Posts in category: TRADING

Although the wholesale reference rate of palm oil is set at K4,650 per viss (a viss equals 1.6 kilogrammes) in Yangon Region, the palm oil prices were valued at over K7,000 per viss in the domestic market. The Supervisory Committee on edible oil import and distribution under the Ministry of Commerce has been closely observing the FOB prices in Malaysia and Indonesia including transport costs, tariffs and banking services and issuing the wholesale market reference rate for edible oil on a weekly basis.

The reference rate of palm oil in the Yangon market for a week from 11 to 17 July is set at K4,650 per viss. However, the market price is higher than the reference rate. The palm oil price is estimated at over K7,000 per viss in Yangon Region. Additionally, some oil shops get access to limited sources of supply although they sell palm oil at a reference rate depending on the volume quota. The retail price of palm oil is over K8,100 per viss and the wholesale price is K8,000 per viss in Ayeyawady Region.

If those retailers and wholesalers are found overcharging, storing inventory intentionally and attempting unscrupulous action to manipulate the market, they will face legal action under the Special Goods Tax Law, MoC released a statement. The Ministry of Commerce is striving for the consumers not to worry over the supply of edible oil. The ministry is also trying to secure edible oil sufficiency, supervise the market to offer a reasonable price to the consumers, maintain price stability and prevent market manipulation. The domestic consumption of edible oil is estimated at 1 million tonnes per year. The local cooking oil production is just about 400,000 tonnes. To meet the oil sufficiency in the domestic market, about 700,000 tonnes of cooking oil are yearly imported through Malaysia and Indonesia.

Source: The Global New Light of Myanmar

The prices of peanut and sesame seeds are edging up in the domestic market, the market’s price data indicated. On 1 July, the peanut price moved in the range of K4,100 and K4,400 per viss (a viss equals 1.6 kilogrammes), whereas the price rose to K4,600-K4,700 per viss on 9 June. The figures reflected an increase of K300-K550 per viss. Similarly, the prices of sesame hit the highest of K2,556 per viss of Niger seed, K3,333 per viss of brown sesame and K5,444 per viss of black sesame (Samone variety) on 1 July.

The price rose to K2,711 for Niger seed, K3,933 for brown sesame and K5,778 for black sesame on 9 July. The price of various sesame seeds showed an increase of K150-K600 per viss. After Myanmar’s export ban on oil crops reversed, the prices of peanut and sesame prices inflated. The local millers are also increasingly purchasing them, scaling the stocks down, according to the commodity depots.

Last April, world’s top palm oil exporter Indonesia, which is one of the main oil suppliers to Myanmar, declared an export ban on cooking oil export to reduce domestic shortage. Consequently, Myanmar’s Trade Department under the Ministry of Commerce temporarily suspended exports of oil crops (peanut and sesame) from 9 May to ensure oil self-sufficiency. Exports of Myanmar’s edible oil crops will resume as the world’s top palm oil exporters return to normalcy, according to a notification dated 5 July 2022 released by the Trade Department.

Source: The Global New Light of Myanmar

Exports of Myanmar’s edible oil crops will resume as the world’s top palm oil exporters return to normalcy, according to the Trade Department under the Ministry of Commerce. Last April, the world’s top palm oil exporter Indonesia, which is one of the main oil suppliers to Myanmar, declared an export ban on cooking oil export to reduce the domestic shortage. Consequently, Myanmar temporarily suspended exports of oil crops (peanut and sesame) in order to have oil self-sufficiency. At present, the top exporters restarted cooking oil exports. This being so, Myanmar’s export ban on oil and oil crops is to be reversed.

The export reference prices will be determined in line with the rate in international seaborne trade, according to a notification dated 5 July 2022 released by the Trade Department. As a result of this, oil crops (peanuts and sesame seeds) are to be allowed for export according to the rules and regulations. On 30 June, Foreign Exchange Supervisory Committee notified the traders of the export earnings for agricultural products including oil crops to be paid in dollars. Starting from 4 July, the financial transactions for the corn, beans and oil crops have been made in dollars at the border posts between Myanmar and China.

On 14 December 2021, the Central Bank of Myanmar released a notification that the use of Yuan or Kyat in the bilateral transaction was officially allowed in the border areas between Myanmar and China to boost the bilateral cross-border trade, facilitate the trading and bilateral transaction, and increase the use of domestic currency, following the objectives of the ASEAN Financial Integration. After export earnings were earlier s`et to be paid in dollars instead of yuan, the official exchange rate against the US dollar was set at K1,850. At present, the dollar was valued at over K2,000 in the unofficial FX market, indicating a large gap in the currency exchange rate. Therefore, we have to observe the impacts on the agricultural products from this action, traders said. Moreover, exports of oil crops and cooking oil are exempted from the export licence, yet starting from 1 August, traders need to seek an export licence for those export items, according to a notification of the Trade Department on 23 May.

