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Price of exported low-quality rice stands at K23,000 per 108-pound bag due to bank withdrawal limit

by TRADING

The price of exported low-quality rice cannot go up and is fixed at only K23,000 per 108-pound bag because of the bank withdrawal restriction, said Secretary U Than Oo of the Bayintnaung Rice Wholesale Centre. Although the rice traders have money in their savings account, they are limited in the withdrawal of cash from their accounts. Thus, they are being faced with limited trading and cannot make cash payment for their trading. As for our exporters, we are trading the rice with foreign currency.

Then, people have exchanged foreign currency for Myanmar Kyat and have to wait to get the cash from the bank. They have cash in our saving accounts. But they cannot withdraw enough amount of cash from the bank. They have tried to connect with the Myanmar Economic Bank and other private banks. Even the connected banks are not able to pay the cash. They have to pay for the rice here, but they cannot withdraw the money from the bank. This is the reason why the price of the rice cannot go up. Besides, there are only a few companies that buy rice to export.

The companies are also buying rice to export it to Bangladesh. Therefore, the price of the exported rice is not very competitive. The price is not competitive in the rice market. Earlier, the purchasers bought the rice through border trade. The retail sellers bought back from the traders as well. The rice exporters have different foreign markets such as the European market, Asian market and Bangladesh market. Only a competitive market makes the rice sell well, and the price has also gone up. About 80,000 rice and broken rice bags were earlier traded daily at the Bayintnaung Rice Wholesale Centre. But the trade volume plummeted to about 30,000 bags at present.

Source: The Global New Light of Myanmar

Dollar exchange rate falls by K10 after CBM sells $3 mln

by ECONOMY

The US dollar exchange rate fell by K10, following the Central Bank of Myanmar (CBM) selling 3 million US dollars, according to the local foreign exchange market. The US dollar exchange rate dropped when the CBM started to sell 3 million dollars at an auction rate for the first time on 7 June. The dollar exchange rate against Myanmar Kyat stood at K1,590 per dollar on 7 June. The rate directly fell to K1,577 per dollar on 11 June.

On 12 May, the dollar exchange rate hit a high of K 1730 per dollar in the local foreign exchange market. Consequently, the CBM has been selling dollars at an auction rate since 12 May, resulting in the exchange rate falling to K 1,580 per dollar this month. CBM is selling the US dollar at an auction rate, intending to keep the exchange rate stable. In the domestic market in 2021, the highest and 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

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CMP garment exports drop by 20 per cent in eight months

by MANUFACTURING

Myanmar’s garment exports witnessed a decline of over 20 per cent in the past eight months (Oct-May) of the current financial year 2020-2021 compared with a year-ago period on the back of a slump in demand by the European Union market, stated the Ministry of Commerce. Exports of garments manufactured under the cut-makepack (CMP) system were valued at US$2.2 billion between 1 October and 28 May in the current FY, according to data from the Ministry of Commerce. The figures plunged from $2.7 billion in the corresponding period of the last FY2019-2020. The factories are facing cancellation of order and slump in output, new orders. However, The Swedish fashion retailer H&M is gradually placing orders from Myanmar again after it paused in March. Then, more international fashion retailers such as Primark and Bestseller start to resume new orders. Additionally, Germany will also continue its support for Myanmar garment businesses so that Myanmar women can continue their livings, posted the Germany Embassy Yangon’s Facebook.

The garment sector is among the prioritized sectors driving up exports. The CMP garment industry emerged as a promising one, with preferential trade from Western countries. Nevertheless, all cannot still expect normalcy for now due to the possible disruption in the logistics and supply sector and other serious consequences amid the political instabilities and the COVID-19 impacts, traders stressed. The Myanmar Garment Manufacturers Association (MGMA) reported in the May newsletter that 564 factories are actively running the business, and 177 has no operation. The factories include foreign investment, domestic investment and joint venture businesses. China constitutes the majority of the foreign investment with 302 factories. Myanmar’s manufacturing sector recorded an accelerated downturn in the previous months as political changes led to factory closures. The layoff is extended, and some workers were forced to return to their hometowns. Turning to prices, higher material costs and unfavourable exchange rate movements contributed to a sharp increase in cost burdens, the HIS Markit stated.

