Posts in category: TRADING

The prices of rice for the export market are rocketing, said U Than Oo, secretary of the Bayintnaung Rice Wholesale Depot-BRWD. At present, traders are purchasing the rice to export them as per a previously signed MoU. However, they are not commercially doing well, he said. “As the contract price has been already fixed and the domestic rice price stays on the rise, the traders are struggling to meet the contracts. Moreover, the summer paddy is not that abundant and local brokers keep the inventory on hand. Therefore, the prices of rice are going up,” U Than Oo elaborated.

According to the provisions stipulated in Sections 11, 12 and 13 of the Foreign Exchange Management Law, all the foreign currency earned by locals have to be exchanged for local currency at the CBM’s reference rate of K1,850 by opening the accounts at the authorized dealers in the country within one working day, according to the notification released on 3 April. “Exporters fill the inventory from the domestic market. The rice is loaded on the ships after the rice cleaning process to remove dust. The foreign exchanges earned according to the contract are deposited into an account and exchanged for local currency at the set rate of K1,850.

This is the trading process for now. Although the dollar is worth over K2,000 at the unofficial exchanges, the official exchange rate is fixed. This is why the exporters are facing financial hardship to offer a higher price in the competitive market. Those who are buying them are not making profits yet they are trying to accomplish the contract,” the BRWD secretary said. The export rice prices (low grade) move in the range of K29,000 and K30,000 per 108-pound bag depending on different varieties, according to the Bayintnaung Commodity Centre.

Myanmar has shipped more than 1.4 million tonnes of rice and broken rice to foreign trade partners between 1 October and 31 March in the past mini-budget period 2021-2022, the Myanmar Rice Federation stated. The country sent over 76,000 tonnes of rice and broken rice to the neighbouring countries through land borders whereas it placed over 1.3 million tonnes in the international market via the sea route. Myanmar also generated an income of US$700 million from two million tonnes of rice exports to the foreign countries in the past 2020-2021 Financial Year.

Source: The Global New Light of Myanmar

Myanmar’s Htikhee border carried out the largest trade among the Myanmar-Thailand border posts,
with an estimated value of US$254.92 million between 1 April and 13 May of the current financial year 2022-2023, according to Myanmar Customs Department. The figures soared from $118.995 million recorded in the year-ago period. There showed a significant increase of $135.9 million.

Exports of natural gas from Taninthayi Region contributed to the enormous increase in trade through the Htikhee border in the previous years, the Ministry of Commerce stated. The border trade between Myanmar and Thailand is conducted through the border areas—Myeik, Kawthoung, Tachilek, Myawady, Mawtaung, Htikhee and Meisei posts. Myawady border post witnessed a small decrease in trade value owing to the transportation difficulty triggered by the security concerns and extreme weather condition.

Myanmar primarily exports natural gas, fishery products, coal, tin concentrate (SN 71.58 per cent), coconut (fresh and dried), beans, corns and bamboo shoots to Thailand. It imports capital goods such as machinery, raw industrial goods such as cement and fertilizers, and consumer goods such as cosmetics and food products from the neighbouring country. Bilateral trade between Thailand and Myanmar through the Htikhee border in the past mini-budget period (Oct 2021-Mar 2022) touched a high of US$965.469 million.

Source: The Global New Light of Myanmar

A slowdown in the construction market acts as a barrier to importing capital goods, resulting in a drop of US$54 million over one month of the current financial year 2022-2023, Myanmar Customs Department’s statistics indicated. Myanmar imported capital goods such as auto parts, vehicles, machines and steel, with an estimated import value of $345.66 million between 1 April and 6 May 2022, which slightly declined from $399.9 million. Additionally, some foreign investment enterprises were suspended during the COVID-19 and the condominium property market relying on foreign expatriates plunged drastically. As a result of this, the realtors are forced to reduce the rents.