Source: The Global New Light of Myanmar

Broken rice export to China is making a handsome profit and does a roaring trade, said U Min Thein, vice-chair of the Muse Rice Wholesale Centre. The current market price of broken rice in the Muse area is K36,000 per 50-kilogramme bag. “The broken rice export is thriving. The broken rice is offered at K36,000 per bag in Muse (120 Yuan),” he added.

The foreign and domestic demand elevated broken rice prices. Meanwhile, the price of rice is estimated at K45,000 per 50-kilogramme bag. At present, approximately 10,000 bags of rice and broken rice are delivered to China through the Muse border. About 60,000 bags of rice and broken rice were earlier exported to China per day through the Muse border.

Between 1 April and 30 June in the 2022-2023 Financial Year, Myanmar conveyed over 550,000 tonnes of rice and broken rice to external markets. Of them, over 510,000 tonnes of rice were shipped to foreign markets through the sea trade and over 33,000 tonnes of rice sent to the neighbouring countries through land borders. Myanmar generated an income of over US$700 million from export of about two million tonnes of rice in the 2020-2021 Financial Year.

Source: The Global New Light of Myanmar

The value of agricultural exports amounted to US$961.47 million between 1 April and 17 June in the current financial year 2022-2023, indicating a small increase of $25 million as against the year-ago period. The figure stopped $936.366 million 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, corns, chilli pepper, rubber, mango, various beans and pulses to the external markets through border posts and sea trade. China shut down all the checkpoints linking to the Muse border amidst the COVID-19 pandemic. Of the checkpoints, Kyinsankyawt has resumed trading activity from 26 November on a trial run. 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 to meet production targets, the Agriculture Department stated. The Commerce Ministry is endeavouring to help farmers deal with challenges such as high input costs, procurement of pedigree seeds, high cultivation costs, and erratic weather conditions. The agricultural exports were valued at $2.4 billion in the past mini-budget period (October 2021-March 2022).

Source: The Global New Light of Myanmar

Myanmar’s agricultural products such as rice and rice-related products are exported by bulk carriers yearly. This year, the products will be exported to Europe and African countries from seven jetties at the Sule port terminal. A total of five vessels – two measuring 183 metres in length, two with 186 metres in length and one 200-metre-long ship will carry 143,400 tonnes of rice to Belgium, Spain and Togo.

Among these five vessels, three will lead to Belgium while one to Spain and another one to Togo. The country exports about 200,000 tonnes of rice per month and expects to ship two million metric tons this financial year, according to the Myanmar Rice Federation. The federation will work together with government and partner organizations in solving difficulties in the export sector.

The high-grade rice is mainly exported to the Europe market, China, some ASEAN countries and Bangladesh. Myanmar’s agriculture products, rice, broken rice and brans are exported to Europe and African countries by bulk carriers and the country exported 1,357,202 tonnes of rice by 90 vessels between April 2021 and March 2022 while 582,330 tonnes by 27 vessels in three months from April to June 2022.

Source: The Global New Light of Myanmar

The Myanmar Paddy Producers Association will reportedly strive for the farmers to get seeds and fertilizers at a reasonable rate. The association will contact the farmers to the importer companies so that they can buy the seeds and fertilizers at a cheaper rate than the prevailing market price in the monsoon season. Those enthusiastic buyers can directly contact the Myanmar Paddy Producers Association or through the region and state association branches within two days starting from 21 June. Only an immediate payment method is accepted for now.

The prices of seeds stand at K11,500 per basket of Sinthuka seed and Byautthuka seed, K12,000 for Pakan paddy seed, K6,000 per 1 kg-bag of New Aya seed, K23,000 per 21 kg-bag of Aya Min seeds, K18,000 per 21 kg-bag of Sinthuka seed and K19,000 per 21 kg-bag of Hnankauktun. Urea fertilizer is imported from Indonesia and Iran and it is priced at K83,500 per bag. Those interested can buy them through the contact number of UMFCCI (01 2314841, 09 5029755, 09 401326717, 09 799293818) and email: mppa. org.mm@gmail.com.

On 16 June, the Urea Fertilizer Purchase and Distribution Committee also sold about 75,000 tonnes of urea fertilizer at a fair rate. Those fertilizers are imported with the foreign currency that was sold by the Central Bank of Myanmar. This scheme started on 11 June and urea fertilizers were distributed to the 291 retail shops in 136 townships across 11 regions and states, with an immediate payment service. However, the prices differ in regions and states after adding the transport charges.

