Over K77 bln loans to be disbursed to farmers to grow monsoon crops this year

by ECONOMY

Mandalay Region Agricultural Development Bank will initially disburse over K77 billion of agricultural loans to farmers from 23 townships in the Mandalay region in order for them to grow monsoon crops starting from 26 May, according to Mandalay Region Agricultural Development Bank (MRADB). The Mandalay Bank Branch has targeted to provide K77.109 billion loans for the cultivation of monsoon crops. The agrarian loans will be disbursed to farmers in 23 townships of the Mandalay region to cultivate monsoon paddy and other crops.

ADB bank is issuing the loans for the benefit of the farmers. The bank will provide the monsoon loans for 2021 to the farmers who have already paid off the principal and interest for the 2020 monsoon loan. Those who have not paid back in full will have difficulty getting 2021 loans. The bank has already collected 18.32 per cent of the loan disbursed last year. The farmers who have not paid off their last year’s debts will not be qualified for a new loan this year. The bank will collect a five per cent interest rate annually.

They are providing the loans with a low-interest rate, said manager of the Myanmar Agricultural Development Bank in the Mandalay region. K150,000 per acre for paddy and K100,000 per acre for other monsoon crops such as peanut, green gram, sesame, bamboo, chickpea, black bean, soya-bean, corn and other crops will be granted as monsoon agricultural loans. The 23 townships that will be provided with agriculture loans for 2021 monsoon crops are Amarapura, Patheingyi, PyinOoLwin, Madaya, Singu, Thabeikkyin, Kyaukse, Singaing, TadaU, Myittha, Meiktila, Wundwin, Mahlaing, Thazi, Myingyan, Taungtha, Natogyi, Ngazun, Yamethin, Pyawbwe, NyaungU and Kyaukpadaung townships.

Source: The Global New Light of Myanmar

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Up to February of the 2020-2021 fiscal year, China, Singapore and Thailand stand next in the top 10 importer list to Myanmar

by TRADING

As of February of the 2020-2021 fiscal year, China was the largest importer of more than $ 2306 million in the top 10 importers. Singapore is worth more than $ 1,132 million and Thailand nearly $ 800 million, according to the Ministry of Commerce. From October to February of the 2020-2021 fiscal year, Myanmar was the largest importer of goods. Singapore Thailand Indonesia, Malaysia, India South Korea Japan Vietnam and the United States.

In the five months to February of the 2020-2021 fiscal year, the largest imports to Myanmar were from China at 2,306.71 million US dollars; $ 1,132.21 million from Singapore; $ 791.606 million from Thailand; 431.08 million from Indonesia; $ 395.16 million from Malaysia; $ 245.94 million from India; $ 198.84 million from South Korea; $ 171.39 million from Vietnam; Japan imported $ 167.97 million and the United States $ 107.81 million. From October to September of the 2019-2020 fiscal year, Myanmar-China trade amounted to $ 12126.278 million, with exports from Myanmar amounting to $ 5,401.943 million and imports from China worth $ 6,724.335 million.

In the 2019-2020 fiscal year, Myanmar-India trade amounted to more than $ 1.3 billion, down more than $ 130 million from the same period last year. From October 1 to the end of September of the 2019-2020 fiscal year, Myanmar exported $ 616.464 million worth of goods to India, while India imported $ 696.937 million worth of goods, with a total trade volume of $ 1,313.401 million.

In the first six months of the 2019-2020 fiscal year, Myanmar’s major trading partners were more than 33 percent with China; Thailand and 13.6 percent; Singapore 9.7%; Japan and 5.3 percent; India and 4%; Pyidaungsu Hluttaw, 34.3% trade with other countries Public Accounts Joint Committee; According to the Findings and Opinion Report No. (8/2020) regarding the first six months report of the National Plan for the fiscal year 2019-2020. From October 1 to the end of September of the 2019-2020 fiscal year, Myanmar’s exports were worth $ 3,095.988 million. According to the Ministry of Commerce, Thailand imported $ 5,109.479 million worth of goods worth US $ 2013.486 million.

Source: Daily Eleven

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Over the last five fiscal years, Myanmar has allowed more than 11,290 billion kyats in investment, the largest in the real estate sector

by INVESTMENT

In the last five fiscal years, more than 11,290 billion kyat was allowed to be invested by Myanmar nationals, the largest in the real estate sector, according to figures released by the Directorate of Investment and Company Administration (DICA). From the 2016-2017 financial year to 2021; As of the end of April, 623 Myanmar citizens were allowed to invest in the field, with a total investment of 11,290.723 billion kyats. Myanmar citizens have access to invest heavily in 12 business sectors: real estate sector, services sector, manufacturing sector, transportation and communications, hotel and tourism, electricity sector, industrial zone sector, livestock and fisheries, construction sector, mining sector, agriculture sector and oil and gas sector.

