Posts in category: TRADING

Myanmar delivered more than 1.07 million metric tons of rice and broken rice in the past four months of the current mini-budget period (October 2021-March 2022), according to the Myanmar Rice Federation (MRF). Myanmar has exported rice to 27 foreign markets so far. China is the main buyer of Myanmar rice. Meanwhile, Myanmar shipped broken rice primarily to China, followed by the Netherlands, Belgium, Spain, France and three other countries. The volume of rice and broken exports stood at over 216,375 MT in October 2021, 285,223 MT in November, 301,033.9 MT in December and 269.215.9 MT in January 2022, respectively, MRF’s data showed.

The prices of low-quality white rice varieties were approximately valued US$330-355 per MT depending on the different varieties and quality. The export price of Myanmar’s rice was relatively lower than the rates of Thailand and Viet Nam. Yet, the prices were higher than those market prices of India and Pakistan, MRF’s data showed. At present, traders turned to maritime trade for rice export as COVID-19 restrictions hindered the trading activity through the border posts. Myanmar shipped rice and broken rice to China, regional countries and European Union countries through maritime trade.

Trading in the domestic market is quite sluggish amidst the excess supply. The rice worth K43,000-K50,000 per bag is highly demanded in the domestic market. The prices of high-quality rice move in the range of K34,500-K58,000 per bag, the Bayintnaung Rice Wholesale Centre’s price data indicated. Myanmar generated over $800 million from rice exports in the financial year 2019-2020 ended 30 September, with an estimated volume of over 2.5 million tonnes. Myanmar generated US$700.13 million income from exports of 1.87 million tonnes of rice and broken rice in the past FY2020-2021 (October-September) amidst the border trade disruption triggered by the COVID-19 negative consequences, as per the statistics released by the Myanmar Customs Department.

Source: The Global New Light of Myanmar

Trade between Myanmar and its four neighbouring countries has reached over US$1.99 billion this mini-budget period to date, according to the statement of the Ministry of Commerce. Myanmar shares borders with China, Thailand, Bangladesh and India.

The country conducts border trade with neighbouring China through Muse, Lweje, Kampaiti, Chinshwehaw and Kengtung, with Thailand via Tachilek, Myawady, Kawthoung, Myeik, Hteekhee, Mawtaung and Meisei checkpoints, with Bangladesh via Sittway and Maungtaw and with India through Tamu and Reed border crossings, respectively. Exports of these four countries from the start of October 2021 until 21 January 2022 generated $1.43 billion.

On the same period, the country imported $568.3 million worth of goods. From 1 October to 21 January of the 2021-22FY, the total border trade value amounted to $1.999 billion, down $1.36 billion compared with the same period last year. This time last year, the border trade was valued at $3.36 billion. Myanmar’s major export items are farm, animal, marine, forest, mining, CMP and other products. Myanmar mainly imports capital goods, industrial raw materials, personal goods and CMP raw materials. 

Source: The Global New Light of Myanmar

Myanmar’s lower import as of 21 January in the current six-month mini-budget period (Oct 2021-Mar 2022) resulted in a positive trade balance of US$299 million, according to data provided by the Ministry of Commerce. Myanmar’s exports surpassed imports in international trade although overall trade value declined compared to the same corresponding period of 2020-2021 financial year. Between 1 Oct and 21 January, the country’s exports were estimated at $4.68 billion, imports were valued at $4.38 billion this FY.

The external trade drastically sank to $9.06 billion from $9.95 billion recorded in the year-ago period. Myanmar witnessed a slump in exports and imports triggered by the coronavirus impacts. Myanmar’s maritime trade climbed up yet the country witnessed a drop in border trade amid the coronavirus impacts and political changes. The neighbouring countries tightened the border security and restrict trading in certain border areas. Myanmar exports agricultural products, animal products, minerals, forest products, and finished industrial goods, while it imports capital goods, raw industrial materials, and consumer goods.

