Price gaps still widen in paddy, edible oil, gold, currency markets

Just business entities in the fuel oil sector comply with the reference price set by the institution concerned, so the fuel consumers are delighted with that. Furthermore, those engaged in the forex market and in the gold market are found to have weak compliance at the reference prices. The consumers are bearing the burden of those extra costs. The reference price was set for fuel oil and edible oil depending on the market price and foreign exchange rate. “I could buy the fuel oil according to the daily wholesale and retail reference prices,” Ko Than Win, a taxi driver, told the Global New Light of Myanmar (GNLM).

The fuel oil wholesale reference prices stood at K1,867 per litre of Octane 92, K1,941 for Octane 95 and K2,291 for diesel. The retail prices were K1,965 per litre of Octane 92, K2,041 for Octane 95 and K2,410 for diesel. Those reference prices were effective on 2-4 December and the fuel buyers were able to reach them. Next, the wholesale reference price of edible oil for the Yangon market is released on a weekly basis on Mondays depending on the foreign palm oil market conditions. However, the consumers find it hard to buy them at the reference prices, said a trader.

Every month, approximately 30,000 tonnes of edible oil are imported from the foreign markets and mobile market trucks offer them at the retail reference price. Nonetheless, the sales quota volume is extremely low. That being so, there is a gap of thousand Kyats between the reference price and the market price. In August 2022, there was a price difference of K4,000 per viss. On 3 December, it narrowed to K1,200 per viss of palm oil, according to the Yangon edible oil market. Likewise, the institutions concerned set the reference prices for exchange rate and daily gold price. Weak culture of compliance by traders in those industries resulted in exorbitant market prices compared to the reference prices.

Moreover, the floor price for 2022 monsoon paddy (low-grade) and 2023 summer paddy (low-grade) was set at K630,000 per 100 baskets (46 pounds per basket), according to the leading committee for the Protection and Promotion of the Rights and Interests of Farmers. Actually, the market price hit K1 million to K1.3 million per 100 baskets (50 pounds per basket), said a rice dealer from Wakema Township.

The committee set the floor price for paddy at K540,000 per 100 baskets for 2021 monsoon paddy and 2022 summer paddy. They were sold at K600,000 per 100 baskets. Unlike reference price, the traders are notified of purchasing the paddy at floor price if the market price falls below that. The farmers received higher prices than the floor price in the past two years. Next, the importers and the traders who keep the stocks in hands of the certain goods earn a great profit amid the weak compliance. A buyer called for enforcement for the regulatory compliance so that they can enjoy the reference prices of those certain commodities and goods.

Source: The Global New Light of Myanmar

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Myanmar ships approximately 110,000 tonnes of rice to Bangladesh under G-to-G pact

Myanmar has conveyed about 110,000 tonnes of rice to Bangladesh under the government-to-government pact, according to the Ministry of Commerce. Myanmar and Bangladesh inked a Memorandum of Understanding (MoU) on rice trade in September this year. According to this MoU, Bangladesh has agreed to buy 250,000 tonnes of white rice and 50,000 tonnes of parboiled rice from Myanmar between 2022 and 2027.

Under the MoU, Bangladesh’s Directorate General of Food and Myanmar Rice Federation signed a sales contract for 200,000 tonnes of Myanmar’s white rice to be exported to Bangladesh. As per the sales contract, Myanmar has shipped about 110,000 tonnes of white rice to Bangladesh as of 28 November 2022. Furthermore, over 2,000 tonnes of rice are being loaded onto the ship for now. The remaining will be delivered before the deadline.

As per the MoU between Myanmar and Bangladesh on the rice trade, 48 companies, under the supervision of the Myanmar Rice Federation, are to export 200,000 tonnes of rice to Bangladesh with Chinese yuan payment between October 2022 and January 2023. Following the contract, white rice (ATAP) GPCT Broken STX variety will be delivered. The FOB prices were 2.78856 Yuan per kilo and 2788.56 Yuan per tonne. The Export/Import division of the Trade Department issued 42 export licences worth over 534 million Yuan for 41 companies to convey 191,700 tonnes of rice to Bangladesh.

