Gap in commodity opening and selling prices emerges in markets

Although there is a daily notification of the opening prices of the commodities traded in the commodity depots, a shortage or an abundance of goods has led to price changes in the market time after time, some buyers said. As for onions, commodity depots in the Bayintnaung Market set the opening price at 7 am depending on different origin regions. Depots from some regions often opened more than one price for onion based on its quality. The opening price for potatoes is announced around 10 am. Customers arrive at the Bayintnaung Market before 7 am every day, the opening time of commodity depots.

They speculate the situation of opening prices based on the inventory information of some depots. They pre-order the desired amount of goods on days when the opening prices may increase due to the low availability of goods. Only then, can buyers get the goods when they are in short supply. When commodity depots are overstocked, dealers purchase commodities only after the declaration of opening prices. Brokers sell the commodities, based on the depot opening price, at a higher price owing to high demand and low stock of goods, and at a lower price for bad quality goods and excess goods. Some retail shops in the market can get unpopular commodities at a low price, through the credit system.

Thus, associated people have to inquire about the price changes in the market in addition to the opening prices of commodity depots. Dealers from Yangon have to check the actual purchase price in regions besides the daily opening prices so that they can adjust the selling prices with other dealers. The supply of onion and chilli pepper to the border and some major cities in the delta region has decreased. Thus, direct exports from the origin regions have emerged, resulting in a lower price of commodities due to the lack of brokerage fees. Commodity depots in regions set their opening prices depending on that of the Bayintnaung Market before. Nowadays, brokerage house owners evaluate their opening price by monitoring the market price in other regions as well.

Source: The Global New Light of Myanmar

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Myanmar ships over 1.639 mln tonnes of rice to external markets in past 9 months

Myanmar conveyed over 1.639 million metric tons of rice and broken rice to foreign trade partners in the past eight months (April-December) of the current financial year 2022-2023, with an estimated income of US$600 million, according to Myanmar Rice Federation (MRF). In the past nine months, more than 42 exporter companies delivered over 1.264 million MT of rice and broken rice to external markets by sea, whereas over 369,162 MT were sent to neighbouring countries via border posts. Myanmar shipped rice and broken rice to regional countries, countries in Africa and European Union member countries through maritime trade.

It is also exported to neighbouring countries, China and Thailand through cross-border posts. China is still the main buyer of Myanmar’s rice in the past nine months, purchasing over 264,000 tonnes of rice and over 237,000 tonnes of broken rice. Myanmar exported rice to over 20 foreign markets in the past months, mostly to China (264,284 MT), followed by Bangladesh, the Philippines and other European countries such as Italy, Spain, Poland, Belgium, the Netherlands and France. Additionally, Myanmar primarily conveyed 278,219 MT of broken rice to China and 230,488 MT to Belgium.

The prices of high-grade rice varieties stood at K60,000-100,000 per bag and K35,500-50,000 per bag for low-grade rice varieties. The export price of Myanmar’s rice was relatively lower than the rates of Thailand and Viet Nam, according to MRF. The federation targeted to ship two million tonnes of rice this financial year. Myanmar has shipped more than 1.4 million tonnes of rice and broken rice to foreign trade partners between 1 October and 31 March in the past mini-budget period (2021-2022), Myanmar Rice Federation stated. Myanmar bagged US$700 million from two million tonnes of rice exports to foreign countries in the past 2020-2021 financial year. 

Source: The Global New Light of Myanmar

New Sittway Port for Myanmar-India transport project to open soon

The new Sittway Port, a transit transport project of Myanmar and India, will be opened soon, according to the Rakhine State Chambers of Commerce and Industry. The new port is a multi-modal transit transport facility on the Kaladan River connecting Myanmar and India. Currently, the port is ready for the entry and exit of international ships and plans are underway to admit the local vessels.

A total of 2,500 tonnes of quality rice from Rakhine State can be exported via the Sittway Port in early January this year and the Rakhine merchants expect that the port would be operational during this month. The Kaladan Multi-Modal Transit Transport Project includes Sittway Port expansion, dredging for Kaladan River expansion and road construction to link Paletwa of Chin State with Mizoram state of India.

