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Peanut oil price slides tracking peanut price

The prices of peanut and sesame seeds dip owing to the high supply and low demand in the markets. However, the palm oil price showed a slight increase despite oil tankers unloading the palm oil. Although two oil tankers carrying 9,740 tonnes of palm oil docked terminals in Kyimyindine and Thilawa ports on 21 September 2022, the wholesale prices slightly increased in Yangon markets.

The prices stood at K8,200 per viss on 20 September, K7,900-K8,000 on 21 September, K7,200 on 22 September, K7,500 on 23 September and K7,600-K7,700 on 24 September. The reference prices in Yangon were set at K4,730 per viss for a week from 12 to 18 September and K4,690 for a week ending 25 September. During the harvest of peanut and sesame, the prices significantly dropped. The bulk supply from various regions drove the price down to K1,000 per viss of peanuts when both Chinese supply and purchase volume of the local millers were pretty low.

As Yuan value against local currency slides a bit, the price of sesame was down by K20,000 per bag. Approximately 40 ticals of peanut oil are produced if a viss of peanut is milled. A basket of sesame seeds can produce 6.5 viss of sesame oil on the average. The peanut oil prices declined from K13,500-K14,500 per viss on 12 September to K11,000-K12,000 per viss on 25 September. The sesame oil consumption is low in the market so the price remains unchanged at K10,000-K11,000 per viss in the wholesale market.

Source: The Global New Light of Myanmar

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Muse border trade bags more than US$60 million in August

Myanmar’s 105th-mile Muse trade zone for cross-border trade with China accumulated US$60.178 million in August. Exports surpassed imports with exports valued at $37.856 million and $22.322 million worth of imports. Myanmar exported agricultural produce, forest products, fishery products, minerals, finished industrial goods and other goods to China, while capital goods and intermediate goods were imported into the country.

Figures showed $10.992 million, a slump in trade compared to that of July, with a decrease of $1.841 million worth of exports and $9.151 million worth of imports as exports of agricultural produce including kidney bean, green gram, rice bean, various sesame seeds and dried tea leaf declined in August. However, exports grew in the manufacturing and mining sectors. The imports of intermediate goods, capital goods and consumer goods also fell, according to the Muse Trade Zone.

The value of trade was up by $46.468 million compared to the corresponding period last year with an increase in exports worth $36.228 million and imports valued at $10.240 million. Myanmar sent rice, various pulses, onion, cashew nut, natural rubber and other agricultural produce, forest products, fishery products, livestock products, minerals, finished industrial goods and other goods to China through the Muse border trade zone.

Source: The Global New Light of Myanmar

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Trade value at Myawady trade zone exceeds US$171 million in August

The value of trade at the Myawady border trade zone is estimated at US$171.069 million, according to the Ministry of Commerce’s statistics. Myanmar ’s export via the Myawady border to neighbouring country Thailand was valued at $51.221 million and import was worth $120.848 million. Myanmar’s exports through the Myawady border were 1,195 tonnes of broken rice, over 20,165 tonnes of corn, 451 tonnes of black gram, green gram and black-eyed peas, over 6,700 tonnes of onion, 513 tonnes of rubber, 26 tonnes of dried ginger and other goods.

Vehicle and auto parts, machines and equipment, construction materials, petroleum products, fertilizer, plastic raw materials, cotton, pharmaceuticals and other items were also imported through the Myawady border post. The trade value was down by $37.158 million compared to that of the corresponding period last year, with a decrease of $31.596 million in exports and $5.562 million in imports. The export was $8.038 million less and the import $3.121 million more than the trade volume last July, a decrease of $5.17 million in toto in August. Myanmar ships tonnes of corn to Thailand through the Myawady border as Thailand gives green light to corn imports through Mae Sot under zero tariff (with Form-D), between 1 February and 31 August.

Myanmar exported approximately 1.6 million tonnes of corn delivered to Thailand in FY2020-2021. There are seven border posts between Myanmar and Thailand — Tachilek, Myawady, Kawthoung, Hteekhee, Myeik, Mawtaung and Meisei. The majority of the border trade with Thailand is conducted via Hteekhee and Myawady borders. Between 1 April and 9 September of the current financial year 2022-2023, Myanmar’s exports surpassed imports in trade with Thailand via those seven border posts, with exports reaching over $1.594 billion and imports valued at over $712.196 million, totallinag $2.3 billion, the Commerce Ministry’s data showed.

Source: The Global New Light of Myanmar

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Myanmar seaborne trade value grows 32 per cent as of 9 Sept

Myanmar’s seaborne trade with international trade partners showed an uptick of 32 per cent between 1 April and 9 September in the current financial year 2022-2023. The value of maritime trade soared to US$11.5 billion, reflecting a sharp rise of $2.8 billion, according to the Ministry of Commerce. Seaborne trade rose from $8.7 billion during the year-ago period, according to the Ministry of Commerce. While seaborne exports were valued at $5.037 billion, imports were registered at $6.486 billion. Both exports and imports by sea have risen as compared to the year-ago period.

