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The prices of rice in the export market slightly decreased in October owing to the coronavirus impacts, as per data of Myanmar Rice Federation (MRF). In October, the export prices of white rice (low quality), broken rice and parboiled rice slipped compared to September’s rate. The prices moved in the range of US$330-415 per tonne of white rice depending on quality, $220-310 per tonne of broken rice and $440-485 per tonne of parboiled rice, indicating a slight decrease compared with the previous months.

Consequently, the price of low-quality rice, which is primarily exported to foreign countries, also dropped by K1,000-3,000 against last month’s rate in the domestic market. Following the coronavirus resurgence in Myanmar, high-quality rice (Shwebo Pawsan variety) was highly demanded in the domestic market. The domestic retail market in October saw a significant rise to K57,000 per 108-pound bag from K50,000 registered in September.

Ayeyawady Pawsan variety was priced K36,000 per 108-pound-bag in the domestic market last month, while low-quality rice fetched K21,500-23,700, MRF data showed. The export price of Myanmar’s rice is relatively lower than in other Asian countries such as Thailand and Viet Nam. Yet, the prices are higher than those market prices of India and Pakistan, MRF’s data showed. Next, the Ministry of Commerce, Myanmar Inspection and Testing Service (MITS), the authorized organization of the State and MRF implemented rice reserve scheme on 30 April. The state’s emergency rice reserve is to ensure food security, keep the price stable in the domestic market, continue to export them regularly and lessen the worries of the consumers during the COVID-19.

There is self-sufficiency in the domestic market, and people do not need to concern over the shortage of rice. A total of 321,771 bags (108 pounds per bag) from reserved rice have been sold between 10 July and 26 October 2020. MRF will sell up to 1 million bags of reserved rice. About 678,229 bags are left to sell, MRF data showed. Additionally, the volume of rice and broken rice exported between 1 and 16 October in the current financial year 2020-2021 reached 35,637 tonnes, worth over US$14 million, as per MRF’s data.

MRF expected to ship 2.4 million tonnes of rice, and broken rice in the last FY ended 30 September 2020. The country surpassed the export target, sending over 426,611 metric tons to neighbouring countries through border trade and over 2.15 million tonnes of rice and broken to foreign trade partners via maritime trade, totalling over 2.58 million tonnes. A surge in rice shipping through sea trade was contributed to meeting year’s export target, MRF stated. Myanmar targets to export 4 million tonnes of rice and broken rice in the current financial year 2020-2021, stated U Aung Than Oo, vice president of Myanmar Rice Federation (MRF). Myanmar shipped 3.6 million tonnes of rice in the FY2017-2018, which was an all-time record in rice exports. The export volume plunged to 2.3 million tonnes, in the FY2018-2019. 

Source: The Global New Light of Myanmar

THE Department of Agriculture is enticing watermelon growers to turn to other crops which have market certainty, said U Win Hlaing Oo, head of Sagaing Region Department of Agriculture. The number of watermelon growers has dropped by 75 per cent due to price instability and transport difficulties. They are encouraging them to switch to other crops. As there is no contract farming of watermelon, the growers will definitely suffer a loss when the price drastically plunges.

The Agriculture Department is providing necessary technical assistance to the growers, yet it urges them to choose other crops which have the potential market. The watermelon cultivation is lucrative. However, large investment capital, market uncertainty and high quality standards of products set by the traders are posing difficulties to the growers, industry sources said. At present, China’s tightened border control amid the coronavirus pandemic is causing transport problems. With price instability and market uncertainty, coupled with the high quality standards, the growers have to struggle very hard. It is said that watermelon production has fallen by 60 per cent since the outbreak of COVID-19.

The Agriculture Department is demonstrating how to grow high yield wheat in Paukin area, in coordination with the Korea International Cooperation Agency. Their department is encouraging the growers to cultivate wheat while some are also planning to grow black bean and pigeon peas this winter. Watermelon prices jumped from around 1,300 to over 4,000 Yuan per tonne this year and about 20 to 30 truckloads of watermelons are daily sent to China at present.

Source: The Global New Light of Myanmar

The value of Myanmar’s bilateral trade with neighbouring country Thailand in maritime trade and border trade was estimated at US$18.865 billion in the past four financial years, the statistics issued by the Central Statistical Organization under the Ministry of Planning, Finance and Industry indicated. The ministry reported that exports surpassed imports in trade with Thailand in the past four years, with exports reaching over $10.731 billion and imports valued at over $8.13 billion. Between 2016-2017FY and 2019-2020 (as of August), Thailand has been Myanmar’s largest trade partner among the ASEAN states, followed by Singapore and Malaysia.

Thailand accounted for 14.45 pc of total trade in 2016-2017FY with an estimated trade value of US$4.6 billion, 15.54 pc in 2017-2018FY with a trade value of $5.57 billion, 15.55 pc in 2018-2019FY with $5.46 billion and 13.92 pc in 2019-2020FY (Oct-April) with $3.15 billion respectively. Exports of natural gas from Taninthayi Region has contributed to the enormous increase in border trade with Thailand in the previous year. This year, corn exports to Thailand rose significantly compared with the earlier years, the Ministry of Commerce stated. Myanmar primarily exports natural gas, fishery products, coal, tin concentrate (SN 71.58 per cent), coconut (fresh and dry), beans, corns, bamboo shoots, sesame seeds, garment, footwear, plywood and veneer, broken rice and other commodities to Thailand. It imports capital goods such as machinery, raw industrial goods such as cement and fertilizers, and consumer goods such as cosmetics, edible vegetable oil and food products from the neighbouring country.

Myanmar is carrying out border trade with the neighbouring country Thailand through Tachilek, Myawady, Myeik, Mawtaung, Hteekhee, Kawthoung and Maese border areas respectively. Among them, Hteekhee performed the most extensive trade in border trade with Thailand, followed by Myawady. Nevertheless, the surge in coronavirus cases in Myanmar led Thailand to close the border areas. Consequently, the trade via land border sharply fell in the current FY 2020-2021. Apart from its leading trade partner China, Myanmar’s external trade was mostly carried out with the regional trade partners. Trade with countries in the European Union, however, remained uncompetitive, compared with regional trade partners. 

Source: The Global New Light of Myanmar