Posts in category: ECONOMY

INDONESIA is the largest importer of Myanmar’s rice, with over 210,000 tonnes in the first half of the
current financial year 2024-2025, beginning 1 April, according to the Myanmar Rice Federation (MRF).
Myanmar conveyed over 217,600 tonnes of rice and broken rice to Indonesia, over 209,000 tonnes to China, over 162,900 tonnes to Belgium, over 72,600 tonnes to the Philippines, over 27,100 to Cameroon, over 26,500 to Mozambique, over 19,500 to Spain, 17,500 to the Netherlands, over 13,900 to Ivory Coast, over 13,300 to Italy and over 12,300 to Poland.

Myanmar’s rice and broken rice exports to foreign countries reached over 930,000 tonnes worth
US$458 million in H1. The federation aims to achieve 2.5 million tonnes of rice exports in the 2024-2025
financial year (April-March). The Ministry of Commerce has been cooperating with departments and institutions concerned to achieve export targets and beyond depending on the supply volume of rice, broken rice, pulses, corn, rubber and fisheries from the respective companies.

Ministry of Commerce is working together with the Union of Myanmar Federation of Chambers of
Commerce and Industry, Myanmar Rice Federation, Myanmar Pulses, Beans, Maize and Sesame Seeds
Merchants Association, Myanmar Garment Manufacturers Association, Myanmar Industries Association,
Myanmar Rubber Planters and Producers Association, Myanmar Fisheries Products Processors and Exporters Association to meet monthly export targets and facilitate exports.

The federation is projected to achieve 2.5 million tonnes of rice export in the FY 2023-2024, generating one billion dollars. However, rice exports fell short of the target with 1.6 million tonnes worth $845 million. The Central Bank of Myanmar’s monetary policy to control export earnings impeded rice exports, hurting exporters financially. The El Nino weather condition also hampered rice export, the chairperson of the Myanmar Rice Federation said. Myanmar exported 2,261,203 tonnes of rice and broken rice to foreign trade partners in the past 2022-2023 FY (April-March), with an estimated value of $853.472 million.

THE Central Bank of Myanmar (CBM) announced on 23 October that it would sell 20 million Thai baht to
importers. After that, it injected US$2.5 million and 16.5 million baht into the financial market on that day. It sold over $7.5 million and 150 million baht on 22 October, $2.2 million and 1.5 million yuan on 21 October after it announced to sell $35 million for those engaged in the fuel oil and edible oil sectors as per its notification dated 20 October.

CBM injected $6 million and 200 million baht on 15 October, $730,000 on 11 October, $12.4 million and
38.7 million baht on 10 October, 660,000 yuan on 9 October and over 10 million baht on 7 October into the private sector. CBM also pumped $13.1 million and 288,000 yuan on 4 October, $780,000, 1.2 million yuan and one million baht on 3 October and over 1.2 million yuan and 10.2 million baht into the financial market on 2 October.

CBM also sold over $76 million, 86 million baht and 4.8 million yuan in September. Moreover, CBM sold
over $190 million, 19 million yuan and 79 million baht in August. CBM aims to curb the instability in the foreign exchange market and the currency devaluation. According to CBM’s notification on 15 March, it has been joining hands with law enforcement agencies to combat and prosecute those who attempt to manipulate the currency market under the existing laws. CBM allowed authorized dealers (private banks) to operate online foreign exchange trading freely as per the market rate depending on supply and demand factors, starting from 5 December 2023.

Source: The Global New Light of Myanmar

The Central Bank of Myanmar (CBM) sold US$111 million, 19 million yuan and 79 million baht in the past three weeks.
CBM’s notification issued on 14 August revealed a contribution of $100 million towards the fuel oil sector. CBM announced on 9 August that it would sell $6 million, five million yuan and 10 million baht into edible oil, fuel oil and pharmaceutical sectors through online foreign exchange trading platforms in the coming weeks.
CBM sold $5 million and five million yuan for fuel oil, edible oil and pharmaceutical sectors on 2 August, after selling 69 million baht and nine million yuan for those importing edible oil, fertilizer, pharmaceuticals and medical devices on 1 August.
CBM injected $15.4 million and five million yuan into the foreign exchange market in July with a view to curbing the instability in the foreign exchange market and stopping the currency devaluation. According to CBM’s notification on 15 March, it has been joining hands with law enforcement agencies to combat and prosecute those who attempt to manipulate the currency market under the existing laws. CBM allowed authorized dealers (private banks) to operate online foreign exchange trading freely as per the market rate depending on supply and demand, starting from 5 December 2023.

Source: The Global New Light of Myanmar

Myanmar Rice Federation (MRF) will store up to one million bags of rice, including Pawsan rice varieties, for the State’s rice reserve.

The federation will add Pawsan rice in addition to Aemahta rice into the rice reserves. A bag weighs 108 pounds.

“Even Pawsan rice has been planned for rice reserve in the coming paddy season. This move is to stabilize the market and facilitate consumers, especially low-income families. After MRF stockpiles them, the related departments and individuals will resell them to the employees. At present, there is adequate distribution of Aemahta rice,” U Ye Min Aung, president of MRF.

