 tonnes of pigeon peas (tur) and 7,000 tonnes of red lentils (Masoor) as buffer stock. India is reportedly to import 50,000-75,000 tonnes of black gram (urad in India) and they will purchase black gram from Myanmar to keep them in reserve. India, the main buyer of Myanmar’s black grams, has high consumption of black grams. Furthermore, it re-exports them to the external market after processing the grams.

The annual consumption of black grams in India is estimated at 2.7-2.8 million tonnes. India extended relaxations of conditions regarding clearance consignment for black gram and pigeon peas until 31 March 2023. The prevailing price of black gram is K1,537,000 per tonne, whereas the price peaked at K1,700,000 per tonne on 30 June. Myanmar yearly produces approximately 400,000 tonnes of black gram and about 50,000 tonnes of pigeon peas. Myanmar is the top producer of the black gram that is primarily demanded by India, while pigeon peas, green grams and chickpeas are cultivated
in Australia and African countries beside Myanmar.

Source: The Global New Light of Myanmar

Mobile market trucks run in 11 districts on 17 July, offers palm oil price at cheaper rate

Sixteen mobile market trucks operated by 11 companies, in coordination with Myanmar Edible Oil Dealers’ Association, are back to business in 11 districts starting from 17 July in order to offer the palm oil at the subsidized rate to the consumers. The mobile market scheme will cover the remaining townships in the upcoming days. The market prices will be changed according to the reference rates on the weekly basis. Mobile market trucks offer palm oil at the cheaper rate of K4,750 per viss (a viss equals 1.6 kilogrammes) this week in Yangon Region.

Under the guidance of the Republic of the Union of Myanmar Federation of Chambers of Commerce and Industry (UMFCCI) and the Myanmar Rice Federation, the affiliated associations including Myanmar Rice Traders Association, Myanmar Edible Oil Dealers’ Association and rice exporters are offering staple food at fairer price with the mobile trucks in the respective townships in Yangon Region. The reference wholesale price of palm oil in Yangon market for a week from 11 to 17 July is set at K4,650 per viss, according to the Supervisory Committee on edible oil import and distribution under the Ministry of Commerce. The committee has been closely observing the FOB prices in Malaysia and Indonesia including transportation cost, tariff and banking service and issuing the wholesale market reference rate for edible oil on a weekly basis.

If those retailers and wholesalers are found overcharging, storing inventory intentionally and attempting unscrupulous action to manipulate the market, they will face legal action under the Special Goods Tax Law, MoC released a statement. The Ministry of Commerce is striving for the consumers not to worry over the supply of edible oil. The ministry is also trying to secure edible oil sufficiency, supervise the market to offer the reasonable price to the consumers, maintain the price stability and prevent market manipulation. 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 oil sufficiency in the domestic market, about 700,000 tonnes of cooking oil are yearly imported through Malaysia and Indonesia.

Source: The Global New Light of Myanmar

Maximum amount of CMP garments, industrial raw materials, agricultural products exported abroad in Q1

During the three months of the 2022-2023 Financial Year-FY, industrial raw materials, including CMP garments, were exported the most, and agricultural products were the second largest, according to the Ministry of Economy and Commerce. In this way, industrial raw materials worth US$2,699.385 million were exported from 1 April to 1 July of the 2022-2023FY.

During this period, among the industrial raw materials exported from Myanmar, officials were able to export the most CMP garments, as well as the most industrial raw materials exported to foreign countries. In the same period of the 2021-2022FY, industrial raw materials worth $1,958.575 million were exported, and this year it was able to export $740.81 million more worth of goods compared to the same period of the previous year.

During the three months from 1 April to 1 July of the 2022-2023FY, agricultural products worth $1,097.809 million were exported by private owners. During the three months of FY2022-2023, it was able to export the second-largest number of agricultural products to foreign countries. In the 2021-2022FY, the export value of $1,102.605 million has decreased compared to the previous year by $4.796 million. 