The rental market continued a downward spiral amidst the COVID-19 consequences and political changes. The occupancy is drastically declining, a realtor from Yangon elaborated. Nevertheless, the real estate market sees an upturn in prices of the house and land as some investors believe it is a haven asset during difficult times. As the Kyat is depreciating on the US dollar, construction costs have risen. Consequently, the developers are facing supply chain issues. The construction sector imports steel, cement, electronic appliances, machinery and others. Meanwhile, three other import groups saw an increase. Myanmar imported consumer products worth over $307.765 million, including pharmaceuticals, cosmetics, and palm oil.

The imports of consumer products showed a slight decrease of $23.6 million as against the year-ago period. 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 soared to $482.66 million from $461 million registered during the year-ago period. Over one month, raw materials worth over $306.3 million were also imported for the Cut-Make-Pack (CMP) garment sector, showing a rise of $217 million compared with the last financial year. The top-10 import countries to Myanmar are China, Singapore, Thailand, Malaysia, Indonesia, India, Viet Nam, Japan, the Republic of Korea and the US, as per data from the Ministry of Commerce. 

Source: The Global New Light of Myanmar

The Customs Department’s statistic indicated that Myanmar’s exports between 1 April and 6 May in the current financial year from April 2022 to March 2023 soared to US$1.34 billion from $1.2 billion recorded
in the corresponding period of last year. The figures reflected an increase of over $115.99 million compared with a year-ago period, according to data from the Ministry of Commerce.

The negative pandemic consequences deal a severe blow to the agriculture, livestock and mineral sectors during the past mini-budget period. As China eases some virus rules and regulations, the export sees a slight increase in agriculture sector this FY. At present, the CMP garment sector raises its head again after the vaccination programme to the factory workers as well. Of the seven export groups, fisheries, forest and other exports showed a small increase compared to the year-ago period.

Over one month, export values were registered at $423.3 million for agro products, $2.77 million for livestock, $56.137 million for fishery products, $69.66 million for minerals, $12.15 million for forest products, over $750.69 million for manufactured goods, and $26.24 million for other goods. Myanmar’s top export countries are listed China, Thailand, Japan, India, USA, Spain, Germany, UK, ROK and the Netherlands. The country’s export sector relies more on the agricultural and manufacturing sectors. The Ministry of Commerce is focusing on reducing trade deficit, export promotion, import substitution and market diversification.

Source: The Global New Light of Myanmar

The statistics released by the Ministry of Commerce indicated that the value of border trade between Myanmar and a major trade partner China dropped by 32.9 per cent (US$69.307 million) in April 2022 compared to the corresponding period last year. The value of Myanmar-China border trade in all five bor der areas touched a low of $141.343 million in April, comprising exports worth $128.94 million and imports worth $12.399 million The figure significantly plummeted from over $210.65 million recorded in the year ago period. Last month, border trade values amounted to $100.9 million through Muse border, $17.424 million via Lweje, $5.3 million via Chinshwehaw, $16.259 million via Kampaiti, and over $1.43 million via Kengtung.

The Commerce Ministry’s data showed a drop in trade value through Muse and Chinshwehaw border areas between Myanmar and China. China banned Myanmar trucks and drivers to enter its side because of the COVID-19 protocols and only Chinese short-haul drivers are allowed to transport the goods. Another trade barrier is the red tape of the COVID regulations, causing trade delays, according to Muse Rice Wholesale Centre. The transport delays caused damage to the quality of the goods and hike up the transportation rate, said a trader from the Muse border.

Only if China lifted COVID restrictions can Muse border trade revive, said U Min Thein, vice-chair of the Muse Rice Wholesale Depot. China shut down all the checkpoints linking to a major border post Muse amidst the COVID-19 pandemic. Of the checkpoints, Kyinsankyawt has resumed trading activity from 26 November on a trial run. Myanmar daily delivers rubber, various beans and pulses, dried plum, watermelon, muskmelon and other food commodities to China through Kyinsankyawt post with about 30 trucks. Myanmar has opened five border trade zones 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 showed.