Moreover, import fall led to the largest trade surplus of $677 million in the last FY2020-2021, with $15.36 billion worth of exports outperforming $14.69 billion worth of imports. 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 import substitution. The ministry has already notified the importers of the compulsory licencing for some imported items. Import licence can be sought from 1 February 2022 with an aim to respond to the post-COVID-19 economic recovery, ensure systematic import and export process and manage foreign capital inflows.

Source: The Global New Light of Myanmar

Ministry of Agriculture, Livestock and Irrigation and the General Administration of Quality Supervision, Inspection and Quarantine of the People’s Republic of China (AQSIQ) signed an agreement on 31 January 2022 regarding SPS Protocol (Sanitary and Phytosanitary Protocol) for biosecurity, for Myanmar to legally ship maize to China on a trial run. The SPS protocol is a must for legitimate export to China, the main trade partner of agricultural products with Myanmar.

According to the agreement, Myanmar can export maize grains to China through maritime route and border channels. This agreement will boost the legitimate agro trading between Myanmar and China and bring about the interest of the growers. MoALI and GACC officials signed the agreement to meet SPS protocol requirements on exports of rice and broken rice in January 2020 during Chinese President Xi Jinping’s visit to Myanmar, along with the fruitful negotiation of the live cattle trade.

At present, the establishment of an animal quarantine station is underway in the respective border posts to continue the live cattle trade. One station has been set up in Kutkai Township. Furthermore, a series of negotiations between MoALI and Chinese counterparts are being undertaken for soybean, cassava and sweet potato. Additionally, SPS measures for pineapple, avocado, pomelo, lime and areca nuts are still under negotiation for now. Myanmar conveyed agricultural products, livestock and fisheries worth of US$5.427 billion to China in the 2020-2021 financial year. 

Source: The Global New Light of Myanmar

The Forest Department under the Ministry of Natural Resources and Environmental Conservation called for competitive bidding to seek a three-year working permit for harvesting the edible bird nests which were out of stock during the spike of COVID-19 cases in Myanmar. “The islands of Myeik Archipelago in Taninthayi coastal region are habitats of swiftlets. The Forest Department has been managing those islands for years. Earlier, it granted the work permit once a year. Starting from 2020, the department gave green light to this business once every three years,” said an official of Taninthayi Region Forest Department.

The winner of the auction for harvesting the bird nests on the islands of Taninthayi Region can collect the edible bird nests between the 2021-2022 financial year and 2023-2024FY. Bidding will commence soon. The islands to harvest the edible bird nests are located in Dawei, Myeik and Kawthoung districts. According to open tendering rules and regulations, an individual businessperson must handle the work. Edible-nest swiftlets dwell in the Southeast Asian coastal region and they can be found in Taninthayi Region.

The work permit is changed from a yearly basis to once every three years for the sustainable production of bird nests. The edible bird nests production businesses boomed in the COVID-19 pandemic. Last year, the market saw an exorbitant price of bird nests. Moreover, with the price of edible birds’ nests rising, the number of breeders of edible nest swiftlets has increased in Myeik Township. Edible nest swiftlets are induced into making nests using bird-noise techniques at houses along the Strand Road in Myeik. This breeding business has become popular in the region, and many breeders are thriving, said breeders. Two types of nests are sold at the market: those from islands and those collected from breeding houses. 

Source: The Global New Light of Myanmar

The Ministry of Commerce has declared HS code lines for imports which need licence starting from 1 March 2022. This action aims to respond to the post COVID-19 recovery, ensure systematic import and export process and manage foreign capital inflows. The ministry has already notified the importers of the compulsory licensing for some import items. Import licence can be sought from 1 February 2022.