During that period, 41 businesses were allowed to invest more than 3,070 billion kyats in the real estate sector. It is the largest with over 27% of total Myanmar investment. In the manufacturing sector, 228 businesses are the second largest investors with over 2,570 billion kyats. In the service sector, 147 businesses invested nearly 1,880 billion kyats, the third largest. 17 investments in transportation and telecommunications over 1,150 billion kyats; More than 1,130 billion kyats in 115 businesses in the hotel and tourism sector; 17 projects in the electricity sector over 440 billion kyats; Investment in three industries in the industrial zone sector is over 320 billion kyats. 

In the livestock and fisheries sector, 30 businesses have invested more than 350 billion kyats. About 230 billion kyats invested in the construction sector; Investment in the mining sector is over 75 billion kyats. More than 40 billion kyats invested in agriculture; The investment in the oil and gas sector is over 13 billion kyats. According to the annual investment volume of Myanmar citizens, in the 2016-2017 financial year, 1566350.282 million kyats; 36733485.671 million in the 2017-2018 financial year; In the 2018-2019 financial year, 1744585.199 million kyats. 546,039.124 million kyats between April 2019 and September 2019 (budget period); In the 2019-2020 fiscal year, it was 2619395.628 million kyats, according to the Directorate of Investment and Company Administration.

Source: Daily Eleven

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Muse border market sees a dip in rice export price

by TRADING

The prices of rice and broken rice exported to China via the Muse land border are falling, said Vice-Chair U Min Thein of the Muse Rice Wholesale Centre. In early April, the broken rice fetched 120 Yuan per bag. The low-quality rice was priced 137-142 Yuan per bag depending on varieties (Ngasein, Thukha and Shintong). Over one month later, the price dipped to 117 Yuan for broken rice and 128-137 Yuan for other rice varieties in May, according to Muse Rice Wholesale Centre. China 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, he added. Myanmar traders are delivering rice to China through the Muse border under new permits at present. Nevertheless, limited money withdrawal permitted by the private banks is disrupting the rice exports. Myanmar shipped more than 720,000 tonnes of rice and broken rice to foreign countries over Q1 (1 October and 15 January) of the current financial year 2020-2021 and earned over US$275 million, Myanmar Rice Federation stated. The border trade handled over 308,000 tonnes of rice, while maritime trade covered over 418,000 tonnes in Q1.

This year, Myanmar has shipped rice to 31 foreign markets so far. China is the leading buyer of Myanmar rice (with 340,000 tonnes), followed by the Philippines (36,000 tonnes) and Poland (14,000). Meanwhile, Myanmar exported broken rice mainly to China (210,000 tonnes), followed by Belgium (46,000 tonnes) and Thailand (6,300 tonnes). Broken rice was placed in 16 foreign markets. Weather changes affected irrigation water resource availability in agriculture. Myanmar Rice Federation (MRF) Chair U Ye Min Aung said that as a result, Myanmar set rice export target at only 2 million tonnes in the current FY as summer paddy growing acreage drops. Myanmar generated over $800 million from rice exports in the previous FY2019-2020 ended 30 September, with an estimated export volume of over 2.5 million tonnes. 

Source: The Global New Light of Myanmar

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Sesame seeds export tops US$272.79 mln in five months

by TRADING

Myanmar’s sesame seeds export has earned US$272.79 million in five months (Oct-Feb) of the current financial year2020-2021, according to data released by Myanmar Customs Department. The price of sesame seeds is rising a bit for now owing to the appreciation of the dollar. At present, the black sesame seeds (Samone variety) fetched K120,000-148,000 per bag, and white sesame seeds were priced at K115,000-120,000 per bag, Mandalay depot stated.
Last year, the sesame prices dropped by over 20 per cent compared with the prices in the previous years due to the COVID-19 negative impacts. Consequently, the growers do not make a large profit this year, said a trader from the Mandalay market.

Typically, Myanmar exports about 80 per cent of sesame production to foreign markets. China is a leading buyer of Myanmar sesame. It is also shipped to markets in Japan, South Korea, China (Taipei), the UK, Germany, the Netherlands, Greece, and Poland, among the EU countries. The EU markets prefer organic-farming sesame seeds from Myanmar, said an official from the Trade Promotion Organization. Japan prefers Myanmar black sesame seeds, cultivated under good agricultural practices (GAP), and purchases them after a quality assessment. Black sesame seeds from Myanmar are also exported to South Korea and Japan. Meanwhile, China buys various coloured sesame seeds from the country. This year, Japan has not purchased Myanmar’s sesame yet.

