Posts in category: TRADING

From 2 to 8 July, a trade volume worth US$20.662 million was conducted from the Muse 105th-mile trade zone on the Myanmar-China border and the Kawthoung trade post on the Myanmar-Thailand border. The 105th-mile Muse trade zone on the Myanmar-China border has been able to export goods worth $12.065 million and import goods worth $5.467 million. Compared to the previous week, the volume of trade in the Muse 105th-mile trade zone decreased by $3.923 million in exports and $2.672 million in imports, and the trade volume decreased by $6.595 million.

The export this week included crab, eel, white sesame, pulp paper, dried chillies (stemless), turmeric (Shan), and arena nut (with shell) among others and the main exports such as rice, broken rice and beans decreased. As imports, more dry batteries, bicycle spare parts, medicines, and furniture were imported. Import value decreased because fewer corrugated iron sheets, kitchen appliances, tractors, light bulbs, and lamps were imported. Similarly, the Kawthoung trade post on the Myanmar-Thailand border was able to export goods worth $2.802 million from 2 to 8 July.

It is reported that the import value was $0.328 million and the trade volume was $3.13 million. In terms of exports, compared to the previous week, the main export items were various kinds of seafood and $0.202 million were earned more than the previous week. In terms of imports, compared to the previous week, although there were more imports of machinery and equipment, due to the decrease in the import of chemicals, plastic raw materials, detergents and other products, there was a decrease of $0.237 million. Compared to the previous week, the amount of trade decreased by $0.135 million, according to the Kawthoung trading post. 

Source: The Global New Light of Myanmar

Myanmar trucks are allowed to border-crossing through Muse to China under the driver-substitution system, cutting transport costs. Nevertheless, the country’s export sees a downtick. Between 1 April and 8 July in the current financial year 2022-2023, Myanmar exported US$447.692 million worth of goods to China through the Muse border post. The figures drastically plummeted from $710.653 million recorded in the corresponding period last FY. There is a drop of $175.05 million in exports over the Q1 this year.

Prior to 16 May, China banned Myanmar trucks and drivers to enter its side owing to the COVID-19 restrictions and only Chinese short-haul drivers were allowed to transport the goods. This causes the problem of delays and bulk supply owing to the lack of Chinese short-haul truckers, prompting the operators to charge the transportation rate to exorbitant prices. As a result of this, the cost of Chinese short-haul trucking tremendously rose to K10 million, whereas the trucking was worth only K700,000-800,000 when Myanmar truckers were allowed to enter China.

Myanmar trucks are given the go-ahead for border-crossing through the Kyinsankyawt-Wang Ding trade channel out of Muse border points under the driver-substitution system starting from 16 May 2022, said U Min Thein, vice-chair of the Muse Rice Wholesale Centre. “The truck transport rate is affordable for now. Earlier, the freight rate was over K10 million for a truck carrying 1,000 rice bags (50 tonnes each). After 16 May, China gave the green light to the driver-substitution system and the transport cost is estimated at only K1.3 million,” U Min Thein elaborated.

“Nonetheless, it will take some time to go back to normality in the Muse border post,” U Min Thein added. 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. Myanmar daily delivers rubber, green gram, chilli pepper, onion, mango and other food commodities to China through the Kyinsankyawt post. Myanmar has opened five border trade camps with China – Muse, Lweje, Kampaiti, Chinshwehaw and Kengtung. The majority of the trade is carried out through the Muse land border, the Ministry of Commerce’s data indicated.

Source: The Global New Light of Myanmar

India is expected to bring in over 50,000 tonnes of black gram (urad in India) from Myanmar in two months, according to a report cited by Agri World Mumbai. India is expected to import about 15,000-20,000 tonnes of Myanmar’s black gram in July and about 30,000-35,000 tonnes in August. Myanmar sent 15,000 tonnes of black gram to India in June as well. Myanmar has a decent stock of approximately 300,000 tonnes of black gram. If the country exports about 50,000 tonnes to other countries, 200,000-225,000 tonnes of black grams remain for exports.

Additionally, the stock of black gram is getting lower in the market and the volume of sales dropped. At present, a ship loaded with 5,000 tonnes of black gram and pigeon peas left for Chennai, India on 14 July. There is a shipment of 180 containers (4,320 tonnes) scheduled on 17 July and 380 containers (9,120 tonnes) on 23 July. India is facing crop yield drop under drought conditions and declining sowing acres this monsoon season. Their growers are increasingly cultivating cotton and soybean. The sowing acres of rice and various pulses dropped. The areas of urad fell from 1.94 lakhs hectare to 0.93 lakh hectare in 2022, according to the Agri World Mumbai.

Additionally, India’s government reportedly has 110,000 tons of green gram (Moong), 20,000 tonnes of black gram (urad), 9,000 tonnes of pigeon peas (tur) and 7,000 tonnes of red lentils (Masoor) as buffer stock. India is reportedly to import 50,000-75,000 tonnes of black gram (urad in India) and they will purchase black gram from Myanmar to keep them in reserve. India, the main buyer of Myanmar’s black grams, has high consumption of black grams. Furthermore, it re-exports them to the external market after processing the grams.

The annual consumption of black grams in India is estimated at 2.7-2.8 million tonnes. India extended relaxations of conditions regarding clearance consignment for black gram and pigeon peas until 31 March 2023. The prevailing price of black gram is K1,537,000 per tonne, whereas the price peaked at K1,700,000 per tonne on 30 June. Myanmar yearly produces approximately 400,000 tonnes of black gram and about 50,000 tonnes of pigeon peas. Myanmar is the top producer of the black gram that is primarily demanded by India, while pigeon peas, green grams and chickpeas are cultivated
in Australia and African countries beside Myanmar.

Source: The Global New Light of Myanmar

The bilateral trade with neighbouring Thailand is recorded as the highest among the neighbouring countries, amounting to US$1.315 billion in the first quarter of the current financial year 2022-2023, statistics issued by Myanmar Customs Department indicated. During the April-June period, Myanmar’s border trade value stood at $587 million with China, $1.3 billion with Thailand, $9.358 million with Bangladesh and $5.377 million with India respectively.

Myanmar’s exports mostly have gone to Thailand in the past three months. Exports to Thailand via border posts were estimated at $916 million, while imports were valued at $398.9 million. Additionally, Thailand has been Myanmar’s largest trade partner among the regional countries as well. Exports of natural gas from the Taninthayi Region contributed to the enormous increase in border trade with Thailand. The corn exports to Thailand have also shown a significant increase since 2019, the Ministry of Commerce stated.

Myanmar primarily exports natural gas, fishery products, coal, tin concentrate (SN 71.58 per cent), coconut (fresh and dry), beans, corn, bamboo shoots, sesame seeds, garment, footwear, plywood and veneer, broken rice and other commodities to Thailand. It imports capital goods such as machinery, raw industrial goods such as cement and fertilizers, and consumer goods such as cosmetics, edible vegetable oil and food products from the neighbouring country. Myanmar is doing border trade with the neighbouring country Thailand through Tachilek, Myawady, Myeik, Mawtaung, Hteekhee, Kawthoung and Maese border areas respectively. Among them, the Myawady border post performed the largest trade in border trade with Thailand, followed by Hteekhee. 

Source: The Global New Light of Myanmar

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