Those HS code lines include the following import items; bicycles, other cycles, parts and accessories of bicycle, cycle and vehicles, glass fibres, glass wares and other articles of glass, knitted or crocheted fabrics, textile materials, cotton and silk yarn, plastic, chemical, coffee substitutes and extracts, pharmaceutical products and equipment, sunglasses, hand clock, arms and ammunition, pistols, furniture, mattress, cushion, chandelier, electrical appliance, game machines, extraction from animals, stamps and antiques, vessel and parts, telecommunication materials, household goods, air-conditioner, cold storage and refrigeration machines, washing machine, hot air balloons, iron, steel, aluminum and gems and jewellery, ceramic, construction materials, printing materials, rubber, leather, flammable items, fuel oil, food products, tobacco and related products, preserved food, raw materials for food processing industry, animal products, aquatic animals, live animals and decoration materials.

Starting from 1 March, those items included in the HS code lines declared by the Ministry of Commerce are obligatory for import licensing. More items which need import licence will be notified as well, in compliance with the Export and Import Law. Myanmar imports the consumer, capital, intermediate goods, and materials used by CMP businesses. The value of Myanmar’s imports as of 21 January in the current mini-budget period (Oct 2021-Mar 2022) sank to US$4.38 billion from $4.94 billion recorded in the same corresponding period of last FY, the Ministry of Commerce’s data indicated. The top 10 import countries to Myanmar are China, Singapore, Thailand, Indonesia, Malaysia, India, Viet Nam, Japan, the Republic of Korea and the US, as per data of the ministry.

Source: The Global New Light of Myanmar

The value of agricultural exports sank to US$1.25 billion as of 21 January in the current mini-budget period (Oct 2021-March 2022), indicating a significant drop of $375.5 million as against the year ago period, as per the statistic of the Ministry of Commerce. The agro exports topped $1.6 billion in the corresponding period of the 2020-2021 FY. China constitutes 90 per cent of Myanmar’s fruit and vegetable export. During the previous financial year, the closure of border posts by China adversely affected the fruit producers. Additionally, China’s import regulations and prevention measures for the COVID-19 caused delay, exporters said.

At present, some border posts are operating trade activities on a trial run. During the mini-budget period, the coronavirus pandemic impacted the foreign demand for agricultural products, livestock, mineral and finished industrial goods. In contrary, the exports of fishery, forest products and other goods rose slightly. In the exports sector, the agriculture industry performed the best, accounting for 37 per cent of overall exports. The chief items of export in the agricultural sector are rice and broken rice, pulses and beans and maize. Fruits and vegetables, sesame, dried tea leaves, sugar, kitchen crops and other agro products are also shipped to other countries.

Myanmar agro products are primarily exported to China, Singapore, Malaysia, the Philippines, Bangladesh, India, Indonesia, and Sri Lanka. The country requires specific export plans for each agro 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 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 jumped to US$4.6 billion last financial year 2020-2021, despite the downward trend in other export groups.

Source: The Global New Light of Myanmar

The value of Myanmar’s seafood exports as of 14 January in the current six-month mini-budget period (October 2021-March 2022) was estimated at over US$276.58 million, which increased slightly from $2.57 million in the corresponding period of the last financial year 2020-2021, the Ministry of Commerce’s data indicated. Ministry of Agriculture, Livestock and Irrigation is focusing on boosting production, exploring new markets, increasing export items, enhancing the livelihood of local people, providing financial assistance to the breeders, promoting the fish consumption of the people and tackling the challenges together with all the stakeholders.

Moreover, the Myanmar Fisheries Federation (MFF) is attempting to grow fishery export regardless of the COVID-19 disruption on maritime trade, closure of borders and fuel oil price instability. The high input cost such as fishing net, oil price posed another burden for the industry, coupled with the devaluation of Kyat in the forex market, the Mawlamyine Commodity Centre stated. The marketable fish products, especially fish, shrimp, eel and crab from Taninthayi and Ayeyawady regions and Rakhine State are primarily exported to foreign markets.

Myanmar normally exports fisheries products, such as fish, prawns, and crabs, to markets of 40 countries, including China, Saudi Arabia, the US, Japan, Singapore, Thailand, and countries in the European Union.  Chinese market constitutes about 65 per cent of Myanmar’s fishery exports, accounting for US$254 million out of the overall fishery export value of over $850 million in the FY2019-2020. At present, China shut down the border areas in wake of the COVID surge in Myanmar. The federation is turning to the Bangladesh market with export potentials at present. There are 480,000 acres of fish and prawn breeding farms across the country and more than 120 cold-storage facilities in Myanmar. During the last financial year 2020-2021 (October-September), Myanmar shipped approximately $785 million worth of seafood, the Ministry of Commerce’s data showed.

