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The value of Myanmar’s mineral exports has drastically plunged to US$620.5 million as of 28 May in the current financial year 2020-2021 since 1 October. It reflects a severe drop of $622.7 million as against one year ago period, the Ministry of Commerce’s data indicated. The mineral exports hit over $1.24 billion in the corresponding period of last FY. The coronavirus related disruptions led to the slump in mineral exports this FY. The heightened COVID-19 measures also shut down the events like gem emporium and expo last year, a trader said. So far, excavation of over 1,250 mining blocks has been permitted on a manageable, small, medium, and large scale, according to the Ministry of Natural Resources and Environmental Conservation.

Due to the limited extraction of natural resources, exports of forest products and minerals had dropped significantly in the previous years. Permits for mining blocks were suspended in 2016. However, after two years, Myanmar’s mining sector has now been opened to local and foreign investors, according to the ministry. Within two years of implementing the Myanmar Mining Law, the Mining Department has approved more than 140 out of 3,000 proposed mining blocks. Many more blocks are to be granted the permit. The Myanmar Mining Law was enacted on 24 December 2015. However, the law came into force when the rules were issued on 13 February 2018. Under the new regulations, foreign firms can invest in large blocks covering up to 500,000 acres (about 202,000 hectares).

In contrast, local firms can invest in all kinds of blocks. Investors can seek a permit to mine for minerals such as gold, copper, lead and tin. The licences cover prospecting, exploration, and production. According to data from the Ministry of Commerce, Myanmar’s mineral exports have shown a remarkable increase in the previous FY2019-2020, touching $1.87 billion, an increase of $405.48 million compared with the year-ago period. In the FY2018-2019, mineral exports were pegged at just $1.465 billion. Myanmar’s mineral products constitute 10 per cent of overall exports. About 80 per cent of mineral products are shipped to external markets through sea trade. At the same time, 20 of them are sent to neighbouring countries through border trade channels.

Source: The Global New Light of Myanmar

The value of Myanmar’s imports between 1 October and 28 May in the current financial year 2020-2021 stood at US$10 billion, a sharp drop of $3.338 billion from $13.397 billion registered in the year-ago period, according to data released by the Ministry of Commerce. The value of imports in the consumer, capital, intermediate goods, and CMP businesses groups declined in the current FY. The drop in foreign direct investment this year negatively affected the trade. In nearly eight months of the current FY, capital goods, such as auto parts, vehicles, machines, steel, and aeroplane parts, were brought into the country. Their import value was estimated at $3.6 billion.

The figure was over $1.556 billion lower than those registered in the same period of the previous FY. Meanwhile, Myanmar imported consumer products worth $2.08 billion, including pharmaceuticals, cosmetics, and palm oil. The imports of consumer products showed a slight decrease of $189 million compared with the same period in the previous FY. Intermediate goods make up the second-largest share of Myanmar’s imports, with petroleum products and plastic raw materials being the main import items. This year, imports of raw materials plunged to $3.34 billion from $4.45 billion registered during the year-ago period.

During the same period, $989 million worth of raw materials were also imported for the Cut-Make-Pack (CMP) garment sector. It showed a decrease of $488 million compared with the last budget year. At present, the CMP garment sector, which contributes to 30 per cent of Myanmar’s export sector, is struggling due to the cancellation of order from the European countries and suspension of the trade by western countries amid COVID-19. Therefore, import values of raw materials by CMP businesses have been dropping. The top 10 import countries to Myanmar are China, Singapore, Thailand, Malaysia, Indonesia, India, Viet Nam, Japan, the Republic of Korea and the US, as per data of the Ministry of Commerce. 

Source: The Global New Light of Myanmar

In the first eight months of the current fiscal year, Myanmar’s foreign trade deficit reached more than $ 360 million, according to the Ministry of Commerce. The trade deficit means that Myanmar imports more than it exports in its foreign trade. In the eight months from October 1 to May 28 of the 2020-2021 fiscal year, Myanmar exported only $ 9.691 billion. Imports amounted to $ 10.058 billion. During that period, Myanmar’s exports and imports were worth $ 367.05 million more than exports. As a result, Myanmar’s foreign trade deficit of $ 367.105 million in the first eight months of the current fiscal year.

In the same period last year, Myanmar’s foreign trade deficit reached more than $ 1.5 billion, according to figures released by the Ministry of Commerce. Myanmar exports agricultural products Animal products Fishery products; Mining products; Forest products; Finished industrial products; It is mainly exporting to other exports. Foreign investment goods; Consumer goods Industrial raw materials; It is mainly importing CMP raw materials. Myanmar is developing and implementing export strategies to boost exports, while on the other hand it is trying to reduce the trade deficit as domestic demand has not been reduced due to domestic demand, but there are still some difficulties in practice, said an official from the Ministry of Commerce.

According to the Ministry of Commerce, the trade deficit in Myanmar’s foreign trade was only $ 89.223 million in the same period last fiscal year, 2019-2020. In the last fiscal year 2018-2019, the trade deficit is expected to be reduced to US $ 500 million. However, by the end of the fiscal year, the trade deficit was over US $ 1.15 billion. In the first six months of fiscal 2018, the total trade surplus was over US $ 18 billion, with a trade deficit of over US $ 1 billion. In the 2017-2018 fiscal year, the total trade volume was over US $ 33 billion and the trade deficit was over US $ 3.8 billion. In the 2016-2017 fiscal year, the total trade surplus was over US $ 29 billion, with a trade deficit of over US $ 5 billion, according to figures released by the Ministry of Commerce.

