Posts in category: TRADING

Myanmar exported more than 136,632 tonnes of pigeon peas to the foreign trade partners between 1 October and 26 June in the current financial year 2020-2021, according to the Ministry of Commerce’s trade data. The country generated an income of US$91.54 million from the exports of pigeon peas in nearly nine months. At present, the price of pigeon peas in India is declining on steady inflow from Ethiopia, Tanzania, Malawi and Sudan. The pigeon peas fetch around K1,080,000-1,120,000 per tonne depending on varieties. The demand is quite slow, said an exporter. Myanmar’s pigeon peas are primarily shipped to India and also exported to Singapore, the US, Canada, Pakistan, the UK, and Malaysia. But, the export volume to other countries rather than to India is extremely small.

The domestic bean market is positively related to the law of supply and demand, said an official of Myanmar Pulses, Beans and Sesame Seeds Merchants Association. Myanmar can export 250,000 tonnes of black gram (urad) and 100,000 tonnes of pigeon peas under the G to G (government to government) pact during the April-March period between the 2021-2022 financial year and the 2025-2026 FY. The bilateral negotiations for the G-to-G pact started in 2016 and the two countries signed an MoU on 18 June 2021. Additionally, this G-to-G pact will not relate to India’s yearly quota on bean import. Therefore, Myanmar exporters can ship them under this quota as well. Since 2017, India has been setting import quota on beans including black grams and pigeon peas.

Therefore, the growers faced difficulties to export their beans to the Indian market in the previous years. This year, the G-to-G pact ensured a strong market next five years, along with other relaxations on import quota, Myanmar Trade Promotion Organization under the Ministry of Commerce stated. In the 2017-2018FY, over a million tons of black grams, pigeon peas, and green grams were shipped to foreign countries. Nevertheless, the earnings were registered at just $713 million owing to the price drop. Myanmar shipped over 1.6 million tonnes of different varieties of pulses, especially black grams, with an estimated worth of US$1 billion, to other counties in the FY2018-2019. During the last FY2019-2020 ended September 30, the country delivered 1.6 million tonnes to external market, generating an export value of $1.195 billion. 

Source: The Global New Light of Myanmar

Bilateral border trade stood at over US$32.89 million as of 25 June in the current 2020-21 financial year, which saw a decrease of $17.7 million from the corresponding period of last year, according to the Ministry of Commerce. The border trade during the period has dropped by $17.7 million, compared with that of the same period last year when the total bilateral border trade was only $50.6 million.

The country’s exports to Bangladesh totalled $14.28 million, while its imports were $18.6 million. Myanmar exports goods to Bangladesh through both maritime and land routes. Bilateral border trade is conducted mainly through the Sittway and Maungtaw points of entry.

The products traded between the two countries include bamboo, ginger, peanuts, saltwater prawns and fish, dried plums, garlic, rice, mung beans, blankets, candy, plum jams, footwear, frozen foods, chemicals, leather, jute products, tobacco, plastics, wood, knitwear, and beverages. At present, Myanmar’s border trade with four neighbouring countries—China, India, Thailand and Bangladesh totalled $7.65 billion, shared by $4.98 billion in export and $2.66 billion in imports. 

Source: The Global New Light of Myanmar

With China stepping up border security for COVID-19, live cattle trading has ground to a halt, and about 7,000 cattle have been stranded in Muse town since December 2020. The domestic companies are sending cattle in line with Standard Operating Procedure to China through the Muse border. Before COVID-19, cattle were highly demanded. During the early outbreak of coronavirus, about 10 traders from China entered Myanmar to purchase over 1,000 herds of cattle per day. The resurgence of COVID-19 in Myanmar prompted China to tighten its border areas with Myanmar. Consequently, it was seven months that live cattle trading was halted. The traders are facing many hardships as it is difficult to take care of the cattle in yards during the rainy season. The traders have been burdened by labour wages, cost of feedstuff, healthcare services, and other general costs.

Furthermore, Chinese traders are constantly purchasing the cattle on the black market across border between Myanmar and China, said Chair U Soe Naing of the Mandalay Region Cattle Exporters Association. At present, the black market has been stronger. The legitimate market has halted since late 2020. The illegal market is happening. At present, the border trade is illegally carried out like the trade four years ago. Following about 10,000 cattle stranded in Muse last year, traders embarked on the illegal sales, 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. Yet, those import criteria do not matter on the black market.