Sesame is cultivated in the country throughout the year. Magway Region, which has gained a reputation as the oil pot of Myanmar, is the primary producer of sesame seeds. The seeds are also grown in Mandalay and Sagaing regions. Of the cooking oil crops grown in Myanmar, the acreage under sesame seed is the highest, accounting for 51.3 per cent of the overall oil crop plantation. The volume of sesame exports has registered over 96,000 metric tonnes worth $130 million in the financial year 2015-2016, $100,000 tonnes worth $145 million in the FY2016-2017, 120,000 tonnes worth $147 million in the FY2017-2018, 33,900 tonnes valued at $43.8 million in the 2018 mini-budget period, 125,800 tonnes worth $212.5 million in the FY2018-2019 and over 150,000 tonnes of sesame worth $240 million in the previous FY2019-2020. 

Source; The Global New Light of Myanmar

Although the hydropower generation was the largest in annual power production, in 2019-2020 fiscal year, natural gas became the largest at 11,618.21 million kilowatt hours, followed by hydropower at 9,366.35 million kilowatt hours

by ENERGY

According to the Central Statistics Office, 9,366.35 million kilowatt-hours were generated from hydropower in the 2019-2020 fiscal year, compared to hydropower generation, which accounted for the largest annual increase in Myanmar’s electricity generation.  In the 2019-2020 fiscal year, 9,366.35 million kilowatt-hours will be generated from hydropower. 11618.21 million kilowatt hours from natural gas; In the 2018-2019 financial year, 11227.82 million kilowatt hours from hydropower; 9366.56 million kilowatt hours from natural gas; In the 2017-2018 financial year, 11,265.03 million kilowatt hours from hydropower; 7,459.22 million kilowatt-hours from natural gas; In the 2016-2017 fiscal year, 10441.61 million kilowatt hours from hydropower; Natural gas produces 17577.56 million kilowatt hours.

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; According to the Ministry of Power and Energy, LNG has generated 900 megawatts and coal from 120 megawatts for a total of 7,058 megawatts. Hydropower accounts for 46% of total electricity generation; 39% from natural gas; 13% from LNG; One percent is made from solar and two percent from coal. 3181 MW from the 2015-2016 fiscal year; 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.

In the 2018-2019 fiscal year, 11227.82 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 generates 104.73 million kilowatt hours. 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 1.55 million kilowatt hours.

The annual capacity generation 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; Production increased to 228,799 million units in the 2018-2018 fiscal year and 27,300 million units in the 2019-2020 fiscal year. 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

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Infection turns live cattle trade to black market

by TRADING

Chairperson U Soe Naing of the Mandalay Region Cattle Exporters Association said that Chinese traders are constantly purchasing about 1,000 cattle on the black market across Myanmar and China. At present, the black market has been more robust. The legitimate market has halted since late 2020. The illegal market is happening. At present, the border trade was illegally carried out like the trade four years ago.

Following about 10,000 cattle stranded in Muse last year, traders embarked on illegal sales. For legitimate trade, China permits live cattle import only after ensuring the cattle is free from 20 diseases, including Foot and Mouth Disease, along with vaccination certificates, health certificates, and farming registration certificates. Those import criteria do not matter on the black market. Myanmar’s live cattle export is heavily relying on Chinese market due to a good price. However, Myanmar has other external markets such as Laos, Thailand, Malaysia and Bangladesh.

The Ministry of Commerce grants a permit to each company for 100 cattle export, and the permit is valid for three months. The companies can be taken legal actions if they do not sell the cattle during the three months. Live cattle export was allowed in late 2017 to eradicate illegal exports, creating more opportunities for breeders and promoting their interests. Myanmar shipped US$360 million worth of animal products, including cattle, to the external markets in the financial year 2018-2019. The value of animal product exports dropped by $100 million in the 2019-2020FY as against a year ago, following the negative impacts of the COVID-19.

Source: The Global New Light of Myanmar

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CMP garment exports top $1.4 bln in five months

by MANUFACTURING

Myanmar’s garment export exceeded US$1.4 billion in the first five months (Oct-Feb) of the current financial year 2020-2021, according to the data released by the Ministry of Commerce. 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 starts to resume new orders. 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, they 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. 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. Myanmar’s manufacturing sector is concentrated mainly in garment and textiles produced on the Cutting, Making, and Packaging basis. It contributes to the country’s GDP to a certain extent.