Source: The Global New Light of Myanmar

The prices of rice and rice crops slipped owing to the bulk supply of rice in the domestic markets, traders said. The prices of rice crop in domestic markets stand at K616,000-K920,000 per 100-baskets. At present, the rice worth of K43,000-K50,000 per bag is highly demanded in the domestic market. The prices of high-quality rice move in the range of K34,500-K58,000 per bag, Bayintnaung Rice Wholesale Centre’s price data indicated. Meanwhile, the low-quality rice fetches K2,2500-K2,3500 per bag.

Low-quality rice was mostly purchased by Chinese traders yet COVID-19 restriction measures negatively affected the border trade between Myanmar and China. At present, traders turned to maritime trade for rice export. Myanmar shipped rice and broken rice to China, regional countries and European Union countries through maritime trade. Trading in the domestic market is quite sluggish amidst the excess supply.

Myanmar has shipped more than 801,000 tonnes of rice and broken rice to foreign trade partners between 1 October and 30 December in the current six-month mini-budget period (2021-2022), Myanmar Rice Federation stated. Myanmar also generated an income of US$700 million from 2 million tonnes of rice exports to the foreign countries in the past 2020-2021 financial year. About 80,000 bags of rice and broken rice were earlier traded per day at the Bayintnaung Rice Wholesale Centre, whereas the trade volume plummeted to about 30,000 bags.

Source: The Global New Light of Myanmar

The rubber prices have faintly mounted to around K1,200 per pound (0.45 kilogramme), according to the rubber traders. The domestic rubber was priced at below K1,000 per pound in late 30 December 2021. But the price of local 3 rubber fetched K1,150 per pound while the local 3 ribbed smoked sheet (RSS) hit K1,170 pound on 22 January 2022. Due to the market demand and the Kyat revaluation in the local foreign market, the rubber price is still rising in the market, it is learnt. Presently, there is demand from China and the dollar exchange rate against Myanmar Kyat stood at around K2,000 per dollar.

Consequently, although the resumption of the rubber plantation starting from last September and the availability of raw rubber in the market has increased, the price of rubber is unlikely to fall lower than K700 as last year due to the rising market demand and international exchange rate, according to the rubber traders. Nevertheless, the prices of raw rubber materials are unlikely to rise to continue in the future. The local 3 or RSS5 lower quality rubbers are vastly produced in Mon State.

As China is also purchasing these low-quality rubbers mostly, the price is likely to fluctuate around K1,000 per pound, the rubber trader predicted. Regarding the trade route to China, the previously-closed Chinshwehaw border trade post has permitted re-imports of industrial agricultural raw products such as sugarcane, rubber, tragacanth gum herb and cotton, making it easier to export rubber products. Similarly, the Kyinsankyawt border which has been shut down earlier was reopened on 26 November and the rubber is being exported through it. Rubber is primarily cultivated in Mon and Kayin states and Taninthayi, Bago, and Yangon regions in Myanmar.

As per 2018-2019 rubber seasons’ data, there are over 1.628 million acres of rubber plantations in Myanmar with Mon State accounting for 497,153 acres, followed by Taninthayi Region 348,344 acres and Kayin State with 270,760 acres, according to the MRPPA. Besides, about 300,000 tonnes of rubber are produced annually across the country. Seventy per cent of rubber made in Myanmar goes to China. In addition to China, the country also shipped rubber to Singapore, Indonesia, Malaysia, Viet Nam, the Republic of Korea, India, Japan and other countries. In the last FY2020-21, the country generated $449.10 million from the export of raw rubber to foreign countries, according to the official statistics of the Ministry of Commerce.

Source: The Global New Light of Myanmar