That is why Mandalay Region Cattle Exporters Association requested the officials concerned to deal with this black market and strive for resumption of the cattle trade. Myanmar’s live cattle export is heavily relying on 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 to eradicate illegal exports, creating more opportunities for breeders, promoting their interests and generating more revenues. Myanmar shipped US$360 million worth of animal products, including cattle, to the external markets in the financial year 2018-2019. The value of animal product exports dropped by $100 million in the 2019-2020 FY as against a year-ago period, following negative impacts of COVID-19. 

Source: The Global New Light of Myanmar

Watermelon growers flooded markets with excess supply this year and led to a market failure. Consequently, they are suggested to reduce the sown acreage acres by 50 per cent for the coming season, cross-border fruit depots stated. This year, about 30,000 trucks of watermelon and 12,000 trucks of muskmelons were conveyed to China via the land border. Nevertheless, a thousand trucks went in vain as they stranded in the road part, affecting the quality of the fruits. Some watermelons have been disposed of as well. The exports of watermelon drastically plunged as against last year as watermelon supply is exceeding the demand and transport delay triggered by the heightened COVID-19 measures in the border areas harm the quality of the fruits. As a result of this, the traders are encouraged to keep market balance and maintain the quality, Khwar Nyo Fruit Depot stated.

As China is stepping up the coronavirus containment measures in the border areas, the exporters of agricultural products including watermelon are suffering amid the COVID-19 resurgence. This year, some watermelon trucks returned from the Myanmar-China North-East border checkpoint as the watermelon was not traded well and the truck drivers were no longer bear the cost and tariff on the China border. Additionally, starting from 20 April 2021, the coronavirus test is mandatory for cross-border traders. Following the detection of the coronavirus cases in border Ruili, China restricted border access at the Man Wein checkpoint. Ruili-Kyalgaung river crossing has been also closed. Only Kyinsankyawt post is available for cross-border trade, causing delays and long queues. It takes about a month for a truck to enter the checkpoint.

As a result of this, the cross-border fruit depots suggest that the growers harvest the watermelon depending on the market condition to avoid a mismatch between supply and demand. A truckload of watermelon (855 variety) fetches 45,000-65,000 Yuan in mid-March. The price drastically plunged to 13,000 Yuan in mid-May and it does not even cover the truck freight rate. Myanmar’s watermelon market earlier relied only on China. Myanmar shipped 45 tonnes of seedless watermelon to the Dubai market in December 2020 and January 2021. After the country achieves success in the Dubai market, Myanmar has a plan to expand its market to Hong Kong SAR, the UAE and Qatar, the association stated. On 5 January 2021, 105th mile Fruit Wholesale Centre released a statement that the number of watermelon and muskmelon trucks for exports is to be set to govern the market. Myanmar yearly exports over 800,000 tonnes of watermelon and about 150,000 tonnes of muskmelons to China, the association stated. 

Source: The Global New Light of Myanmar

Myanmar’s rice export to China through the Muse border checkpoint has plummeted recently, said U Min Thein, the vice-chair of Muse Rice Wholesale Centre. The drop was due to the closure of the Man Wein checkpoint, which is the major place for the trading of rice and broken rice between Myanmar and China following the outbreak of COVID-19 positive cases. With the closing of the Man Wein land border crossing, the export stuff including rice and broken rice are being traded through China via the Kyin San Kyawt checkpoint. Earlier, Myanmar exported about 30,000 bags of rice and broken rice to China daily. But now, only about 10,000 bags have been exported. Previously, about 70 truckloads of rice and broken rice were traded daily through the Man Wein post. Now, only 24 truckloads are being traded.