The Ministry of Commerce and MRF decided to add more rice stocks to the rice reserve scheme with a view to stabilizing the market and beefing up stocks for low-income households.

According to the strategic plan of the rice reserve by the Ministry of Commerce and MRF, one to three bags are designated for rice reserve per tonne of rice export.

Source: The Global New Light of Myanmar

Myanmar conveyed 544.31 metric tons of honey valued at US$0.816 million in Q1 (April-June) of the current financial year 2024-2025, according to the Apiculture Division under the Livestock Breeding and Veterinary Department.
The seaborne honey export hit 517.31 tonnes, while the border posts registered 27 tonnes of honey exports in the past three months.
Myanmar’s honey mostly went to Japan, with 335.31 tonnes worth $502,965, while 0.5 tonne worth $750 were exported to South Korea, 181.5 tonnes worth $272,250 to Thailand, and 27 tonnes worth $40,500 to China.
Myanmar primarily exports honey to China, Japan, South Korea, Thailand, the US and Singapore. Myanmar delivered over 2,200 metric tons of honey to foreign trade partners in the last FY 2023-2024 (April-March), the Apiculture Division’s data showed.
Sagaing and Mandalay regions are the leading producers of Myanmar’s honey. Myanmar’s beekeeping businesses are also found in Yangon, Bago, and Magway regions, as well as Kachin, Kayah, Kayin, and Shan states. Myanmar produces sesame honey, jujube honey, Niger honey, sunflower honey, lychee honey and flower honey.
Myanmar’s honey production is estimated at over 4,000 metric tons annually. Sixty per cent went to foreign markets, while the remaining was designated for domestic consumption. Honey is utilized as a traditional medicine in the country.
There are some state-owned beekeeping stations with 6,200 beehives in 31 townships and over 950 private beekeeping businesses operating with nearly 200,000 beehives.
Moreover, two million acres of crops yearly contribute to bee pollination every year. The beekeeping businesses near the crop fields contribute to the successful yield of the crop as well as quality bee production.

Source: The Global New Light of Myanmar

All business entities must sign a letter of commitment that they are aware of export/import news bulletins and will comply with export and import rules and regulations, the Union of Myanmar Federation of Chambers of Commerce and Industry notified on 25 June.
The Trade Department declared that certain types of goods are allowed to be stored in customs warehousing according to the export and import news bulletin of 2/2024.
The Trade Department warned the exporters and importers of penalties for non-compliance with the Export and Import Law, directives and guidelines starting from 1 July 2024. It informed them to seek licences first as pre-arrival documentation for all types of shipment by air and sea, according to the export and import news bulletin 3/2024 of the Trade Department.
Regarding those statements, companies engaged in export and import activities are called to meet and sign the commitment letter that they are bound to comply with rules and regulations.
Only the signees will be considered in import licensing. Therefore, the directors and representatives of the companies that have not signed it yet are asked to proceed to signing at the Trade Department in Nay Pyi Taw and the nearest export and import offices (Yangon, Mandalay) and MIC (One Stop Services).
Director-level representatives of the companies must sign in the designated form that they are aware of news bulletins and will comply with them, and send it to the Export-Import Division of the Trade Department through contact number 09 765595406 and email dottradepolicy1@gmail.com and to the UMFCCI via 01 2314344-49 Ext (464) and email ma@umfcci.com.mm.

Source: The Global New Light of Myanmar

According to reports, a total of 5,400 tonnes of maize were exported from Min Htet Min Port (MHM), along with 2,700 tonnes from Shweme Jetty (SMJ) and 4,850 tonnes of rice from Wilmar International Port Terminal. This export initiative, conducted in collaboration between the Ministry of Commerce and the Union of Myanmar Federation of Chambers of Commerce and Industry (UMFCCI), aims to bolster the country’s economy.
Additionally, on 15 May, further exports included 71,900 tonnes of maize and 6,000 tonnes of rice from Sule Port Wharves (SPW), 53,500 tonnes of maize from Myanmar Industrial Port (MIP), 58,400 tonnes and 12,500 tonnes of rice from Ahlon International Port Terminal (AIPT), 29,500 tonnes of maize from The Myanmar Terminal-TMT, 5,400 tonnes of maize from Min Htet Min Port (MHM), 11,000 tonnes from Yangon International Gateway Terminal (YIGT), and 2,700 tonnes of maize from Myanmar Five Star Line (MFSL). These exports are set to continue.

Source: The Global New Light of Myanmar

AFTER the Central Bank of Myanmar vowed an intensified crackdown on those involved in gold and currency market manipulation, the kyat-US dollar exchange rate slowed down in the forex market.

Kyat depreciated at K3,890 against the US dollar on 30 March, and then, the exchange rate dipped to K3,850 on 5 April.

