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Chinese fruit trucks inspected on the Burmese border can now travel to China without further inspection

Fruits and vegetables are imported into China through the Qin San Gate in Myanmar. On June 1, the Chinese government approved a waiver of goods that can be inspected at the Wanding Valley Orchard in China without the need for further inspection of goods that have been tested for residues and disinfection. In the past, fruits imported from the gates of Kyin San Kyaw Gate in Burma were subject to the COVID regulations at the border. Fruits that have passed the pesticide and disinfection test will be allowed to continue to check out domestic vehicles from the Changhua Fruit Market, and only after passing the medical examination will they be allowed to leave anywhere in China.

“Domestic departure means that cars sold directly from the Chan Ho orchard will be able to leave directly. In the past, you could only leave after a medical examination, ”said Sai Khin Maung. Previously, the mango market suffered losses due to the longer days, but now the mango market has become more active due to the easing. “In the past, you could only leave after a medical examination,” he said. Because it takes days. Two or three days have passed. Due to these days, the quality of mango products was low. It’s a lot faster now. The market situation is that fresh mangoes are cheaper, ”said Sai Khin Maung.

In China’s Wandingchang Ho Fruit Market, depending on the quality, gold, A diamond costs between 80 and 140 yuan each, compared to the same period last year. “The situation is no different from last year,” he said. It has to be done in the midst of difficulties. Various adventurous challenges have to be done. Agricultural input costs are higher than last year. This year is like this. Just like last year. During the COVID period, we had to work in the midst of difficulties. 100% is not good at all. It is a difficult time. And people who dare to work will benefit. The main thing is the quality of the fruit, ”said Sai Khin Maung.

At present, an average of 10 to 15 trucks loaded with mangoes enter the Northeastern Gate Public Company Limited Fruit Market in the 105-mile trade zone every day, and the mango market in Myanmar is a bit dynamic depending on the quality of mangoes, with the rapid departure of domestic goods from China’s Changhua Fruit Market, according to mango growers. As a result of the easing, the entry and exit points at the border crossing have risen slightly, with an average of about 20 Burmese trucks leaving for China, and about 20 trucks re-entering from China, with an average of 70 to 80 trucks a day, including unloaded trucks. “In China, I think the war will be fought according to the rules,” he said. If it’s fast, it’s not that fast. 

Now the truck is getting in and out fast, but it is still seven or eight days away. But it went a little faster. But it is not significant yet, ”said Maung Sein, in-charge of Shwe Lwe In Stadium. Many lockdowns are being eased in China. Traders said that while the unloading of Burmese trucks was being arranged and the departure arrangements were being made, and the beans being shipped in containers were easy to get in and out of, but the cost of returning Burmese trucks was about 1,500 yuan and about 25 lakh unnecessary extra costs on the Burmese side. Combined with the legal costs and the undesirable unnecessary extra costs, the average cost of a truck is around 25 lakhs. A trader in Muse said the costs could ultimately have a huge impact on consumers and could lead to higher commodity prices, prompting a thorough investigation into the need to facilitate not only exports but also imports.

Source: Daily Eleven

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The Kawthoung-Ranong border reopened on 1 June

The Kawthoung-Ranong border post reopened on 1 June after more than two years of closure. Myanmar and Thailand have agreed to allow the people from the two countries to stay two-night three days with a border pass in Ranong, a town in southern Thailand.

Holders of PV passports, those who are going to study in Thailand, and those who have had a three-month visa from the Thai Embassy in Yangon are now able to go to Thailand through Kawthoung. As a travel expense, THB 500 for a boat fare from Kawthoung to Ranong, K300 for a stamp in Myanmar and THB150 for Thailand.

Passport holders will not be required to pay THB2,000 as the deposit, while those who will visit Thailand for seven or 15 days will be required to pay the deposit and they will be able to withdraw it when they arrive back in Kawthoung, according to Ma Win Yi, a Ranong resident. On 24 May 222 Myanmar workers were sent to Thailand under the MoU system through the Kawthoung-Ranong border.

Source: The Global New Light of Myanmar

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Myanmar ships 1.6 mln tonnes of corns in eight months

Myanmar exported over 1.6 million tonnes of corn to the external market between October 2021 and May 2022, said Chairman U Min Khaing of the Myanmar Corn Industrial Association. Out of 1.6 million tonnes, over 700,000 tonnes of corns were delivered through sea trade. “The sea export was earlier sluggish. This year, over 700,000 tonnes of corns were exported through sea trade,” he told the GNLM. Myanmar conveyed corns to Thailand and China through border posts and the corns are shipped to the Philippines, India and Viet Nam through the sea route.

At present, the inventory is low in the domestic market and only 700,000 tonnes of corn remain for exports, U Min Khaing continued. “The production declined this year. Meanwhile, export volume via sea trade has increased this year. This is why the inventory is quite low. Only 600,000-700,000 tonnes of corns are left for exports,” U Min Khaing told the GNLM. The prices stood at K1,100 per viss (a viss equals 1.6 kilogrammes) in the Yangon market and FOB prices were approximately US$340-360 per tonne, according to the Yangon Region Chambers of Commerce and Industry (Bayintnaung).

Myanmar Corn Industrial Association targeted to export approximately two million tonnes of corn during the current corn season (October-September). Myanmar exported 2.3 million tonnes of corn to foreign trade partners in the 2020-2021 financial year. The majority of them were 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

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Export rice prices spiking

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

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Htikhee border sees largest trade among Myanmar- Thailand border posts

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

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Myanmar’s capital goods import down by $54 mln over one month

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

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Myanmar exports up by $115.99 mln over one month

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

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Sino-Myanmar bilateral trade plunges by 32.9 per cent in April

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

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Mango association suggests quality control to maintain market share

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

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Peanut, sesame exports temporarily suspended
to secure local consumption

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