More than 500 members and over 700 garment factories in Myanmar are listed on the MGMA, with an employment of about 600,000 workers. Women account for 95 per cent of workers in the garment industry. However, a third of garment industry workers are out of jobs in difficult times. Myanmar’s manufacturing sector is primarily concentrated in garment and textiles produced on the Cutting, Making, and Packaging basis. It contributes to the country’s GDP to a certain extent. Myanmar mainly exports CMP garments to markets in Japan and Europe and the Republic of Korea, China, and the US. The export value of CMP garments was only $850 million in the 2015-2016 FY, but it has tripled over the past two FYs. In the 2016-2017FY, about $2 billion was earned from exports of CMP garments. The figure increased to an estimated $2.5 billion in the 2017-2018FY and $2.2 billion in the 2018 mini-budget period (from April to September). According to the Commerce Ministry, it tremendously grew to $4.6 billion in the 2018-2019FY and $4.8 billion in the 2019-2020FY.

Source: The Global New Light of Myanmar

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Myanmar exports drop 18% in nearly 8 months amid global pandemic

by TRADING

The COVID-19 pandemic affected the country’s exports in the nearly eight months (1 Oct- 28 May) of the current financial year 2020-2021 with a drop of 18 per cent as against last FY. Myanmar’s exports in the past eight months touched a low of US$9.69 billion, reflecting a tremendous drop of over $2.169 billion compared with a year-ago period of the previous FY, according to data from the Ministry of Commerce. During the corresponding period in the previous FY, exports stood at $11.86 billion, according to data released by the ministry. The pandemic deals a severe blow to the manufacturing, livestock, fishery, forest, mineral and other service sectors as it disrupted the supply chain and logistics sector and shut down the events.

Additionally, most people demand only staple food. As a result of this, the export sees the growth in agriculture sector only this year. The drop in natural gas exports, gems and jewellery, and CMP garments contribute to the slump in exports, the ministry stated. Both sea trade and border trade dropped amid the coronavirus impacts. The neighbouring countries tightened the border security and limited the trading hours to contain the spread of the virus. Pandemic-induced container shortage pushed up the freight rates in Myanmar, causing delays for exporters.

Of the seven export groups, agricultural exports increased $834.29 million against a year-ago period. In contrast, exports of livestock, forest products, minerals, fishery products and finished industrial goods drastically declined. Between 1 October and 25 May of the current FY, export values have registered at $3.6 billion for agro products, $16.6 million for livestock, $536.57 million for fishery products, $620.5 million for minerals, $85.88 million for forest products, $4.5 billion for manufactured goods, and $282.37 million for other goods. This year, Myanmar’s top export countries are listed China, Thailand, Japan, India, USA, Spain, Germany, UK, ROK and the Netherlands.

Source: The Global New Light of Myanmar

Paddy price remains high, hitting around K650,000 per 100 baskets

by ECONOMY

The price of paddy remains high, hitting around K650,000 per 100 baskets (one basket is equivalent to 46 pounds), said U Than Oo, the secretary of Bayintnaung Rice Wholesale Centre.cCurrently, the paddy is no longer in the hands of the farmers, and it is stockpiled in the warehouses. The paddy traders are calling for a high price to sell the paddy. Consequently, the price of paddy remains high, he added. The price of paddy has mounted mostly in the regional market. Earlier, the paddy was sold directly from the farmland.

Now, the paddy is being sent to the warehouse to stockpile. So, the warehouse owners will sell the stored paddy at their calling prices. Besides, the price of milled paddy to export abroad has risen, but the price of rice has not gone up. Thus, the millers who will buy paddy to mill will not be convenient. There are only a few companies that buy rice to export. The rice trading has also dropped because the rice traders are not buying the rice with cash down payment. The traders could not make trading with cash down payment because the bank could not fully operate in money withdrawal-like previously.