The export has dropped one third. If three truckloads were used to go earlier, only one truckload will go now. Earlier, about 30,000 bags of rice and broken rice were traded through the Man Wein crossing whereas now only 10,000 bags are being traded through Kyin San Kyawt checkpoint. Currently, the price of the Muse market is 117 Yuans for a bag of broken rice, 128 Yuans for Nga Sein, 129 Yuans for Thuka and 137 Yuans for Shin Tone, according to the Muse Rice Wholesale Centre. The Man Wein land border has been closed for over one month because of the outbreak of COVID-19 and it has not been planned to reopen yet, according to Muse 105th Trade Zone, the Trade Department under the Ministry of Commerce. With the declining number of COVID-19 positive patients in the Kyalgaung area, the lockdown restrictions imposed on the Kyalgaung area were lifted starting from 4 May.

But, the observation is still going on for another three more months. As a result, the Man Wein border post has not been planned to reopen, according to the announcement of the Muse 105th Mile Trade Zone, the Trade Department on 5 May. In addition, in coordination with the Shweli Foreign Relations Department, the Man Wein crossing has not been reopened yet and it will be reopened only after having the detailed plan, according to the statement. The relevant traders will also be informed if there is an official notification from China to reopen the land border crossing. Moreover, China’s customs authorities granted rice export licences to 47 Myanmar companies on 26 February 2021, according to the Muse Rice Wholesale Centre. This year, China government has allowed more rice export licences to more companies.

So, the volume of rice export will increase this year compared to that of the previous year, according to the Muse Rice Wholesale Centre. During the first three months of the current financial year, Myanmar exported over 720,000 tonnes of rice and broken rice worth over US$275 million, according to Myanmar Rice Federation. However, Myanmar has expected to export only 2 million tonnes of rice this FY because the weather changes have affected irrigation water and consequently, summer paddy cultivation will have to be reduced, President U Ye Min Aung of the Myanmar Rice Federation (MRF) said. Myanmar generated over US$800 million from rice export in the previous FY–2019-2020 ending 30 September with an estimated volume of over 2.5 million tonnes. 

Source: The Global New Light of Myanmar

The total land border trade value at 18 trade camps exceeded US$7.4 billion till 18 June 2021, according to the Ministry of Commerce. From 1 October to 18 June of the 2020-21FY, the total border trade value amounted to $7.434 billion, down $806 million compared with the same period last year.

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 land border crossings, with Bangladesh via Sittway and Maungtaw, and with India through Tamu and Reed land border checkpoints, respectively.

Muse trade camp in Myanmar-China border reached $3.75 billion, down over $616 million with the same period last year. Myanmar’s major export items are farm, animal, marine, forest, mining, CMP and other products. The country mainly imports capital goods, industrial raw materials, personal goods and CMP raw materials. 

Source: The Global New Light of Myanmar

Myanmar’s external trade between 1 October and 18 June in the current financial year 2020-2021 plummeted to US$21.48 billion, a sharp drop of 5.69 billion compared with the corresponding period of the FY2019-2020, according to the Ministry of Commerce. During the same period in the previous FY, the trade stood at $27 billion, according to data released by the ministry. Over the past eight and half months, Myanmar’s export was worth over $10.6 billion, which plunged from $12.8 billion registered a year-ago period. Meanwhile, the country’s import was valued $10.8 billion, showing a significant decrease of $3.5 billion compared with the last FY.

Both sea trade and border trade dropped amid the coronavirus impacts. The neighbouring countries tightened the border security and limit the trading time to contain the spread of the virus. At present, the traders have transaction problems triggered by the restriction of the private banks. Furthermore, the pandemic triggered the cargo shipping crisis, a market observer shared his opinion. 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 government is trying to reduce the trade deficit by screening luxury import items and boosting exports. The Ministry of Commerce is focusing on reducing the trade deficit, export promotion and market diversification. Since 2011, the Ministry of Commerce has adhered to its reform policy. A series of moves to liberalize and open the economy have been introduced through policy development to improve the trade environment. The external trade stood at $36.73 billion in the 2019-2020FY, $35.147 billion in the 2018-2019FY, $18.728 billion in the 2018 six-month interim period, $33.578 billion in the 2017-2018FY and $29.209 billion in the 2016-2017FY, respectively, as per the Commerce Ministry’s statistics.