Myanmar’s seaborne trade generated $19.8 billion out of an overall trade value of $29.5 billion in the previous FY 2020-2021, the Ministry of Commerce’s statistics indicated. In September 2022, 55 cargo ships carrying many containers, operated by 14 international shipping liners, were scheduled to enter terminals in Yangon Port, according to a notification of the Myanma Port Authority. Terminals in Yangon Port handled 410 cargo ships in the past eight months. The number of cargo ships entering Yangon Port stood at 49 in January, 48 in February, 50 in March, 52 in April, 54 in May, 53 in June, 49 in July and 55 ships in August respectively.

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 meters with the new navigation channel accessing the inner Yangon River. Yangon inner terminals and the outer Thilawa Port have received larger ships of 30,000 DWT (Deadweight tonnage) after the draft limit was extended up to 10 meters. Myanmar exports agricultural products, fishery products, minerals, livestock, forest products, finished industrial goods, and other products, while it imports capital goods, consumer goods, and raw industrial materials.

Source: The Global New Light of Myanmar

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Imports including consumer goods drop

The value of imports including consumer goods has plummeted, according to the statistics released by the Ministry of Commerce. Between 1 April and 2 September in the current financial year 2022-2023, goods worth $6.266 billion by sea and goods worth $884.948 million were imported into the country. Imports of consumer goods, capital goods, and raw materials by CMP businesses accumulated to US$7.151 billion.

In the corresponding period last FY, Myanmar imported goods worth $5.84 billion from foreign trade partners, with maritime imports valued at $4.614 billion and sea trade worth $1.226 billion. Import value by sea rose over the past five months compared to that of the year-ago period. Yet, import via cross-border trade was down by $341.561 million. The value of imports via land borders is attributed to the depreciation of Kyat against the currencies of neighbouring countries like China and Thailand, importers said. The exchange rate is currently estimated at K90 for a Thai Baht, K490 for Yuan and K3,500 for a US dollar in the local forex market.

Last August, Kyat drastically fell against the foreign currencies. Consequently, the imports were on the verge of suspension, traders stressed. At present, the prices of agricultural inputs such as fertilizer and fuel oil are soaring. Therefore, agricultural machinery and related equipment were exempted from obtaining an import licence from 1 September, the Trade Department under the Ministry of Commerce notified on 31 August. In a bid to support the country’s agricultural development and facilitate the imports of agricultural machinery, 70 HS lines concerning the agricultural machinery and equipment were eased from licensing requirements.

Source: The Global New Light of Myanmar

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Agricultural export value tops over $1.5 bln over five months

The value of agricultural exports amounted to US$1.51 billion between 1 April and 2 September in the current financial year 2022-2023, indicating a small increase of $27.28 million as against the year ago period. The figures topped $1.48 billion in the corresponding period last year. Myanmar agricultural products are exported to China, Thailand, Singapore, Malaysia, the Philippines, Bangladesh, India and countries in Europe and African countries.

The country shipped rice, corn, chili pepper, rubber, mango, various beans and pulses to the external markets through border posts and sea trade. The country requires specific export plans for each agricultural product, as they are currently exported to external markets based upon supply and demand. The G to G pact also ensures a strong market for the farmers. Contract farming systems, involvement of regional and state agriculture departments, exporters, traders, and some grower groups, are required in order to meet production targets, the Agriculture Department stated.

According to a Memorandum of Understanding between Myanmar and India, India will annually import 250,000 tonnes of black gram and 100,000 tonnes of pigeon peas (tur) from Myanmar for five consecutive years from 2021-2022 financial year to 2025-2026 FY. The Commerce Ministry is endeavouring to help farmers deal with challenges such as high input costs, procurement of quality pedigree seeds, high cultivation costs, and erratic weather conditions. Myanmar Rice Federation (MRF) invited rice companies and millers who want to participate in the contract farming system in the coming summer paddy season.

The Ministry of Agriculture, Livestock and Irrigation is supervising to implement contract farming system on 850,000 acres of summer paddy in the 2022-2023 season, provide payment-in-kind (seeds, fertilizer and diesel) instead of cash and the summer paddy growers will be entitled to receive K200,000 worth of payment-in-kind per acre through Agriculture Development Fund. This plan aims to boost the paddy yield through the support of agricultural inputs (fertilizer, seeds and others) and conduct supply chain financing strategy connecting the farmers, millers and companies, according to the MRF’s statement. Myanmar’s agriculture sector is the backbone of the country’s economy and it contributes to over 30 per cent of Gross Domestic Products. The country primarily cultivates paddy, corn, cotton, sugarcane, various pulses and beans.