Since 7 September 2017, Myanmar and Bangladesh have engaged in rice trade under the government-to-government pact. That MoU stated that Bangladesh has agreed to buy Myanmar’s white rice (250,000 tonnes) and parboiled rice (50,000) tonnes between 2017 and September 2022. Bangladesh’s Directorate General of Food and MRF signed the sales contracts as per the MoU and Myanmar sent 100,000 tonnes of rice to Bangladesh each in 2017 for the first time and 2021 for the second time, as per the sales contract.

Source: The Global New Light of Myanmar

54 container ships scheduled to arrive at Yangon Port in Dec

A total of 54 container ships carrying many containers are slated to enter Yangon Port in December, according to Myanmar Port Authority. This month, nine cargo ships run by Sealand Maersk Asia, seven each by New Golden Sea (Cosco) and Samudera Shipping Line, five by MSC Line, four by SITC Line, three each by Ever Green Line, IAL, PIL, RCL and X-Press Feeder, two each by Bay Line, BLPL and T12 Container Line and one by Land and Sea Line will enter Yangon Port, totalling 54 cargo ships. Last November, 51 cargo ships arrived at Yangon Port.

Therefore, the number of cargo ships increased by three from last month’s number. Yangon Port handled a total of 620 cargo ships this year, according to Myanmar Port Authority. The number of cargo ships entering Yangon Port stands at 49 in January, 48 in February, 50 in March, 52 in April, 54 in May, 53 in June, 49 in July, 55 each in August and September, 50 in October and 51 in November respectively. From May 2021, the arrival of ships at terminals in Yangon has increased again.

To fulfil the seaborne trade requirements, three new cargo ships by Maersk Line Myanmar (Sealand Maersk) started to run in 2021. Myanmar Port Authority and Yangon inner terminals are providing services to ensure the fast and reliable cargo handling and withdrawal of the containers. Earlier, the larger ships had draft problems preventing their sailing on the Yangon River. The draft extension is up to 10 metres with the new navigation channel accessing the inner Yangon River and the international ocean liners can access the inner port for now.

Source: The Global New Light of Myanmar

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Covid restrictions to be eased for travellers to Myanmar via int’l flights

The rules and regulations for COVID-19 will be relaxed for travellers to Myanmar via international flights starting from 1 December, according to the Ministry of Health.
The local infection rate has declined and the positivity rate has reached below one per cent for 14 consecutive days, it is learnt.
Before, the travellers were required to show COVID-19 vaccination record cards as proof of being fully vaccinated or the RT-PCR negative test results within 48 hours. And then they would have to take the RDT test at the airport.
Now, the restrictions to take tests with RDT will be relaxed for travellers to Myanmar starting from the morning of 1 December, according to the announcement of the Health Ministry.
The details will be published in “Public Health Requirements for Travellers who Wish to Enter Myanmar through International Commercial Flights” on 1 December.
In addition, the public health requirements for travellers by relief flights and travellers via land borders will remain the same as the requirements were released on 8 October 2022, it is learnt.

Source: Global New Light of Myanmar

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Myanmar foreign trade surges to over $21.46 bln as of 18 Nov

MYANMAR’s external trade between 1 April and 18 November of the current financial year 2022-2023 tremendously edged up to US$21.468 billion, reflecting a significant increase of $3.9 billion from the year-ago period, according to the Ministry of Commerce. The figures surged from $17.55 billion in the corresponding period last year.

Myanmar’s export was worth over $10.427 billion whereas the country’s import was valued at $11 billion over the past seven and a half months. The border trade was up by $89.595 million, while the seaborne trade registered a significant rise of $3.8 billion. Myanmar exports agricultural produce, 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 more on the agricultural and manufacturing sectors. The Ministry of Commerce is focusing on reducing trade deficit but export promotion, import substitution and market diversification. The external trade stood at $15.5 billion in the past mini-budget 2021-2022 (Oct-March) period and $29.58 billion in the 2020-2021 FY, as per the Commerce Ministry’s statistics.

Source: The Global New Light of Myanmar

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Singapore tops FDI ranking in Myanmar in past seven months

Fourteen Singapore-listed enterprises pumped in foreign investments of US$1.154 billion into Myanmar in the past seven months (April-Oct) of the current financial year 2022-2023, the Directorate of Investment and Company Administration’s statistics showed. Singapore companies mainly put investments into urban development, real estate, power and manufacturing sectors. Hong Kong SAR stood as the second largest investors this FY with an estimated capital over $163 million by 11 enterprises and the existing ones.