Currently, the price of milled paddy exported abroad hits around K600,000 per 100 baskets while the price of rice for domestic consumption moves in the range of K650,000-700,000 per 100 baskets, Bayintnaung Rice Wholesale Centre reported. On 23 July, the Committee for Farmers Rights, Protection and Interests Promotion fixed the basic price of paddy at K 520,000 per 100 baskets if the paddy meets the prescribed criteria—14-per-cent moisture content and a fixed percentage of impurities such as sand, weed, and small stones. In accordance with the Farmers Rights, Protection and Interests Promotion Law, the committee has fixed the basic price of paddy for the local farmers to be able to sell at a fair price and search the market for their produce. 

Source: The Global New Light of Myanmar

List of Successful Bidders for Power Plants under the Department of Sustainable Energy and Hydropower for the Fiscal Year 2020-2021 is released

by ENERGY

The Ministry of Power and Energy has released a list of successful companies for the power plants under the Department of Sustainable Energy and Hydropower for the fiscal year 2020-2021. The list of company that have won the tender has been announced by the Ministry of Electricity and Energy Tender No.47 & 48 / EPGE / 2020-2021 from MOGE website for power plants under the Department of Sustainable Energy and Hydropower for the fiscal year 2020-21. Meeting No. of Tender Scrutiny Committee (17 / 2020-2021) and Tender No.49 & 56 / EPGE / 2020-2021 Meeting of Tender Scrutiny Committee No. (24 / 2020-2021). Among the successful bidders for power plants under the Department of Sustainable Energy and Hydropower, Yadanar Theingi Co., Ltd, Min Wai Thit International Co., Ltd, Pacific High Technology International Co., Ltd, Zayar Regal Aurum Co., Ltd, SOFU Co., Ltd, Arkarthit Enterprise Co., Ltd, Win Sabei Co. , Ltd and Constructive Engineers Co., Ltd are included.

In the 2019-2020 fiscal year, 3,225 megawatts of hydropower will be generated from energy sources. 2773 MW from natural gas; 40 megawatts of solar power; LNG has generated 900 megawatts and coal from 120 megawatts for a total of 7058 megawatts, according to the Ministry of Power and Energy. In 2015-2016 fiscal year, 3181 MW from hydropower in; 1752 MW from natural gas; Coal generates 120 megawatts for a total of 5,053 megawatts. 63% from hydropower; 35% from natural gas and 2% from coal are generated. In the 2018-2019 fiscal year, 11,227.82 million kilowatt-hours will be generated from hydropower generation. 9366.56 million kilowatt hours from natural gas; 2,169.70 million kilowatt hours from steam; Diesel produces 104.73 million kilowatt-hours, according to the Central Statistics Office, citing the Ministry of Power and Energy.

In the 2018-2019 fiscal year, 11,227.82 million kilowatt-hours will be generated from hydropower generation. 9366.56 million kilowatt hours from natural gas; 2,169.70 million kilowatt hours from steam; diesel produces 104.73 million kilowatt-hours, according to the Central Statistics Office, citing the Ministry of Power and Energy. In the 2017-2018 financial year, 12,265.03 million kilowatt hours from hydropower; 7,459.22 million kilowatt-hours from natural gas; 1,080.60 million kilowatt hours from steam; diesel generates 77.55 million kilowatt hours. In the 2016-2017 financial year, 12,265.03 million kilowatt hours from hydropower; 7,459.22 million kilowatt-hours from natural gas; 1,080.60 million kilowatt hours from steam; diesel generates 77.55 million kilowatt hours. The annual power generation capacity of the Ministry of Electricity and Energy was 15965 million units in the 2015-2016 fiscal year. 17867 million units in the 2016-2017 financial year.

In the fiscal year 2017-2018, million units 200555; In the 2018-2019 financial year, 22879 million units; In the 2019-2020 fiscal year, production increased to 27,300 million units, according to a statement from the Central Statistics Office, citing the Ministry of Power and Energy. According to the officials from the Ministry of Power and Energy, four projects are underway including Upper Kengtung Hydropower Project, 51 MW for Myanmar’s electricity needs; 280 MW Upper Yeywa Hydropower Project; 152 MW Central Paunglaung Hydropower Project and 111 MW Thu Htay hydropower project. The Upper Kyaing Kaung Hydropower Project (51 MW) is being built in 2021-2022 and the Upper Yeywa Hydropower Project will generate 280 MW in 2022-2023 to meet the growing demand for electricity. A 152-megawatt central Paunglaung hydropower plant is under construction in 2024-2025 and the 111-megawatt Thu Htay hydropower project is expected to be completed in 2025-2026.

