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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

According to a rubber price analysis by National Enlightenment Institute (NEI), the prices of rubber rose this month and are likely to stay high in the next two months, July and August, according to a rubber price analysis by National Enlightenment Institute (NEI). At present, Myanmar natural rubber fetched K870 per pound (0.45 kilograms) while the price of the ribbed smoked sheet (RSS) hit K880 per pound. According to last year›s Myanmar rubber analysis data, the price of rubber has risen as rubber production has declined in the off-season in June, July and August. That is why the rubber prices are likely to rise in this year’s rubber off-season, NEI reviewed. The prevailing price of natural rubber fetched K710 per pound while the RSS price hit K720 per pound on 1 January. Thus, there were not many fluctuations in the first five months of this year (JanuaryMay). However, the effects of the political upheavals in February led to a halt to rubber trading and a more volatile condition of rubber price.

Besides, the farmers and entrepreneurs face difficulties in terms of cash flow because of the suspension of banking services. The rubber latex production has dropped because it is time for rubber leaves to fall off in Mon state from the third week of February to the end of March. However, rubber prices slightly rose as of end-May thanks to the strong demand for rubber from the Thailand border and China. On 10 May, the cost of natural rubber hit K920 per pound while RCC touched K930 per pound. In the last five months of 2020, the rubber price ranged from K600-K740 per pound. Thus, this rubber season could earn the farmers a good price. This year’s rise in rubber prices can be attributed to the foreign demand for the rubber to manufacture the rubber gloves to prevent from being infected with COVID-19.

Mon State has the most extensive acreage of rubber in Myanmar, with the production of over 240 million pounds of rubber, according to the 2020 official statistics of Mon State Agriculture Department. Rubber is primarily cultivated in Mon and Kayin states and Taninthayi, Bago, and Yangon regions in Myanmar. As per 2018-2019 rubber seasons, data, there are over 1.628 million acres of rubber plantations in Myanmar. Mon State accounts for 497,153 acres, followed by Taninthayi Region 348,344 acres and Kayin State with 270,760 acres, according to the MRPPA. Further, about 300,000 tonnes of rubber are produced annually across the country. Seventy per cent of rubber made in Myanmar goes to China. In addition to China, the country also shipped rubber to Singapore, Indonesia, Malaysia, Viet Nam, the Republic of Korea, India, Japan, and other countries. Myanmar annually exports over 200,000 tonnes of raw rubber to foreign countries generating over $200 million.

Source: The Global New Light of Myanmar

The prices of the green gram are rising on the back of the high foreign demand, traders said. The prices (Shwe Wah variety) rocketed up to K105,000- 127,000 per three-basket bag. At present, the regular inflow of green grams is seen in the domestic market. India and China steadily demand the green gram. Additionally, some local traders are purchasing the green grams to export them to Thailand and Viet Nam as well.

China accounts for 60 per cent of Myanmar’s green gram exports. In addition, countries in the European Union also purchase green grams from Myanmar. The export volume of green grams to India is lower compared to other countries. China prefers green grams (Shwe Wah variety,) said an official from the Commerce Ministry. China makes value-added products from green grams and sends them to foreign markets. Moreover, it produces bean by-products as feedstuffs. The country has generated $266.49 million revenue from green gram exports in the first half (Oct-Mar) of the current financial year 2020-2021.

Myanmar’s green gram exports have registered at over 330,000 tonnes in the 2015-2016 financial year, over 400,000 tonnes in the 2016-2017FY, and over 350,000 tonnes in the 2017-2018FY and over 300,000 in the 2018-2019FY. Green grams are mostly exported to China through the border trade channels. Of the total pulses’ exports, green grams accounted for more than 26 per cent of the exports in the previous years. As per green gram plantation data, there are over 300,000 acres of plantations in the country. Green grams are primarily grown in Sagaing, Magway, Mandalay, Yangon, Bago, and Ayeyawady regions and Mon and Kayin states.

Source: The Global New Light of Myanmar