Source: The Global New Light of Myanmar

The value of Myanmar’s maritime trade over the past eight and a half months (1 Oct-18 June) of the current financial year 2020-2021 sank to US$14 billion, which is a 25 per cent drop compared with the same corresponding period of last year. The figures plunged from $18.9 billion during the year-ago period, according to the Ministry of Commerce. While maritime exports are valued at $5.8 billion, imports have registered at $8.243 billion. Compared to the same period in the 2019-2020 financial year, imports fell by $3.59 billion, while exports have registered a decrease of $1.29 billion.

The maritime trade fell by $4.89 billion as of 18 June as against last year. Meanwhile, the value of trade through the border this FY was estimated at $7.43 billion, a decrease of $806 million as against a year-ago period. Myanmar witnessed a slump in exports and imports triggered by the coronavirus pandemic. Both sea trade and border trade dropped amid the coronavirus impacts and the political changes. For maritime trade, disruption in the logistic sector and cargo shipping crisis triggered by the COVID-19 impacts scaled-down the maritime trade somehow.

The country’s total external trade over the past eight months touched a low of $21.48 billion, which plunged from $27 billion recorded in a year-ago period. Myanmar’s sea trade generated $26 billion out of an overall trade value of $36 billion in the last FY2019-2020, 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 raw industrial materials. The country currently has nine ports involved in sea trade. Yangon Port is the main gateway for Myanmar’s maritime trade. It includes the Yangon inner terminals and the outer Thilawa Port.

Source: The Global New Light of Myanmar

Muse border trade fell by half in June this year as against last year, said U Min Thein, vicechair of Muse Rice Wholesale Centre. After the detection of the coronavirus cases in the Sino-Myanmar border areas, Man Wein, a major border crossing between Muse and Kyalgaung areas, came to an abrupt halt on 30 March, the vice-chair of Muse Rice Wholesale Centre said. Traders have to send goods, including rice and broken rice, various pulses and beans, fishery products, onion, chilli and other export items to China via the Kyinsankyawt checkpoint due to the closure of the Man Wein post.

The freight transport through Mandalay-Muse route to China takes at least a month, causing delay and heavy traffic congestion. Consequently, the trade dropped 50 per cent in June 2021 compared to the same corresponding period of last year. The Man Wein border closure is possibly to be extended even after three months shutdown, Muse Rice Wholesale Centre stated.

Additionally, Man Wein border post is not available for now according to the negotiation with Shweli’s Foreign Affairs Department. The border post will resume the trade only after drawing up a detailed project report, the Trade Department (Muse 105th mile trade zone) stated. Once Chinese authorities notify the Trade Department of the reopening of the border post, the traders will be apprised of this. At present, Myanmar conducts border trade with China via five posts; Muse, Lwejel, Chinshwehaw, Kampaiti and Kengtung. Of them, Muse border post performed the best.

Source: The Global New Light of Myanmar

The COVID-19 pandemic triggered a cargo shipping crisis, hindering palm oil import, said U San Lin, chair of Myanmar Edible Oil Dealers’ Association. The cargo shipping disrupted the palm oil import. The resurgences of COVID-19 infections in India raised concerns and hit the shipping industry hard. Additionally, the bank-ing restrictions imposed difficulties to exporters and importers. At present, the domestic palm oil price has slightly declined, tracking the import price retreat, said U San Lin, chair of Myanmar Edible Oil Dealers’ Association. The price of palm oil fell to US$995 per tonne in the international market.

Consequently, it ranges K2,800-2,900 per viss (a viss equals 1.6 kg) in the domestic wholesale market. The oil palm trees produce fruits in abundance this time. The price is likely to be in the bull market up to October if any trade barrier will not occur. In early January 2021, production slump in importing countries Malaysia and Indonesia, caused by erratic weather conditions and the COVID-19 impacts, high imports by certain countries under tax reduction, a tax hike on exports in producing countries and the short storage of palm oil in those countries contributed to the rise in edible oil price.

The palm oil price stood at $1,055-1,200 per tonne in the foreign market. Myanmar Edible Oil Dealers’ Association issued a notice in January to import palm oil from foreign countries sustainably for self-sufficiency and distribute edible oil at a fair price to consumers. So it would ensure that there will be no edible oil shortage in regions and states when there is a rise in imported oil price. 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. About 700,000 tonnes of cooking oil are yearly imported in order to meet the self-sufficiency in the domestic market.

Source: The Global New Light of Myanmar