Source: The Global New Light of Myanmar

Domestic petrol price decreases to K1,700 per litre for 92 Ron

According to the fuel market, the price of domestic fuel has fallen again and reached K1,700 per litre for Octane 92. Last 22 June, the petrol price in the Yangon market was K2,275 for Octane 92, K2,375 for Octane 95 and K2,720 for premium diesel. The price of diesel reached K2,690 per litre. On 16 July, the price of fuel oil in the Yangon market is K1,700 for Octane 92, K1745 for Octane 95, K2,190 for premium diesel, and K2,130 for one litre of diesel. Therefore, within 24 days, according to the type of fuel, per litre has decreased by from K530 to K630. The decline in fuel prices is due to the decline in Singapore-based Mean of Platts Singapore (MOPS) prices.

It is reported that the current Motor Fuel Import, Storage and Distribution Supervisory Committee is working to ensure that there is no shortage of motor fuel in the market and to stabilize prices. In addition, in order to ensure that the fuel prices in the market are balanced, the Petroleum Products Supervision and Inspection Department publishes daily fuel reference prices under the supervision of the Fuel Import, Storage and Distribution Supervision Committee. The reference prices are based on Singapore’s daily MOPS price. It is based on the reference wholesale price in Yangon, taking into account operating costs and reasonable profit percentages, premium insurance fees plus taxes.

After adding reasonable average transport costs to the reference wholesale price, officials have calculated the reference retail prices that should be according to the regional and state capitals. Reference retail prices are published via national newspapers, media and the department’s Facebook page and its website. Myanmar can meet only about 10 per cent of its domestic fuel demand, and the remaining 90 per cent has to be imported and used from abroad, so the price of fuel sold locally is changing depending on the international price.

It is reported that the price of domestic motor oil is distributed at a reasonable price compared to the regional countries, and officials are working to ensure that there is no mutual harm between the sellers and the users to have reasonable prices. In some countries, due to taxes on the import of motor fuel, the price is higher than in Myanmar. In Malaysia, the government provides additional payments as subsidies so the price is about 60 per cent cheaper than in Myanmar. Every country set fuel prices according to its own country’s policy, but Myanmar collects only a small percentage of taxes and distributes the fuel to the public at a low price, officials said.

Source: The Global New Light of Myanmar

DSC02381-sskm-1024x583

Thailand remains top trade partner among neighbouring countries in Q1

The bilateral trade with neighbouring Thailand is recorded as the highest among the neighbouring countries, amounting to US$1.315 billion in the first quarter of the current financial year 2022-2023, statistics issued by Myanmar Customs Department indicated. During the April-June period, Myanmar’s border trade value stood at $587 million with China, $1.3 billion with Thailand, $9.358 million with Bangladesh and $5.377 million with India respectively.

Myanmar’s exports mostly have gone to Thailand in the past three months. Exports to Thailand via border posts were estimated at $916 million, while imports were valued at $398.9 million. Additionally, Thailand has been Myanmar’s largest trade partner among the regional countries as well. Exports of natural gas from the Taninthayi Region contributed to the enormous increase in border trade with Thailand. The corn exports to Thailand have also shown a significant increase since 2019, the Ministry of Commerce stated.

Myanmar primarily exports natural gas, fishery products, coal, tin concentrate (SN 71.58 per cent), coconut (fresh and dry), beans, corn, bamboo shoots, sesame seeds, garment, footwear, plywood and veneer, broken rice and other commodities to Thailand. It imports capital goods such as machinery, raw industrial goods such as cement and fertilizers, and consumer goods such as cosmetics, edible vegetable oil and food products from the neighbouring country. Myanmar is doing border trade with the neighbouring country Thailand through Tachilek, Myawady, Myeik, Mawtaung, Hteekhee, Kawthoung and Maese border areas respectively. Among them, the Myawady border post performed the largest trade in border trade with Thailand, followed by Hteekhee. 