At present, Myanmar’s garment export drastically dropped on the slump in demand by the European Union market. Consequently, some CMP garment factories permanently and temporarily shut down and left thousands of workers unemployed. Myanmar mainly exports CMP garments to markets in Japan and Europe along with the Republic of Korea, China, and the US. The export value of CMP garments was only $850 million in the 2015-2016FY, 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

The $ 130 million Peninsula Yangon Hotel project in Yangon is halted for a year

by HOTEL & TOURISM

Hong Kong and Shanghai Hotels Holdings, which operates high-end luxury Peninsula hotels, announced on May 21 that they would suspend a $ 130 million construction project in Yangon for a year, the Nikkei Asia reported. They have reached an agreement with their partners to suspend the Peninsula Yangon hotel project for 12 months due to the current situation in Myanmar , Clement Cox, chief executive of the Hong Kong Stock Exchange, told shareholders at the company’s annual meeting on May 21.

It is mentioned that they would continue to monitor the situation in Myanmar and hoped to restart the project as soon as the situation stabilized. The project also includes the renovation of the former colonial-style Myanmar Railways headquarters in downtown Yangon into an 88-room Peninsula Hotel. Hongkong and Shanghai Hotels own 70 percent of the project, with the remaining 30 percent owned by two listed companies, Serge Pun & Associates, one of Myanmar’s leading private conglomerates, and Yoma Strategic Investments and First Myanmar Investment.

Among the projects of the well-known company named the Yoma Central, Peninsula project is included. A company spokesman said on May 21 that the Yoma Central project had been suspended and that all parties concerned were still determined to restart the project. Linn Mu-Holland, director of Group Corporate Affairs at the Hong Kong company, said the project was suspended last April. It is also mentioned that it was too early to say in detail what conditions needed to restart the project and that safety is a top priority. Until August last year, the company was expected to complete the project by 2022. The company’s annual report, released in March, said it was “extremely concerned” about the current violence and instability and would continue to assess the need for immediate response to long-term decisions on the project.

Source: Daily Eleven

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Rice export to China through Muse border checkpoint plummets

by TRADING

Myanmar’s rice export to China through the Muse border checkpoint has plummeted recently, said Vice-Chair U Min Thein of the Muse Rice Wholesale Centre. The drop was due to the closure of the Man Wein checkpoint, which is the major place of trading of rice and broken rice between Myanmar and China following the outbreak of COVID-19 positive cases. With the Man Wein checkpoint closing, export items, including rice and broken rice, are being traded through China via the Kyin San Kyawt checkpoint. Earlier, Myanmar exported about 30,000 bags of rice and broken rice to China daily. But now, only about 10,000 bags have been shipped, he added. Previously, about 70 truckloads of rice and broken rice were traded daily through Man Wein checkpoint. Now, only 24 truckloads are traded. The export has dropped one third. Though three truckloads used to go earlier, only one truckload would go now. Earlier, about 30,000 bags of rice and broken rice were traded through the Man Wein checkpoint.

In contrast, now only 10,000 bags are being traded through Kyin San Kyawt checkpoint. Currently, the price of Muse market is 117 Yuans for a bag of broken rice, 128 Yuans for Nga Sein, 129 Yuans for Thuka and 137 Yuans for Shin Tone, according to the Muse Rice Wholesale Centre. The Man Wein checkpoint has been closed for over one month because of the outbreak of COVID-19. According to Muse 105th Trade Zone of the Trade Department under the Ministry of Commerce, China has no plan to reopen it yet. With the declining number of COVID-19 positive patients in the Kyalgaung area, the lockdown restrictions imposed on the Kyalgaung area were lifted starting from 4 May. But, the observation is still going on for another three more months. As a result, the Man Wein checkpoint has not been planned to reopen, according to the announcement of the Muse 105th Mile Trade Zone, the Trade Department on 5 May.

In addition, in coordination with the Shweli Foreign Relations Department, the Man Wein crossing has not been reopened yet. It will reopen only after having the detailed plan, according to the statement. The relevant traders will also be informed if there is an official notification from China to reopen the border. Moreover, according to the Muse Rice Wholesale Centre, China’s Customs authorities granted rice export licenses to 47 Myanmar companies on 26 February 2021. This year, the Chinese government has allowed more rice export licenses to more companies. So, the volume of rice export will increase this year compared to that of the previous year. During the first three months of the current financial year, Myanmar exported over 720,000 tonnes of rice and broken rice worth over US$ 275 million, according to Myanmar Rice Federation. However, Myanmar has expected to export only 2 million tonnes of rice in this FY because the weather changes have affected irrigation water. Consequently, summer paddy cultivation will have to be reduced, said U Ye Min Aung, the Chairman of the Myanmar Rice Federation. Myanmar generated over $ 800 million from rice export in the previous FY — 2019-2020 ending 30 September with an estimated volume of over 2.5 million tonnes.

Source: The Global New Light of Myanmar