Posts in category: TRADING

Myanmar’s trade with foreign countries through land borders reached over US$ 545.86 million as of 5 November in the mini-budget year of 2021-22 or a transition period from October to March this year, according to figures released by the Commerce Ministry. The total border trade value as of 5 November includes $375.5 million in export and $170.4 million in imports.

Compared with the same period of last year, the export earnings dropped by $487.11 million while the import value fell by $45 million. Myawady topped the list of border checkpoints with the most trade value of $242.51 million, followed by Hteekhee with US$1.41.77 million. From 1 October to 5 November 2021, the country’s foreign trade totalled over $2.5 billion, while its sea trade is valued at over $2 billion, according to the ministry.

The country conducts border trade with neighbouring China through Muse, Lwejel, Kampaiti, Chinshwehaw and Kengtung with Thailand via Tachilek, Myawady, Kawthoung, Myeik, Hteekhee, Mawtaung and Meisei crossings, with Bangladesh via Sittway and Maungtaw and with India through Tamu and Reed border posts, respectively. Myanmar mainly exports agricultural products, animal products, marine products, minerals, forest products, manufacturing goods and others while capital goods, intermediate goods and consumer goods are imported to the country. 

Source: The Global New Light of Myanmar

The value of Myanmar’s seafood exports as of 5 November in the current mini-budget period (October 2021 March 2022) was estimated at US$89.88 million, which increased slightly from $78.35 million in the corresponding period of the last financial year 2020-2021. Myanmar Fisheries Federation (MFF) is attempting to grow fishery export regardless of the COVID-19 disruption on maritime trade, closure of border gates and fuel oil price instability. Despite the open season of offshore fishing, Myanmar’s fishery export industry is facing a series of challenges such as the oil price hike, surge in container shipping rate, the closure of border posts, disruption on maritime trade and the COVID-19 negative impacts. Consequently, it will harm the export sector somehow in the long term.

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, Mawlamyine Commodity Centre stated. The marketable fish products, especially fish, shrimp, eel and crab from Taninthayi andAyeyawady 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. The federation is turning to the Bangladesh market with export potentials at present. MFF is working together with the stockholders in the supply chain to have sustainable export growth in the industry.

The fishery exports through the Sino-Myanmar border have ground to a halt following the consequences and safety measures on the imported seafood amid the COVID-19 pandemic, traders stressed. Myanmar’s fishery export was experiencing a downturn due to the import restrictions triggered by the detection of the COVID-19 on fish imports in China. Chinese market constitutes about 65 per cent of Myanmar’s fishery exports. China accounted for US$254 million out of the overall fishery export value of over $850 million in the FY 2019-2020. At present, China shut down the border areas in wake of the COVID surge in Myanmar. Myanmar Fisheries Federation stated that only the G2G pact can tackle problems faced in the export of farm-raised fish and prawns and ensure smooth freight movement between countries to bolster exports.

The MFF is making concerted efforts to increase fishery export earnings by developing fish farms that meet international standards and adopting advanced fishing techniques. To ensure food safety, the foreign market requires suppliers to obtain Hazard Analysis and Critical Control Points (HACCP) and Good Aquaculture Practices (GAqP) certificates. To meet international market standards, fishery products must be sourced only from hatcheries that are compliant with GAqP. The MFF is working with fish farmers, processors, and the Fisheries Department under the Ministry of Agriculture, Livestock, and Irrigation to develop the GAqP system. Processors can screen fishery products for food safety at ISO-accredited laboratories under the Fisheries Department. 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 2020-September 2021), Myanmar shipped $784.889 million worth of seafood, the Ministry of Commerce’s data showed.

Source: The Global New Light of Myanmar

The value of agricultural exports was registered at US$315.04 million as of 5 November in the current mini-budget period (Oct 2021-March 2022), as per the statistic of the Ministry of Commerce. The figures reflect a decrease of $28.49 million. The agro exports stood at $343.53 million in the corresponding period of the 2020-2021 FY as the main trade partner China shut down all the borders in wake of COVID-19 negative consequences, according to the trade figures released by the Ministry of Commerce. Last month, 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, and other agro products are also shipped to other countries. Myanmar’s agro products are primarily exported to China, Singapore, Malaysia, the Philippines, Bangladesh, India, Indonesia, and Sri Lanka. Sometimes, the export market remains uncertain due to unsteady global demand.

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 quality 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 imports between 1 and 29 October of the current mini-budget period 2021-2022 (October-March) sank to $1 billion, which reflects a drop of $121.98 million compared to the year-ago period, the Ministry of Commerce’s data indicated. The import value stood at US$1.12 billion the last FY2020-2021. The imports of capital goods declined last month, while the other import groups (consumer, intermediate goods, and CMP businesses) witnessed a slight increase.