Source: The Global New Light of Myanmar

uJtE4K6V-10

Palm oil prices peak at over K7,000 per viss despite wholesale reference rate of K4,650 in Yangon

Although the wholesale reference rate of palm oil is set at K4,650 per viss (a viss equals 1.6 kilogrammes) in Yangon Region, the palm oil prices were valued at over K7,000 per viss in the domestic market. The Supervisory Committee on edible oil import and distribution under the Ministry of Commerce has been closely observing the FOB prices in Malaysia and Indonesia including transport costs, tariffs and banking services and issuing the wholesale market reference rate for edible oil on a weekly basis.

The reference rate of palm oil in the Yangon market for a week from 11 to 17 July is set at K4,650 per viss. However, the market price is higher than the reference rate. The palm oil price is estimated at over K7,000 per viss in Yangon Region. Additionally, some oil shops get access to limited sources of supply although they sell palm oil at a reference rate depending on the volume quota. The retail price of palm oil is over K8,100 per viss and the wholesale price is K8,000 per viss in Ayeyawady Region.

If those retailers and wholesalers are found overcharging, storing inventory intentionally and attempting unscrupulous action to manipulate the market, they will face legal action under the Special Goods Tax Law, MoC released a statement. The Ministry of Commerce is striving for the consumers not to worry over the supply of edible oil. The ministry is also trying to secure edible oil sufficiency, supervise the market to offer a reasonable price to the consumers, maintain price stability and prevent market manipulation. 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 oil sufficiency in the domestic market, about 700,000 tonnes of cooking oil are yearly imported through Malaysia and Indonesia.

Source: The Global New Light of Myanmar

sesame-plantation

Peanut, sesame prices spiking tracking resumption of oil crop exports

The prices of peanut and sesame seeds are edging up in the domestic market, the market’s price data indicated. On 1 July, the peanut price moved in the range of K4,100 and K4,400 per viss (a viss equals 1.6 kilogrammes), whereas the price rose to K4,600-K4,700 per viss on 9 June. The figures reflected an increase of K300-K550 per viss. Similarly, the prices of sesame hit the highest of K2,556 per viss of Niger seed, K3,333 per viss of brown sesame and K5,444 per viss of black sesame (Samone variety) on 1 July.

The price rose to K2,711 for Niger seed, K3,933 for brown sesame and K5,778 for black sesame on 9 July. The price of various sesame seeds showed an increase of K150-K600 per viss. After Myanmar’s export ban on oil crops reversed, the prices of peanut and sesame prices inflated. The local millers are also increasingly purchasing them, scaling the stocks down, according to the commodity depots.

Last April, world’s top palm oil exporter Indonesia, which is one of the main oil suppliers to Myanmar, declared an export ban on cooking oil export to reduce domestic shortage. Consequently, Myanmar’s Trade Department under the Ministry of Commerce temporarily suspended exports of oil crops (peanut and sesame) from 9 May to ensure oil self-sufficiency. Exports of Myanmar’s edible oil crops will resume as the world’s top palm oil exporters return to normalcy, according to a notification dated 5 July 2022 released by the Trade Department.

Source: The Global New Light of Myanmar

Govt to grant loans for setting up sunflower oil mills

The government arranges to grant loans for the establishment of sunflower oil mills while the country is promoting sunflower cutivation rate, said Union Minister for Commerce Dr Pwint San during a meeting with members of Edible Oil Import and Distribution Supervisory Committee, Myanmar Edible Oil Millers’ Association and oil importers in Yangon on 9 July.

The Union Minister said it should promote the local production rate to reduce the palm oil import volumes. It is important to produce quality palm oil for the consumers. The country now produces crude palm oil and still needs to produce high quality palm oil. The importers should follow the set rules and regulations, he added.

The government also urged the business people to use Consumer Pack instead of oil barrels in coming fiscal year. He also stressed the advantages of using Consumer Packs such as there will be accountability of companies concerned by describing the trademark in full and protection of the rights and interests of consumers.

Source: The Global New Light of Myanmar