CBM initiated an online trading market in which exporters and importers and private banks are engaged, with a view to developing the foreign currency exchange market and stopping price manipulation. The market exchange rates are officially announced on the online trading platform of the foreign exchange market. Additionally, CBM lets the authorized money changers sell foreign currency as petty cash to those studying abroad, going on a pilgrimage and working abroad, according to the CBM’s notification.

The CBM declared the daily market exchange rates on its official website and the Central Bank of Myanmar Facebook page.

Moreover, the surprise visits are being undertaken at money changers to ensure they abide by the directive issued by the Foreign Exchange Management Law.

Some unscrupulous individuals are attempting to manipulate the market by spreading misinformation from the verbal deal or sparking public concerns with malicious news about the volatile exchange rate. Some are also engaged in transactions without a valid licence, violating the existing laws.

They will face legal action under the Foreign Exchange Management Law. The CBM also informs the people of true information and data released by the departments concerned and authorized money changers.

CBM always states that it is crucial to dispel false news. Upon tips off, the authorities inspect the price speculators, and legal proceedings against them are officially declared, according to the notification released on 30 March.

CBM has been working together with law enforcement agencies to inspect and prosecute those involved in foreign exchange market manipulation, as per its notification released on 15 March.

Kyat weakened to K4,000 against the US dollar at the over-the-counter market on 19 August 2023.

Under Section 9 of the Foreign Exchange Management Law, only those entities holding foreign exchange dealer licences are allowed to deal in foreign currency and traveller’s cheques. Those holding foreign currencies without valid licences and permits will face legal actions under the law, according to the CBM’s notification released on 21 August 2023.

Notification 7/2014 dated 30 September 2014 issued by the Central Bank of Myanmar affirmingly stated that under stanza 15 of the Foreign Exchange Management Law, domestic residents are allowed to keep US$10,000 in maximum or equivalent amount of foreign currencies for six months. If those foreign currencies that have been unused for over six months have to be exchanged in local currency at the market price through authorized dealers or deposited into bank accounts.

Those illegally holding foreign currencies are to face legal actions under the Foreign Exchange Management Law, the CBM warned again.

Source: The Global New Light of Myanmar

Myanmar bagged US$256.44 million from mineral exports as of 8 March in the current financial year 2023-2024, commencing 1 April, according to the Ministry of Commerce.
The mineral exports plunged from $323.366 million recorded in the corresponding period last FY, showing a drop of over $66 million.
The public sector performed mineral exports valued at over $33 million, whereas the private sector saw mineral exports worth over $220 million.
The export items are gems and jewellery, gold, jade, pearl, diamond, lead, tin, tungsten, silver, copper, zinc, charcoal and other minerals.
Myanmar’s external trade with foreign partners reached over $27.758 billion as of 1 March in the current Financial Year 2023-2024, beginning 1 April, comprising exports worth over $13.378 billion and imports worth $14.379 billion. Myanmar’s seaborne trade value crossed over $20.55 billion this FY, while border trade was valued at $7.207 billion, the Ministry of Commerce’s statistics indicated.

Source: The Global New Light of Myanmar

Myanmar exported over 1.48 million tonnes of pulses worth over US$1.256 billion to foreign trade partners in the past 11 months of the current 2023-2024 financial year beginning 1 April, the Ministry of Commerce’s statistics showed.
Myanmar bagged $1.131 billion from pulses exports of over 1.338 million tonnes through maritime route, whereas over 143,119.469 tonnes of pulses worth $124.722 million were sent to the neighbouring countries via land borders between 1 April 2023 and 1 March 2024, totalling $1.256 billion from exports of 1,481,772.586 tonnes.
The value of Myanmar’s pulses exports totalled over US$1.47 billion from over 1.9 million tonnes in the previous FY 2022-2023, the Ministry of Commerce’s statistics indicated.
Myanmar mainly exports black grams, green grams and pigeon peas to foreign markets. Of them, black grams and pigeon peas are primarily shipped to India, while green grams are exported to China and Europe.
India has growing demand and consumption requirements for black grams and pigeon peas. According to a Memorandum of Understanding between Myanmar and India signed on 18 June 2021, India will import 250,000 tonnes of black grams and 100,000 tonnes of pigeon peas (tur) from Myanmar for five consecutive years from 2021-2022 financial year to 2025-2026 FY. This G-to-G pact will not affect the pulses’ annual quota set by India. Myanmar’s exporters are also entitled to deliver the pulses to India under that yearly quota.
The prevailing market prices are K3.065 million per tonne of black grams (urad) and K3.95 million per tonne of pigeon peas (tur), stated the Yangon Region Chambers of Commerce and Industry.
On 5 February, the prices hit a record high of K3.5 million per tonne of black grams and K4.197 million per tonne of pigeon peas.
Myanmar’s black gram output is estimated at 400,000 tonnes per year, whereas pigeon pea production crosses 50,000 tonnes.
The Myanmar Pulses, Beans, Maize and Sesame Seeds Merchants Association stated that black grams, which India primarily purchases, are commonly grown only in Myanmar, whereas pigeon peas, green grams and chickpeas are cultivated in African countries and Australia.

Source: The Global New Light of Myanmar