Last month, capital goods, such as auto parts, vehicles, machines, steel, and aeroplane parts were brought into the country. Their import value was estimated at $170.18 million. The figurewas over $229.5 million lower than those values registered in the same period of the previous FY. Meanwhile, Myanmar imported consumer products worth $262.38 million, including pharmaceuticals, cosmetics, and palm oil. The imports of consumer products showed a slight decrease of $3 million compared with the same period in the previous FY.

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 climbed up to $413 million from $326.4 million registered during the year-ago period. During the same period, raw materials worth over $153 million were also imported for the Cut-Make-Pack (CMP) garment sector, showing an increase of $26.48 million compared with last FY. 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 of the Ministry of Commerce.

Source: The Global New Light of Myanmar

The price of rubber is unlikely to drop as long as there is a steady demand and Kyat devaluation against the US dollar continues, according to rubber traders. The rubber was offered at a minimum price of K700-K800 per pound in the previous years, whereas it is priced at about K970-K980 per pound at present. The price hit above K1,000 per pound in early October 2020. Then, it dipped slightly owing to the Kyat revaluation in the local forex market. Despite the drop in rubber price, the prices of cement, acid and other inputs used in rubber processing are rising, traders said.

Chinese authorities from Yunnan Province, which is close to Myanmar’s Chinshwehaw border in Shan State, gave the go-ahead to import the four industrial crops from Myanmar, including sugarcane, rubber, tragacanth gum and cotton. As a result of this, the trade channel is reopened again. The rubber price is possible to fluctuate around K1,000 per pound. China usually purchases Local 3 and RSS 5 varieties which are mainly produced in Myanmar, a trader shared an opinion. The rubber-tapping season started in September and the natural rubber is flowing into the market.

However, the price is not possible to fall to K700-K800 per pound on account of growing demand and Kyat depreciation on the US dollar. Rubber is primarily produced in Mon and Kayin states and Taninthayi, Bago, and Yangon regions in Myanmar. As per the 2018-2019 rubber season’s 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 with 348,344 acres and Kayin State with 270,760 acres. About 300,000 tonnes of rubber is produced annually across the country. Seventy per cent of rubber produced in Myanmar goes to China. It is also shipped to Singapore, Indonesia, Malaysia, Viet Nam, the Republic of Korea, India, Japan, and other countries, according to the Myanmar Rubber Planters and Producers Association. Myanmar’s rubber export generated more than US$425.25 million as of August (October-August) of the financial year 2020-2021.

Source: The Global New Light of Myanmar

Myanmar’s trade gap has significantly narrowed to US$46.6 million between 1 and 29 October of the current mini-budget period 2021-2022 (Oct-Mar) from just $63.05 billion registered in the corresponding period of the 2020-2021 FY, according to data provided by the Ministry of Commerce. The decrease in trade deficit is attributed to the drastic drop in imports in October 2021. Last month, Myanmar’s external trade plummeted to $1.95 billion from $2.18 billion recorded in the year-ago period. While exports were estimated at $953.37 million, imports were valued relatively high at $10 billion this mini-budget period.

Compared to the FY 2020- 2021, exports showed a drop of over $105.59 million, while imports fell by $121.9 million. Myanmar witnessed a slump in exports and imports triggered by the coronavirus impacts. Myanmar’s maritime trade climbed up yet the country witnessed drop in border trade amid the coronavirus impacts and political changes. The neighbouring countries tighten the border security and restrict the 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.

The country’s export sector relies much on the agricultural and manufacturing sectors. The Ministry of Commerce is trying to reduce the trade deficit by screening luxury import items while boosting exports. The country mainly imports essential goods, construction materials, capital goods, hygienic material and supporting products for export promotion and the import substitution. Myanmar’s trade deficit was pegged at $1.3 billion in the 2019-2020 FY, $1.14 billion in the 2018-2019 FY, $1.3 billion in the previous mini-budget period (April-September, 2018), $3.9 billion in the 2017-2018 FY, $5.3 billion in the 2016-2017 FY, and $5.4 billion in the 2015-2016 FY, according to statistics released by the Central Statistical Organization.

Source: The Global New Light of Myanmar

The value of Myanmar’s maritime trade between 1 and 22 October of the current mini-budget period for 2021-2022 climbed up to US$1.166 billion, which reflected an increase of $115 million as against the last FY. The figures rose from $1.05 billion during the year-ago period, according to the Ministry of Commerce. While maritime exports were valued at $560 million, imports have registered $300.45 million.

Compared to the same period in the 2020-2021 financial year, imports fell by $144.7 million, while exports registered an increase of $259.7 million. Meanwhile, the value of trade through the border this FY was estimated at $234.9 million, which plunged drastically from $613 million registered last FY. Myanmar’s sea trade generated $19.8 billion out of an overall trade value of $29.5 billion in the last FY2020-2021, the Ministry of Commerce’s statistics indicated.