The Indian products will be transported to Paletwa via Sittway passing the Kaladan River by sea and Myanmar products will be exported by truck from Paletwa to Mizoram. The merchants, entrepreneurs and officials of the two countries also discuss establishing a shipping line to run weekly or monthly boat services after the port is inaugurated. The Indian and Myanmar governments signed the Kaladan Multi-Modal Transit Transport Project in 2008 and the operation of the project was started in September. The Indian government invested $484 million in the project.

Source: The Global New Light of Myanmar

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Thilawa SEZ attracts over US$2.188 bln as of Nov 2022

Foreign investments of over US$2.188 billion have been pumped into Thilawa Special Economic Zone under the Special Economic Zone Law as of November 2022, the statistics released by the Directorate of Investment and Company Administration (DICA) indicated.

Myanmar Investment Commission will prioritize the manufacturing of fertilizer, cement, iron and steel, value-added foodstuff, electric vehicle and pharmaceutical and medical supplies, agriculture and livestock farming and related industries and public transportation services for investments.

At present, approximately 102 factories are running at Zone A and B of the Thilawa SEZ. The power sector topped the investment line-ups with more than $3.121 billion of investment, as per the DICA. The commission welcomes both foreign direct investment and domestic investments made by Myanmar citizens in those sectors. MIC and the related ministries will also ensure investment facilitation. 

Source: The Global New Light of Myanmar

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Mang Wein, Nantaw, Sinphyu borders to resume on 8 Jan 2023

Trade activities on some Sino-Myanmar borders including Nantaw, Sinphyu and Mang Wein, which performed the majority of trade, are slated to restart on 8 January, said U Min Thein, vice-chair of Muse Rice Wholesale Centre. China has shut down all crossings linking to the Muse border amidst the COVID-19 pandemic, imposing travel bans at Nantaw and Sinphyu borders from 1 April 2020 and Mang Wein from 30 March 2021. Only Kyinsankyawt resumed trading activities on 26 November 2022 after the closure on 8 July 2021. “Mang Wein border saw a bustling trade with 400 and 500 trucks.

The other two crossings – Nantaw and Sinphyu – have been closed down for three years. Now, those will be reopened on 8 January. They will be accessible by road vehicles (trucks, vans, motorcycles) again,” U Min Thein said. Additionally, the driver-substitution system will be abolished along with the reopening of the border crossings. There is no responsibility and accountability if goods are damaged under the driver-substitution system. Therefore, Myanmar exporters choose short-haul driver service at the Kyinsankyawt border and bear high freight costs.

If this system is cancelled, we can directly go on the China side, tackle delay problems, facilitate trade in the Muse border, save high short-haul driver costs and help cut unemployment, U Min Thein added. Myanmar daily delivers rice, broken rice, pulses, rubber, watermelon, fishery products, chilli pepper and other food commodities to China through Kyinsankyawt with about 100 trucks and building materials, electrical appliances, pharmaceuticals, fertilizer, household goods and industrial raw materials are imported into the country with 40 trucks. Myanmar has opened five border trade posts with China – Muse, Lweje, Kampaiti, Chinshwehaw and Kengtung. The majority of the trade is carried out through Muse, Ministry of Commerce’s data indicated. 

Source: The Global New Light of Myanmar

Pure gold price rallies to K2.733 mln per tical in domestic market

The prices of pure gold hovered in the bear market with over K2.733 million per tical (0.578 ounces, or 0.016 kilogram) in the domestic market. The price has risen tracking the increase in global gold spot price, which stands at US$1,845 per ounce. Therefore, Yangon Region Gold Entrepreneurs Association (YGEA) raised the reference price to K2,173,500 per tical. There is a price difference of over K550,000 per tical between the YGEA’s reference price and the market price.

YGEA calculated the price depending on the Central Bank of Myanmar’s reference exchange rate of K2,100, with some addition, said U Myo Myint, chair of YGEA. The US dollar is exchanged at K2,850 in the unofficial forex market. Meanwhile, YGEA called for the gold shops in Yangon Region to sell pure gold at K2,530,000 per tical, according to its notification released on 30 October 2022. The soaring dollar exchanging at over K4,500 pushed up the pure gold price to a record-high of K3.7 million per tical in late August.