Source: Daily Eleven

In the first eight months of the current fiscal year, natural gas exports generated about $ 1.4 billion, down more than $ 1 billion from the same period last year

by ENERGY

In the first eight months of the current fiscal year, natural gas exports earned about $ 1.4 billion, down more than $ 1 billion from the same period last year, according to an official from the Ministry of Commerce. In the eight months from October 1 to May 28 of the 2020-2021 fiscal year, only $ 1.389 billion was earned from natural gas exports. In the same period last year, it earned $ 2.406 billion. Over the past five years, Myanmar has earned more than $ 17.5 billion from natural gas exports, with the largest export in the 2018-2019 fiscal year at over $ 3.9 billion, published by the Information Unit.

From October 2019 to September 2020, the last fiscal year 2019-2020, natural gas exports generated $ 3.506 billion ($ 3506.62 million). In fiscal year 2018-2019, revenue from natural gas exports reached $ 3.924 billion ($ 3924.92 million). Revenue from natural gas exports in the 2017-2018 fiscal year was $ 3.513 billion ($ 3,513.21 million). In the 2016-2017 fiscal year, revenue was $ 3.116 billion ($ 3,116.34 million). Revenue was $ 3.445 billion ($ 3,445.10 million) in the 2015-16 fiscal year.

Annual natural gas production in the 2016-2017 fiscal year was 67,000 million cubic feet; In the 2017-2018 financial year, 667583 million cubic feet. In the 2018-2019 fiscal year, it produced 62,7007 million cubic feet and in the fiscal year 2019-2020, 670,362 million cubic feet were produced. At the press conference held at the Ministry of Information in Nay Pyi Taw on May 9, 2019, the State-owned newspaper published a statement on the activities of the Ministry of Electricity and Energy in the third year of the people.

According to the Ministry of Power and Energy, there are a total of 104 oil and gas blocks in Myanmar, of which 51 are offshore and 53 onshore. If we look at the per capita electricity consumption increase year by year, the fiscal year 2015-2016 was 263 kWh; 301 kWh in the 2016-2017 financial year; 335 kilowatt hours in the 2017-2018 fiscal year; In the 2018-2019 fiscal year, it was 379 kilowatt hours and in the 2019-2020 fiscal year, it increased to 432 kilowatt hours, and in five years it increased to 169 kilowatt hours, according to the Ministry of Power and Energy.

Source: Daily Eleven

The average inflation rate for February 2021 was 2.61 percent, the lowest since March 2020

by ECONOMY

The average inflation rate for February 2021 was 2.61 percent which has been falling steadily since March 2020, according to the consumer price inflation and inflation rate released by the Central Statistical Organization. The average inflation rate rose for 18 consecutive months from April 2018 to September 2019. It was slightly lower in October and November 2019 and it rose again in December of 2019, January and February of 2020. But it fell again in March, April, May, June, July, August, September, October, November and December and January and February of 2021.

If we look at the national annual inflation rate for the one-year period from February 2020 to February 2021, based on the 2012 , the inflation rate was 8.36 percent in February 2020, and in March 2020, when COVID-19 began in Myanmar 2020, it caused household consumption fell and a decline in fuel prices with an inflation rate of 1.51 percent in February 2021. For the country as a whole, the average inflation rate, based on the 2012 base year consumer prices, averaged 2.61 percent year-on-year in February 2021, down 0.57 percent from 3.18 percent year-on-year in January 202.