The prices of urea fertilizer per 50- kg bag were K86,000 in Yangon warehouse, K87,800 in Bago city, K88,600 in Pyay, K88,600 in Mandalay Region, K89,000 in Magway Region, K89,100 in Salin/ Pwintbyu area, K88,800 in Thaton and Mawlamyine cities, K89,500 in Monywa, K89,800 in YeU and Shwebo areas in Sagaing Region, K88,000 in Thongwa, K86,500 in Htantabin, Yangon Region, K92,600 in Sittway and K99,400 in Maungtaw, Rakhine State, K88,800 in Hpa-an and K89,300 in Hlaingbwe, Kayin State, K88,200 in Pathein and K88,100 in Hinthada, Ayeyawady Region, K96,000 in Kengtung and K100,800 in Mongton in the eastern Shan State, K92,000 in Lashio and K90,100 in Kyaukme in the northern Shan State and K89,500 in Taunggyi, K88,800 in Kalaw and K92,000 in Mongpan in the southern Shan State.

The farmers can take out purchase certificates free of charge from the agriculture management team in the respective village-tract. They can buy the urea fertilizer at the reference rate issued by the committee at the respective shops in each township. If they find it hard to buy them at the reference rate at the respective shops or they face any difficulty in purchasing them, they can contact the Ministry of Cooperatives and Rural Development via 067 410035, the Cooperative Department via 067 410040 and the Rural Development Department via 067 418621 and township-level Urea Fertilizer Purchase and Distribution Committees in the regions and states. The committee, in cooperation with a consortium comprising fertilizer, seeds and mineral nutrient businesspersons and member companies and Myanmar Rice Federation, is providing service for the farmers to buy the quality urea fertilizer at a cheaper price than the current market price.

Source: The Global New Light of Myanmar

Myanmar conveyed about 1.8 million tonnes of corn to external markets between 1 October and 15 June in nine months, said U Min Khaing, chair of the Myanmar Corn Industrial Association. At present, Myanmar exports corn to Thailand and China via border posts, while the corn is delivered to the Philippines, India and Viet Nam. In the 2021-2022 corn season (October-September), Myanmar targets to export about 2 million tonnes of corn to external markets, said U Min Khaing.

The price is relatively down in domestic markets as Myanmar’s corn price is heavily relying on Thailand. The prices of corn stand at K1,030-1,050 per viss depending on quality. Additionally, corn crops will soon be harvested in Thailand in the coming months. Nevertheless, we cannot say for sure that the price will remain downward or not, U Min Khaing added. Thailand gives green light to corn imports under zero tariff (with Form-D), between 1 February and 31 August.

However, Thailand imposed a maximum tax rate of 73 per cent on corn imports to protect the rights of their growers if the corn is imported during the corn season of Thailand. Therefore, only two months (July and August) are left for corn exports under Form D exemption. Myanmar exported 2.3 million tonnes of corn to foreign trade partners in the 2020-2021 corn season (October-September). Of them, 1.7 million tonnes of corn was sent to Thailand. At present, corn is cultivated in Shan, Kachin, Kayah and Kayin states and Mandalay, Sagaing and Magway regions. Myanmar has three corn seasons — winter, summer and monsoon. The country produces 2.5-3 million tonnes of corn every year.

Source: The Global New Light of Myanmar

Over US$ 1,174 million worth of garment products were exported in the second quarter of the 2021-2022 FY, according to the Ministry of Planning and Finance. The garment products, ordered from Japan, China, South Korea, and the EU member nations, were made locally through the CMP contract system.

Of 10 countries where locally-made garments were exported, garments worth $ 930 million were exported to Germany, $ 323 million to the UK, $ 294 million to the Spain, $ 266 million to France, $ 158 million to Denmark, $ 157 million to Italy, and $ 145 million to the Netherlands, respectively.

In addition to major exports such as rice, beans, and corns, garment exports under CMP system is the largest. Within the last five years, garment exports have more than quadrupled, and the garment sector was the most developed sector. Myanmar received $ 842.6 million from the garment exports in the second quarter of the 2020-2021. In the second quarter of the 2021-2022 FY, additional $ 332.2 million was made compared to the previous fiscal year, according to the statement of the Ministry of Planning and Finance.

Source: The Global New Light of Myanmar

Until 3 June of the 2022-2023 Financial Year (FY), Myanmar’s seaborne trade reached US$ 4,345.852
million, an increase of $1,088.440 million from the same period last year, according to the Ministry of
Commerce.

Export by sea imports of trade increased from the previous financial year to a total of $3,257.412 million in the last 2021- 2022 financial year. Exports in the current fiscal year Imports and exports amounted to $4,345.852 million.

There are nine ports for seaborne trade in Myanmar, and more than 150 cargo ships have docked in Yangon port alone in the past five months, according to a statement from the Myanma Port Authority. Cross-border trade totalled $1,707.315 million during the 2021-2022 financial year, down from $1,164.925 million as of 3 June of this financial year, down $542 million from the previous year. Maritime trade increased while cross-border trade declined due to the COVID-19 outbreak.

Source: The Global New Light of Myanmar