China is ranked third in the investment line-up with more than $90 million from 22 businesses and the existing ones. One enterprise each from Belize, China (Taipei), the Republic of Korea and Japan also made investments in the past seven months respectively. The existing enterprises from China (Taipei), China, Hong Kong SAR, the Republic of Korea, India, Bangladesh and Seychelles also increased the investments. Myanmar attracted foreign direct investments of $1.45 billion from 52 enterprises during April-October period. Majority of the investments brought into the manufacturing sector. Agriculture sector drew $3.5 million from two projects.

Power sector received $817 million from 10 projects, while one enterprise put $29 million in the real estate sector and two other foreign enterprises made an investment of $413.068 million in the service sector respectively. The mining sector earned $7 million from one project, while one enterprise also put investments of less than a million into the hotels and tourism sector and some capital expansion of the existing businesses are also seen. Additionally, the livestock and fisheries sector saw a capital expansion of $1.545 million.

Myanmar has drawn foreign direct investment of more than $647.127 million from 49 enterprises in the past mini-budget period (October 2021-March 2022), according to the statistics released by the DICA. Singapore stood as the largest foreign investor in Myanmar in the previous years, pulling in the FDI of  $1.85 billion in the FY 2019-2020, $2.4 billion in the FY 2018-2019, $724.4 million in the mini-budget period (April-September, 2018), $2.16 billion in the 2017-2018 FY, $3.8 billion in the 2016-2017 FY, $4.25 billion in the 2015-2016 FY, $4.29 billion in the 2014-2015 FY, $2.3 billion in the 2013-2014 FY and $418 million in the 2012-2013 FY respectively. Additionally, Singapore emerged as the second largest foreign investor in the Thilawa Special Economic Zone, after a top investor Japan.

Source: The Global New Light of Myanmar

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Myanmar daily conveys seafood from Taninthayi Region to Thailand

Myanmar daily delivers clam, mollusc, snail and scorpion prawns produced by the Taninthayi Region to Thailand, according to the Ministry of Commerce. Seafood is popular in Thailand and it plays a major role in Thai cuisine. Tourists visiting Thailand also enjoy seafood. Therefore, the demand for popular Myanmar Shak (aka) clam, mollusc, snail and scorpion prawns is on the rise.

Myanmar sends over ten four-wheel truckloads of clams from Taninthayi to Thailand through the Mawtaung border and it fetches 91.94 Thai Baht per kilogramme. The clams are offered at a high price among the seafood. It is easy to digest. People enjoy clams by boiling, cooking or roasting them. Additionally, snails are also a popular food among seafood in the Myeik area, Taninthayi Region.

People cook sea snails in different cuisines including one with coconut milk. The snails are priced at 2.5 Thai Baht per kg. Approximately 300-500 kg of snails is daily delivered to Thailand through the Mawtaung border with three to five trucks. Furthermore, king prawn is highly demanded. The prevailing price of king prawns is 1,121.85 Thai Baht per kg. About 500 to 1,000 kilogrammes of scorpion prawns are exported to Thailand with eight to 12 four-wheel trucks every day. 

