Posts in category: TRADING

Myanmar’s external trade in the first half of the 2022-2023 Financial Year tremendously edged up to US$17.08 billion, reflecting a sharp increase of $3 billion as against the year-ago period, according to the Ministry of Commerce.

The figures surged from $14.078 billion in the corresponding period last year. Myanmar’s export was worth over $8.56 billion whereas the country’s import was valued at $8.52 billion over the past two months. The border trade dropped owing to China’s strict virus rules and security in transport amid the political changes, with a decrease of $89.8 million in cross-border trade as against the year-ago period.

However, the maritime trade registered a significant rise of $2.257 billion in nearly four months. 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

The value of Myanmar’s imports between 1 April and 23 September of the current financial year 2022-2023 surged to US$8.159 billion, which reflects a sharp rise of $1.55 billion compared to the year-ago period, the Ministry of Commerce’s data indicated. The import value stood at $6.6 billion in the corresponding period of the past 2021-2022 mini-budget period.

The imports of capital goods and consumer goods declined, while the other import groups (intermediate goods and CMP businesses) witnessed a slight increase. The capital goods, such as auto parts, vehicles, machines and steel were brought into the country. The import value was estimated at $1.46 billion as of 23 September this FY. The figure was over $332 million lower than the value registered in the same period of the previous mini-budget period.

Meanwhile, Myanmar imported consumer products worth $1.49 billion, including pharmaceuticals, cosmetics, and palm oil. The imports of consumer products showed a slight decrease of $207.9 million compared with the same period in the previous FY. Intermediate goods make up the largest share of Myanmar’s imports, with petroleum products and plastic raw materials being the main import items.

This year, imports of raw materials climbed up to $3.8 billion from $2.399 billion registered during the year-ago period. During the same period, raw materials worth over $1.34 billion were also imported for the garment sector on the cut-make-pack (CMP) basis, showing an increase of $626.45 million compared with the same time of the last mini-budget period, as per data from the Ministry of Commerce.

Source: The Global New Light of Myanmar

The value of Myanmar’s goods exports was relatively higher than those of imports between 1 April and 23 September in the current financial year 2022-2023, according to statistics provided by the Ministry of Commerce. Myanmar’s trade gap significantly shrank to US$0.024 million this FY from $234 million registered in the corresponding period of the 2021-2022 FY. In the nearly a half of the FY, the value of Myanmar’s external trade soared to $16.3 billion from $13.45 billion recorded in the year-ago period.

While exports were estimated at $8.159.057 billion, imports were valued relatively low at $8.159.033 billion during April-Sept period. Compared to the FY 2021-2022, exports showed an increase of over $1.3 billion, while import value was up by $1.55 billion. Myanmar’s maritime trade value edged up to $12.5 billion in the nearly past six months from $9.5 billion recorded in the same period last year yet the country witnessed a small drop of $135 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 products, 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 material and supporting products for export promotion and the import substitution.

Source: The Global New Light of Myanmar

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

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

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

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

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

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

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