Myanmar exports agricultural products, fishery products, minerals, livestock, forest products, finished industrial goods, and other products, while it imports capital goods, consumer goods, and industrial raw materials. The country currently has nine ports involved in sea trade. Yangon Port is the main gateway for Myanmar’s maritime trade and includes the Yangon inner terminals and the outer Thilawa Port. Yangon inner terminals and the outer Thilawa Port received over 152 larger ships of above 30,000 DWT (deadweight tonnage) in the past five months (February-June) this year after the draft limit is extended up to 10 metres with the new navigation channel accessing to inner Yangon River. 

Source: The Global New Light of Myanmar

Myanmar’s external trade as of 22 October in the current mini-budget year 2021-2022 (Oct- March) sank to US$1.4 billion, which shows a drastic drop of $263 million as against the year-ago period, the Ministry of Commerce’s data showed. The international trade stood at over $1.66 billion in the corresponding period of last FY 2020-2021, according to data released by the ministry.

This month, Myanmar’s export was worth over $697 million whereas, the country’s import was relatively low at $703.68 million. The border trade dropped owing to the closure of border post by the main trade partner China amid the coronavirus impacts. However, the maritime trade was registered an increase of $115 million. At the present time, the traders have transaction problem triggered by the restriction of the private banks.

Myanmar exports agricultural products, animal products, minerals, forest products, and finished industrial goods, while it imports capital goods, raw industrial materials, and consumer goods. 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 and market diversification. The external trade stood at $29.58 billion in the 2020-2021 FY, as per the Commerce Ministry’s statistics.

Source: The Global New Light of Myanmar

Myanmar’s exports of animal products in the financial year 2020-2021 touched a low of US$18.8 million, a sharp drop of $88.9 million compared with the corresponding period of the 2019-2020FY since livestock trading was suspended by China. In the 2019-2020FY, animal products exports were registered at $107.7 million. Animal products exports are solely driven by the private sector. Live cattle trade is booming on Myanmar’s black market, with 2,000 heads of cattle daily sent to China, said U Soe Naing, chair of Mandalay Region Cattle Exporters Association. Chinese traders are constantly purchasing cattle on the black market across the border between Myanmar and China, despite the suspension of cross-border trade. At present, the black market has been stronger. The legitimate market has halted since late 2020.

Following about 15,000 heads of cattle stranded in Muse last year, traders embarked on illegal sales. Around 6,000 heads of cattle are still stuck in Muse, he continued. For legitimate trade, China permits live cattle import only after ensuring the cattle is free from 20 diseases, including Foot and Mouth Disease, along with vaccination certificates, health certificates, and farming registration certificates. Those import criteria do not matter on the black market. Myanmar’s live cattle export is heavily relying on the China market due to a good price although Myanmar has other external markets such as Laos, Thailand, Malaysia and Bangladesh. The Ministry of Commerce grants a permit to each company for 100 cattle export and the permit is valid for three months.

The companies can be taken legal action if they do not sell the cattle during the three months. Live cattle export was allowed in late 2017, with a view to eradicating illegal exports, creating more opportunities for breeders and promoting their interests. The country exports cattle that are above five years old, along with vaccination certificates, health certificates, and farming registration certificates. According to the 2018 cattle census, there are 11.5 million heads of cattle in the country. The authorities have issued cattle export licences to more than 300 companies in the Magway region. There are around 5,000 companies holding cattle export licences across the country. Since 2017, Myanmar has exported more than 540,000 heads of cattle beyond domestic consumption, the association stated. The Ministry of Agriculture, Livestock and Irrigation will also strive for investments in dairy farming and value-added production businesses.

Source: The Global New Light of Myanmar

Myanmar’s trade with neighbouring countries through land borders reached over US$135 million as of 15 October in the mini-budget year of 2021-2022 or transition period from October to March this year, according to figures released by the Commerce Ministry.

During the period, the country’s export via border gates amounted to $60.21 million while its import shared $75.07 million. This financial year’s border trade decreased by over $358 million, compared to the same period of last FY when it amounted to $493.48 million, the ministry’s figures said.

Myawady topped the list of border checkpoints with the most trade value of $102.05 million, followed by Kawthoung with $13.41 million. Myanmar mainly exports agricultural products, animal products, marine products, minerals, forest products, manufacturing goods and others to foreign trade partner countries while capital goods, intermediate goods and consumer goods are imported into the country.

The country conducts border trade with neighbouring China through Muse, Lwejel, Kampaiti, Chinshwehaw and Kengtung; with Thailand via Tachilek, Myawady, Kawthoung, Myeik, Hteekhee, Mawtaung and Meisei border checkpoints, with Bangladesh via Sittway and Maungtaw and with India through Tamu and Reed border crossings, respectively.

Source: The Global New Light of Myanmar