Source: Daily Eleven

Export earnings from the fisheries sector in nearly eight months (1 Oct-28 May) of the current Financial Year 2020-2021 touched a low of US$538.6 million, a significant decrease of $115.79 million from the year-ago period, according to statistics released by the Commerce Ministry. The figures stood at $652.37 million during a-year ago period. Myanmar’s fishery exports have slightly declined this year, owing to the COVID-19 impacts and the transport difficulty amid the political changes. The fishery exports through the Sino-Myanmar border has ground to a halt following the consequences and safety measures on the imported seafood amid the COVID-19 pandemic, traders stressed. Myanmar’s fishery export was experiencing a downturn due to the import restrictions triggered by the detection of the COVID-19 on fish imports in China. China was the second-largest buyer of Myanmar’s fishery products, accounting for US$254 million out of overall fishery export value of $850 million in the past financial year2019-2020.

At present, the fishery sector is dependent on maritime trade only. Food and Agriculture Organization (FAO) and World Health Organization (WHO) issued guidelines to ensure food safety during the COVID-19 pandemic in April 2020. Permitted companies are advised to carry out food safety plans, follow the WHO and FAO guidelines, formulate the safety management system and suspend the exports in case any suspicious foodborne virus or virus infection risk is found in the products. The export is likely to resume once the products meet food safety criteria set by the General Administration of Customs of the People Republic of China (GACC). Myanmar Fisheries Federation stated that only the G2G pact could tackle problems faced in exporting farm-raised fish and prawns and ensuring smooth freight movement between countries in order to bolster exports.

During the last FY2019-2020, MFF expected to earn more than $800 million from fishery exports, and it reached a target. Myanmar exports fisheries products, such as fish, prawns, and crabs, to markets in 40 countries, including China, Saudi Arabia, the US, Japan, Singapore, Thailand, and countries in the European Union. The MFF is making concerted efforts to increase fishery export earnings by developing fish farming lakes that meet international standards and adopting advanced fishing techniques. The foreign market requires suppliers to obtain Hazard Analysis and Critical Control Points (HACCP) and Good Aquaculture Practices (GAqP) certificates in order to ensure food safety. Fishery products must be sourced only from hatcheries that are compliant with GAqP to meet international market standards.

The MFF works with fish farmers, processors, and the Fisheries Department under the Ministry of Agriculture, Livestock, and Irrigation to develop the GAqP system. Processors can screen fishery products for food safety at ISO-accredited laboratories under the Fisheries Department. Myanmar’s economy is more dependent on the agricultural sector to a large extent. Also, the fisheries sector contributes a lot to the national gross domestic product (GDP). Its fishery production, including shrimps and saltwater and freshwater fish, is far better than the regional countries. There are 480,000 acres of fish and prawn breeding farms across the country and more than 120 cold-storage facilities in Myanmar. Myanmar exported 340,000 tonnes of fishery products worth $530 million in the 2013-2014FY, 330,000 tonnes worth $480 million in the 2014-2015FY, 360,000 tonnes worth $500 million in the 2015-2016FY, 430,000 tonnes worth $600 million in the 2016-2017FY, 560,000 tonnes worth $700 million in the 2017-2018FY and 580,000 tonnes worth over $730 million in the 2018-2019FY respectively, according to the Commerce Ministry. 

Source: The Global New Light of Myanmar

Myanmar has generated US$386 million income from exports of rice and broken rice in the first-five months (Oct-Feb) of the current financial year 2020-2021, according to Myanmar Customs Department. At present, rice shipment to European countries is declining. However, Myanmar is constantly delivering rice and broken rice to China and Bangladesh. The market cools down for now due to the transport difficulties and dollar gains. The price is quite stable with the sluggish trade.

Next, China’s Customs granted licences to 47 Myanmar companies on 26 February 2021 to legally export the rice to China through Muse land border this year. The authorized companies for rice export to China increased this year as against last year. However, the permitted volume of rice for exports has not been confirmed yet, said U Min Thein, vice chair of Muse Rice Wholesale Centre. Myanmar traders are sending rice to China through Muse border under new permits at the present time.

Nevertheless, limited money withdrawal permitted by the private banks is disrupting the rice exports. Myanmar set the rice export target at only 2 million tonnes in the current FY as summer paddy growing acreage drops, said U Ye Min Aung, President of Myanmar Rice Federation (MRF). Weather changes affected irrigation water resource availability on agriculture. Consequently, the export figures showed a drop of 300,000 tonnes of rice in exports this year. Myanmar generated over $800 million from rice exports in the previous FY2019-2020 which ends 30 September, with estimated volume of over 2.5 million tonnes.

Source: The Global New Light of Myanmar

Myawaddy Trade Zone OSS Customs Department has sent the instructions to business owners to suspend import of Thai-made soap and toothpaste into the domestic market through Myawaddy on the Myanmar-Thailand border starting from 4 June,2021.

The Department of Commerce direct to reduce foreign exchange, and to protect the market competition, thus among the imports that are allowed to be imported from the border areas (ITC) card, imports of soap, detergent powder and toothpaste has been instructed to suspend according to the notification on (4-6-2021). The Department of Commerce has temporarily banned imports of four food stuffs including varieties of soft drinks, coffee mixes and condensed milk made in Thailand, from border crossings since May 1,and direct to import only by sea.

About 50 percent of the Myawaddy border traders say, among Thai imports into the domestic market, assorted soft drinks, coffee tea mix; and condensed milk to reduce foreign exchange; among the imports that are allowed to be imported from the border areas (ITC) card to protect the market competition on the products, importation of soap, detergent powder and toothpaste will be suspended from (4-6-2021). The suspension of four Thai-made food items across the border has hurt traders at the Myawaddy border, as well as boosted domestic consumption.

Source: Daily Eleven