Source: The Global New Light of Myanmar

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Trade Dept notifies exporters of payment for terminal handling charge, inspection cost, commission from 35% of export earnings

The Trade Department under the Ministry of Commerce has notified on 29 August that exporters have to pay terminal handling charges, inspection costs and commission from 35 per cent of export earnings. They must pay them 35 per cent of export earnings. They do not need to request approval from the Foreign Exchange Supervisory Committee (FESC) regarding this case, according to the committee’s meeting (43/2022). Therefore, the Republic of the Union of Myanmar Federation of Chambers of Commerce and Industry has notified the related associations of the directive of the FESC.

Regarding the relaxation of the procedure, the shipping process is expected to go smoothly. However, as they must pay 35 per cent of export earnings, the amount of dollars they can sell themselves has become lower, the Myanmar Enterprise Solutions posted on its Facebook Page. According to the CBM’s notification dated 5 August 2022, exporters have to convert only 65 per cent of the hard currency they earned into local currency within one working day.

The CBM issued a statement dated 16 August 2022 that exporters can use 35 per cent of export earnings or sell them to authorized dealers (banks) or make remittances to others. Regarding foreign accounts of the exporters at the banks, 65 per cent of earnings must be exchanged for local currency within one working day. Banks must conduct transactions from the remaining 35 per cent for the use of exporters or remittances or selling them onto ADs, and those entities (companies, institutions and individuals) must sell them to the ADs or use themselves within 30 days of earnings. Exporters must seek the approval of the Foreign Exchange Supervisory Committee to carry out cross-border transactions. 

Source: The Global New Light of Myanmar

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Agricultural machinery exempt from applying for import licence

Starting from 1 September 2022, the items related to agricultural machinery included in the HS code lines declared by the Ministry of Commerce are exempted from obtaining an import licence, according to the notification released by the Trade Department under the MoC on 31 August.

In a bid to support the country’s agricultural development and facilitate the imports of agricultural machinery, 70 HS lines concerning the agricultural machinery and equipment were eased from licence requirements from 1 September. Those items can be imported in line with the regulations of the respective departments.

At present, Kyat is depreciating against foreign currencies in the local forex market. The foreign exchange rate stood at K110 for a Thai Baht, K560 for a Chinese Yuan and K4,000 for a dollar. Consequently, imports nearly came to a halt due to the Kyat devaluation, importers stressed. Among the import items, the price of agricultural inputs such as fertilizers is soaring. Additionally, the price of fuel oil used in agricultural machinery is rocketing as well.

Source: The Global New Light of Myanmar

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Over $13 billion earned from overseas trade within 4 & 1/2 months

The Ministry of Commerce stated that the country pocketed over US$13 billion from international trading in four and a half months of the 2022-2023 financial year. Myanmar exported $6537.504 million worth of goods and imported $6,507.207 million worth of goods. The total trade volume from 1 April to 19 August this financial year was $13,044.711 million.

The trade value of the previous year was $10430.457 million. Comparing the same period of the previous two financial years, foreign trade income increased by $2,614.254 million in the 2022-2023FY. According to the MoC statements, the State bags over $16.079 billion of foreign trade value in the six months of the 2021-2022 Mini-Budget period and surpassed the trade income of the same duration in the previous year.

The trade income value of Myanmar from 1 October 2021 to 31 March 2022 was $16.079 billion and $15.971 billion were earned in the same period of the previous year. The National Planning Law mentioned that $15.5 billion of export value and $14 billion of import value were expected as per the annual price index for the 2022-2023 financial year.

Source: The Global New Light of Myanmar

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Trading activities temporarily closed at Wang Ding route

Traders said that the trading activities have been closed since 26 August due to the detection of the Covid-19 infection at the Wang Ding crossing in Kyinsankyawt on the China-Myanmar border. “Covid-19 infection has been found at Wang Ding. Trading activities have been closed temporarily,” a Mandalay-based rice trader said on his social media page. Wang Ding is the only trading post on the Muse border that has the right to trade between China and Myanmar.

A merchant said that due to the detection of Covid-19 infection in Wang Ding, China-Myanmar border, Ward (1) was placed under lockdown and the Shweli-Wang Ding Bridge was also temporarily closed. As for the trucks that have arrived in Wang Ding, they are going through the border post regularly and will be medically checked on 27 and 28 August 2022. If no more infections are found, the Shweli-Wang Ding Bridge will be reopened, traders said.

China will suspend the entry and exit of trucks through the Wang Ding checkpoint, highway checkpoint, Jiangqiao checkpoint and Heishanmen checkpoint starting from 26 August over the discovery of the virus in the country, according to a businessman in the border area. China has closed the Muse border trade since 2020 because of the Covid-19 disease and only reopened the Wang Ding trade this year. According to the Ministry of Commerce’s statistics, China-Myanmar trade worth more than US$1 billion can be traded through the Wang Ding border. The Wang Ding route, which is currently closed by China, is used for trade and is the place where the alternative driver system is used. It is the main export route for Myanmar’s agricultural produce. 

Source: The Global New Light of Myanmar