Source: The Global New Light of Myanmar

Myanmar’s mango growers had better focus on quality control in order to maintain market share, in China said U Kyaw Soe Naing, general secretary of the Myanmar Mango Market and Technology Development Association (Mandalay). Approximately three to four truckloads of Seintalone mango are daily exported to China. Quality mango export is required to hold market share. “The growers must deliver mango that meets quality standards and norms. Some growers carried out early harvesting of the mangoes without reaching the maturity stage as they’re worried about possible damage in strong wind. Those fruits cannot assure market share in China. It could lead to negative impacts on other growers as well.

The mango growers should ensure quality to have a sustainable export market and maintain market reputation,” said U Kyaw Soe Naing. The prices of mango touched a high of 120-160 Yuan per 16-kilogramme. As mango is perishable good and delay can harm fruit quality, the authorities concerned are making efforts to transport the mango as soon as possible. It takes only three days for shipment, U Kyaw Soe Naing continued. Myanmar’s mango exporters are facing challenges such as delays triggered by the virus policy, customs policy impeding the exports and high transport costs to enter China. Therefore, some growers are enthusiastic to distribute them only in the domestic market, said Sai Khin Maung from the Khwanyo fruit depot.

Good Agricultural Practices are required for mango exports to China. Moreover, the growers and workers have to strictly adhere to COVID-19 preventive measures such as washing hands, wearing masks and gloves, and sanitation in the packaging process, according to the Khwanyo fruit depot. Of about 200 mango varieties that originated in Myanmar, Seintalone, Shwehintha, Padamyar Ngamauk, Yinkwe, and Machitsu varieties are primarily grown. The foreign market prefers Seintalone varieties. Ayeyawady Region possesses the largest mango plantation acres, having about 46,000 acres. Bago Region is the second-largest producer with 43,000 acres and Mandalay has 29,000 acres of mango. There are over 24,000 acres in Kayin State, over 20,400 acres in Shan State and over 20,000 acres in Sagaing Region, according to the association.

Source: The Global New Light of Myanmar

The exports of peanut and sesame seeds came to a temporary halt in order to ensure self-sufficiency in the domestic market, according to the Trade Department under the Ministry of Commerce. Among the agricultural products that are allowed to be exported through the border posts, oil crops (peanut and sesame seeds) except black sesame are temporarily suspended for exports. The Trade Department released a statement on 9 May to discuss with the related organizations to ensure peanut and sesame export ban. The export ban over peanut and sesame except black sesame was effective starting from
9 May 2022. The slowdown of businesses from the consequences of the COVID-19, palm oil export ban
by the leading exporting country Indonesia, a drop in the sunflower oil export because of the escalating Russia-Ukraine crisis and international edible oil market conditions negatively affected the edible oil market.

As a result of this, export restrictions on oil crops are required to promote food security in the domestic market, the Trade Department stated. The majority of the HS codes of oil crops and cooking oils are not included in the list of goods that need an export licence. Therefore, for a temporary stop of cooking oil and crops, Customs Department also ceased matters regarding the export declaration and customs clearance process for the oil crops except for black sesame and edible oil in line with the existing rules and regulations from 9 May 2022. The world-leading palm oil-producing country Indonesia banned exports of palm oil to reduce the shortage of palm oil and control the volatile market prices from 28 April. Consequently, it prompted Myanmar to temporarily block the exports of peanut and sesame seeds for
self-sufficiency, and oil traders shared their opinions. Additionally, under the directive of the Ministry of Commerce, it is forbidden to withdraw oil from oil tanks without notification of the Myanmar Edible Oil Dealers’ Association, according to the association’s statement released on 10 May.