From 9.20 percent in February 2020, since March 20, the impact of COVID-19 has been declining in Myanmar, and consumer inflation has slowed and the average inflation rate has risen to 2.61 percent until February 2021. Region Consumer prices and average inflation in the three states and cities were the highest in Ayeyarwady Region at 6.49 percent. In the Union Territory, it is the second highest with 4.67%. Kayin State is the third highest with 4.48%. Annual inflation was highest in Ayeyarwady Region at 4.39 percent and in Mandalay at -19.29 percent, according to the report.

Source: Daily Eleven

Domestic rice prices up by K2,000 per bag

by ECONOMY

The rice prices in domestic markets have increased by K2,000 per bag, said U Than Oo, secretary of Bayintnaung Rice Wholesale Centre. At present, rice worth K32,000-35,000 per bag is highly demanded in the market. The prices of high-quality rice move in the range of K27,000-35,000 per bag. The figures show an increase of K2,000 per bag.

It is expected that the rice fetches at a lower rate before Thingyan Festival (Myanmar New Year Festival in April). Shortly after that, the price usually goes up. During the early monsoon, the rice stocks are commonly found in the hands of millers instead of farmers. Consequently, the price hike occurs amid low supply. The rice prices usually hit a peak in Thadingyut and Tazaungdaing festivals (Oct-Nov). When the newly harvested rice enters the market, the price declines.

The price is unlikely to fall this month, Bayintnaung Rice Wholesale Centre reported. The price possibly remains high for now. The farmers also set the rice crops higher. The demand in the retail market is not that good. The export is not strong as well. As a result, the sharp price hike is not expected amid the low demand. About 80,000 rice and broken rice bags were earlier traded per day at the Bayintnaung Rice Wholesale Centre. In contrast, the trade volume plummeted to about 30,000 bags at present.

Source: The Global New Light of Myanmar

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Individual trades through land border exceed K10.85 bln in four months

by TRADING

According to data released by the Ministry of Commerce, trade conducted by Individual Trading Card (ITC) holders reached over K10.85 billion through the land border in the first four months of the current financial year 2020-2021. The Trade Department issued 23 cards in the Oct-Jan period this FY. Imports exceeded K9.19 billion, and exports were valued at just K1.658 billion. The Myawady border recorded the highest trade value at K7.77 billion, according to the Commerce Ministry. Nevertheless, the figure only reflected imports as individual trading cardholders did not export goods through the Myawady gate. The value of trade carried out by individual cardholders stood at K144 million at Tamu post, K116 million at Tachilek, K704 million at Kawthoung, K2.09 billion at Mawtaung and K14.2 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 the land border 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 the regular traders with import/export licence. Fifty per cent of soap, detergent powder and toothpaste imports through Myanmar-Thailand border are done with ITC cards. Another 50 pc is carried out with the regular import/export licence. The import ban will hike the prices and cause negative consequences to the consumers and traders engaged in border market, a market observer shared his opinion.

Additionally, Myanmar’s Trade Department under the Ministry of Commerce notified that four food commodities are to be temporarily restricted for import via the 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 from 21 November 2012 to 31 March 2013 and exceeded K6.6 billion in the FY2013-2014. They reached K9.37 billion in the 2014-2015FY and stood at over K6.4 billion in the 2015-2016FY. They rose above K18.5 billion in the 2016-2017FY and touched K45.9 billion in the 2017-2018FY, with K22.5 billion during the 2018 mini-budget period (April-September) and K59 billion in the 2018-2019FY.

They drastically plunged to K43.32 billion in FY2019-2020. The individual traders who cannot establish their own company can trade with the ITC in the border area. However, trading volume is limited. The card validity is set for only one year. The cardholders need to extend the card at the respective border posts one month before the 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 posts. The traders can seek the ITC at the offices of Tamu, Muse, Myawady, Tachilek, Lwejel, Sittway, Maungtaw, Chinshwehaw, Kampaiti, Myeik, Kawthoung, Reed, Htantlang, Mawtaung, Hteekhee, Kyainglat, Meisei and export/import offices in Mandalay, Kengtung and Myitkyina. The trade department has issued 1,798 cards so far, intending to boost trade. People in business can trade goods worth K3 million per day using ITCs. The Trade Department has permitted trade of up to K15 million per day over five days.

Source: The Global New Light of Myanmar