For the gold price to decline, the Ministry of Natural Resources and Environmental Conservation has been selling gold ingots in Yangon, Mandalay and Nay Pyi Taw under the auction system. With an aim at reducing gold prices, the YGEA and Mandalay Region Gold Entrepreneurs Association sold gold bullion supplied by the executive members and the members as well. Under the guidance of the Central Committee on Ensuring Smooth Flow of Trade and Goods, the Monitoring and Steering Committee on Gold and Currency Market was formed on 21 January 2022 as gold and currency market stability play a crucial role in the trade facilitation.

Source: The Global New Light of Myanmar

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Mandalay market sees brisk sales of pulses, oil seeds during New Year’s Eve

Pulses and oil seeds with great export potentials were highly traded at the end of the year 2022, said Mandalay traders. The traders of black gram, pigeon pea, green gram and oil seeds were doing a roaring trade before the New Year. The prices surged to K165,000 per three-basket bag of black gram, K170,000 for pigeon pea and over K7,000 per viss of peanut at the end of the year.

In the corresponding period of 2022, the prices touched a low of K125,000 per bag of black gram, K120,000 for pigeon pea and K3,200 per viss of peanut, said U Soe Win Myint, an owner of Soe Win Myint brokerage in Mandalay city. “The prices of black gram and pigeon pea increased higher than that of the year-ago period. Green gram and peanut which are exported to China also fetched a good price. The favourable weather condition this year supported the crop yield. The prices grew by 30 per cent compared to a similar period in the previous year (2021).

At present, black gram, green gram, sesame seeds, peanut, kidney bean, rice bean, butter bean, and black-eyed beans are being harvested. The pulses and seeds importing countries also raised the purchase order. Therefore, the agricultural products will contribute to the Gross Domestic Product growth in the coming year,” he elaborated. The pulses and oil seeds are abundantly flowing into the bustling Mandalay markets. They are commonly grown in Mandalay, Sagaing and Magway regions throughout the year. However, they are cultivated as winter crops in Yangon, Bago and Ayeyawady regions. 

Source: The Global New Light of Myanmar

YCX maritime cargo transportation process connected with ports in four ASEAN countries on 3 January

The YCX marine product transportation process will be launched to connect with ports in four ASEAN countries, including Myanmar on 3 January. The maritime cargo transportation business will be operated along the route of Singapore-Port Klang-Yangon-Yangon-Port Klang-Singapore- Sihanoukville-Singapore. It is carried out by CMA CGM Group, the third largest container shipping company in the world.

It is the Yangon Cambodia Express (YCX) sea route that will directly connect with Myanmar, Singapore, Malaysia and Cambodia. CMA CGM Group said that it is planning to operate a ocean-liners to four countries in the Southeast Asian region with the aim of improving imports and exports with rapid delivery of goods due to the introduction of new sea transportation to transport goods.

In addition, transport charges can also be reduced. CMA CGM is a maritime shipping company that uses 257 shipping routes to connect between 420 ports in more than 160 countries. The company will mainly use container ships to transport cargo among ASEAN four countries.

Source: The Global New Light of Myanmar

CBM reassures public about maximum security of banknotes

The Central Bank of Myanmar (CBM) is making concerted efforts to ensure maximum security of banknotes, said Dr Lin Aung, deputy governor of the CBM. He gave the remark at the coordination meeting of banknotes distribution and management matters held on 27 December in Nay Pyi Taw. The CBM has the sole right to publish currency notes and manage the currency. The CBM is prioritizing the security features of the notes, detecting fake notes and eliminating soiled notes.

It will implement exchanging of the notes which have been excessively soiled, brittle and mutilated. The investigation will be undertaken to spot counterfeit notes and seize those counterfeit money sellers and distributors. Under the Union Bank of Burma Act 1952, the Union Bank of Burma’s new financial department was bestowed power to issue the currency notes and commenced the central bank’s banking operations on 1 July 1952.

After that, the promissory notes are amended. Newly issued notes included 1-, 5-, 10-, and 100-Rupee notes. Then, the Kyat currency was connected. Kyat note bears the watermark of a peacock. For the second time, the banknotes had an image of Bogyoke Aung San in military uniform in 1958. Bank notes of K1,5,10 and 100 were issued on 12 February 1958 and 21 days after, K20 and 50 notes were issued respectively. It is the first-ever currency note issued in Myanmar. 

Source: The Global New Light of Myanmar