There are 18,097.16 tonnes of palm oil remaining in the palm oil tanks so far, according to a report on 9 May. The statement highlighted the inventory to remain unchanged. The Supervisory Committee on edible oil import and distribution under the Ministry of Commerce has been issuing a weekly reference rate to govern the market in line with the changes in international rates. The reference rate for a week from 9 to 15 May is set at K6,025 per viss (a viss equals 1.6 kg). The committee 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 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 value of Myanmar’s bilateral trade with the neighbouring country Thailand through land border has registered a decrease of US$12.798 million in April of the current financial year 2022-2023 as against a year ago period, statistics issued by the Ministry of Commerce indicated. The ministry reported that exports surpassed imports in trade with Thailand this year, with exports reaching over $240.4 million and imports valued at over $92 million, totalling $332.47 million.

During the corresponding period of the past FY2020-2021, Myanmar-Thailand border trade touched a high of $345.27 million. There are seven border posts between Myanmar and Thailand through Tachilek, Myawady, Kawthoung, Hteekhee and Myeik. Except for Kawthoung, Myeik and Myawady, the remaining border crossings showed a slight increase in the trade this FY. The value of border trade stood at $10.677 million via Tachilek, $134.848 million via Myawady, $18.1 million via Kawthoung, $4.655 million via Myeik and $163.4 million via Hteekhee.

Myanmar exports the corn to Thailand through Myawady and Tachilek land border. Additionally, exports of natural gas from the Taninthayi Region contributed to the enormous increase in border trade with Thailand in the previous years. Myanmar primarily exports natural gas, fishery products, coal, tin concentrate (SN 71.58 per cent), coconut (fresh and dried), beans, and bamboo shoots to Thailand. It imports capital goods such as machinery, raw industrial goods such as cement and fertilizers, and consumer goods such as cosmetics and food products from the neighbouring country.

Source: The Global New Light of Myanmar

The value of agricultural exports shrank to US$325.6 million in April in the current financial year 2022-
2023, indicating a small decrease of $11.9 million as against the year ago period. The figures topped $337.58 million in the corresponding period last year. Cross-border restrictions between Myanmar and major top customer country China resulted in a sharp drop of agricultural export group in the mini-budget period (Oct 2021- Mar 2022), according to the statistics released by the Customs Department.

Following the closure of Sino-Myanmar border posts triggered by COVID-19 impacts and changes in China’s Customs regulations, the export saw a drastic drop in agriculture. China shut down all the checkpoints linking to Muse border amidst the COVID-19 pandemic. Of the checkpoints, Kyinsankyawt has resumed trading activity from 26 November on a trial run.

Myanmar agricultural products are primarily exported to China, Singapore, Malaysia, the Philippines, Bangladesh, India, Indonesia, and Sri Lanka. 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 the 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. The Commerce Ministry is endeavoring 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.

Source: The Global New Light of Myanmar

The export price of Myanmar’s Seintalone mango to China this year inched higher than that of last year, according to U Kyaw Soe Naing, general secretary of Myanmar Mango Market and Technology Development Association (Mandalay). At present, export to China is on a trial run. After the goods pass COVID tests at the use 105th-Mile Post, mangoes are delivered to China.

The mango prices touched a high of 130-140 Yuan per 16-kg basket this year, which rose from 80-100 Yuan recorded last year. “Myanmar started to export mango to China. Sanitizing fruits harmed quality in the first batch. As a result, only the COVID test will be run later. Only two to three trucks are daily conveyed to China for now. China’s market will come to a halt once the virus is detected on the truck.

Chinese buyers come to the Muse 105th Mile Post and set the price. They offer a high price this year. A basket of 16-kg mango fetches over K50,000,” he elaborated. If the virus is not detected, the market is likely to raise its head. Negotiations with China’s counterparts are still undertaken to facilitate the trade. In addition to the Seintalone variety, Maethi, Shwehinthar, Padamyar Ngamauk, and Yinkwe varieties will also be sent to China. The weather condition wreaked havoc on the yield this year, yet the price is pretty good.

Source: The Global New Light of Myanmar