Source: The Global New Light of Myanmar

Weekly market update of dry groceries

During the week ending 22 November, Yangon’s Bayint Naung Wholesale Market saw an entry of newly harvested monsoon onions and Chinese onions and old summer onions. Chinese onions flowed into the markets at a cheaper rate. Although the wholesale reference price of palm oil increased, the market price and the delivery order price declined. The prices of black gram and pigeon peas also decreased.
Onion
On 22 November, 120,000 visses of onions from various regions flowed into the Yangon market.
The prices of old summer onions stood at K3,000-K4,400 per viss of onions from the Seikphyu area, K3,800-K4,800 from the Myingyan area and K2,200-4,200 from the Myittha area, whereas Chinese onions moved in the range between K2,600 and K3,400 per viss.
Garlic
The wholesale prices of the Kyukok garlic variety were K3,325 per viss on 22 November, while the local garlic from Shan State (Aungban area) moved in the range between K2,900-K3,900 per viss.
Potato
New Chinese potatoes entered the Yangon markets at cheaper rates, with K1,900 per viss of Chinese potatoes. Old Chinese potatoes were priced at K2,400 per viss while the local potato from Shan State (Aungban area) was valued at K1,900-K2,150 per viss.
Chilli pepper
Monsoon chilli pepper price dipped. The Yangon market saw a large supply of chilli peppers from various regions.
On 22 November, the wholesale prices of chilli peppers were K17,000-K17,300 per viss of Shan long chilli pepper, K16,500 for the Indian Moehtaung variety. The bell pepper from Shan State fetched K21,000 per viss. The long chilli peppers processed at cold storage were priced at K21,000 per viss and the bell peppers were valued at K31,000 per viss.
Palm oil
The wholesale reference price of palm oil in the Yangon Region this week was up by K30 per viss compared to the last week’s price. The reference price for a week from 21 to 27 November was set at K4,380 per viss.
Consequently, the wholesale prices of palm oil barrels were K5,600-K5,750 per viss on 22 November.
Rice
On 22 November, glutinous rice prices were K95,000-K98,000 per viss. The prices of high-grade Pawsan stood at K85,000-K94,000 per bag from the Shwebo area, K62,000-K67,000 from Pathein/Myaungmya areas and K58,000-K62,000 from the Pyapon area, while the prices of other rice varieties were K49,000 of short-mature rice (90 days), K46,000 for rice grown under the intercropping system and K42,000-K43,000 for monsoon low-grade rice.
Pulses
The prices of various pulses stood at over K1,726,000 per tonne of black gram (Fair Average Quality/RC), K2,036,000 per tonne of black gram (Special Quality/RC), K1,895,000 per tonne of pigeon pea (red gram) RC and K4,100-K4,300 per viss of chickpea on 22 November.

Source: The Global New Light of Myanmar

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Myanmar registers trade deficit of $678.226 mln as of 11 November

Myanmar’s trade gap widened to US$678.226 million between 1 April and 11 November of the current financial year 2022-2023 compared to the year-ago period. Higher exports and lower imports resulted in a trade surplus of $315.991 million in the corresponding period of the 2021-2022FY, according to data provided by the Ministry of Commerce. While exports were estimated at $10.072 billion, imports were valued relatively low at $10.751 billion over the past seven months.

Compared to the FY2021-2022, exports showed an increase of over $1.376 billion, while import value was up by $2.37 billion. Myanmar’s maritime trade value edged up to $16 billion over the past seven months from $12.29 billion recorded in the same period last year yet the country witnessed a small drop of $62.637 million in border trade as cross-border trade with the main trade partner China has not returned to normal amid the strict virus policy.

Myanmar exports agricultural produce, 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 more 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 import substitution. 

Source: The Global New Light of Myanmar

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MoC issues export licence for rice to be shipped to Bangladesh under MoU

The Ministry of Commerce has granted an export licence for 191,700 tonnes of rice that will be shipped to Bangladesh according to the agreement between the two countries. As per the Memorandum of Understanding between Myanmar and Bangladesh on the rice trade, 48 companies, under the supervision of the Myanmar Rice Federation, are to export 200,000 tonnes of rice to Bangladesh with Chinese yuan payment between October 2022 and January 2023. Following the contract, white rice (ATAP) GPCT Broken STX variety will be delivered.

The FOB prices were 2.78856 Yuan per kilogramme and 2788.56 Yuan per tonne. The Export/Import division of the Trade Department issued over 534 million Yuan worth 42 export licences for 41 companies to convey 191,700 tonnes of rice to Bangladesh. Myanmar and Bangladesh inked a Memorandum of Understanding (MoU) on rice trade in September this year. According to this MoU, Bangladesh has agreed to buy 250,000 tonnes of white rice and 50,000 tonnes of parboiled rice from Myanmar between 2022 and 2027. Under the MoU, Bangladesh’s Directorate General of Food and MRF signed a sales contract for 200,000 tonnes of Myanmar’s white rice to be exported to Bangladesh.

As per the sales contract, Myanmar has shipped over 20,000 tonnes of white rice to Bangladesh till 31 October 2022. The remaining will be delivered before the deadline. Since 7 September 2017, Myanmar and Bangladesh have engaged in rice trade under the government-to-government pact. That MoU stated that Bangladesh has agreed to buy Myanmar’s white rice (250,000 tonnes) and parboiled rice (50,000) tonnes between 2017 and September 2022. Bangladesh’s Directorate General of Food and MRF signed the sales contracts as per the MoU and Myanmar sent 100,000 tonnes of rice to Bangladesh each in 2017 for the first time and 2021 for the second time, as per the sales contract. 

Source: The Global New Light of Myanmar