Posts in category: TRADING

According to the Yangon Region Chambers of Commerce and Industry, the domestic black bean price has jumped to over K1.08 million per tonne (Bayintnaung Commodity Depot). Although the black bean price on 1 May was K888,500 per tonne, the price jumped to about K1,085,000 per tonne on 4 June, increasing around K200,000 per tonne in only over one month, according to the bean market data.

Black bean price has increased when India, the primary buyer of Myanmar pluses, has redefined black bean, green gram and pigeon pea bean from a restricted commodity to a free import commodity. However, the price has not reached the price that hit K1.3 million per tonne at the end of 2019. Since 2017, India has been setting import quota on beans, including black beans and pigeon peas, under the Indian government plus foreign trade policy for 2015-2020.

At present, the Ministry of Commerce and Industry of India has issued proclamation No. S.O.1858 (E) on 15 May 2021 that the three pluses have been changed from a restricted commodity to a fee import commodity as of 31 October 2021. The black bean plantations yielded around 400,000 tonnes annually in Myanmar, and the bean is mainly exported to India. Similarly, Myanmar has also produced about 50,000 tonnes of pigeon peas yearly and exported them chiefly to India. The black bean, which is mainly bought from India, is grown primarily in Myanmar. Other pluses, including green gram and pigeon pea, are produced in Africa and Australia in addition to Myanmar, according to Myanmar Pulses, Beans and Sesame Seeds Merchants Association.

Source: The Global New Light of Myanmar

Myanmar’s external trade between 1 October and 21 May in the current financial year 2020-2021 plummeted to US$2.1 billion, a sharp drop of over $1 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 $3.2 billion, according to data released by the ministry. Over the past seven months, Myanmar’s export was worth over $9.475 billion, which plunged from $9.8 billion registered a year-ago period.

Meanwhile, the country’s import was valued $11.65 billion, showing a significant decrease of $1.358 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 limited the trading time to contain the spread of the virus. At present, the traders have transaction problem triggered by the restriction of the private banks, 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. Under the National Planning Law for the Financial Year 2020-2021, Myanmar intends to reach an export target of US$16 billion and import at $18 billion. 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

Myanmar average export value for March 2020-2021 financial year reached US$565.33 million, and border export value touched $637.84 million, with total export value coming at $1,203.17 million as a result. Meanwhile, the normal import value for the same period registered at $963.86 million, and border import is pegged at $159.10 million, reaching a total of $1,122.96 million.

As a result, Myanmar total trade value for March 2020-2021FY hit $2,326.13 million, creating a trade surplus of $80.21 million. From October to March of the current 2020-2021FY, Myanmar’s normal export value generated $3,995.57 million and border export reached $3,828.69 million, totalling $7,824.26 million.

The average import value for the same period reached $6,292.21 million, and border import registered at $1,492.93 million, bringing the total to $7,785.14 million. Consequently, Myanmar’s total trade value for the first and second quarter of the 2020-2021FY is pegged at $15,609.40 million, generating a trade surplus of $39.12 million, according to the monthly trade report of the Central Statistical Organization.

Source: The Global New Light of Myanmar

The agricultural exports spike 33.36 per cent to a high of US$3.46 billion in the past seven and half months of the current financial year 2020-2021, despite the downward trend in other export groups amid the banking restriction and the tightened coronavirus containment measures in the border. The figures reflect a significant rise of $866.066 million this FY. According to the trade figures released by the Ministry of Commerce, agro exports topped $2.59 billion in the corresponding period of the 2019-2020FY.

The agricultural exports unexpectedly surge regardless of the impact of the coronavirus on foreign demand for other export groups such as fishery, livestock, mineral, forest products, finished industrial goods and other goods. In the exports sector, the agriculture industry performed the best, accounting for over 22 per cent of overall exports. The top export items in the agricultural industry 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 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. They are currently exported to external markets based on supply and demand. Contract farming systems, regional and state agriculture departments, exporters, traders, and some grower groups are required to meet production targets, said an official from the Agriculture Department. The Commerce Ministry works to help farmers deal with challenges — high input costs, procurement of pedigree seeds, high cultivation costs, and unpredictable weather conditions.

Source: The Global New Light of Myanmar

Bilateral trade between Thailand and Myanmar through the Hteekhee border over the past seven and half months reflected a decrease of $454.9 million against a year-ago period. Between 1 October and 14 May in the current financial year 2020-2021, the figures sharply fell to US$911.4 million from $1.36 million registered in the previous financial year, according to data from the Commerce Ministry.

The surge in coronavirus cases in Myanmar led Thailand to limit truck drivers’ working hours at the border posts. Consequently, the trade via land border between Myanmar and Thailand sharply fell in the current FY. The Ministry of Commerce stated that natural gas exports from the Taninthayi Region have contributed to an enormous increase in trade through the Htikhee border during the previous years.

The border trade between Myanmar and Thailand through the border areas — Myeik, Kawthoung, Mawtaung, Hteekhee and Meisei posts declined as of 14 May. In contrast, trade via Tachilek and Myawady posts rose due to corn exports. Myanmar primarily exports natural gas, fishery products, coal, tin concentrate (SN 71.58 per cent), coconut (fresh and dry), 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. 

Source: The Global New Light of Myanmar

The import value of Myanmar’s machinery and spare are estimated at over US$390.76 million in the first five-month (Oct-Feb) of the current financial year 2020-2021, the Ministry of Commerce’s data indicated. Similarly, the country imported $397.84 million worth vehicles and spare parts. Imports of commercial vehicles and machinery have been
permitted through sea ports and three border gates — Muse, Myawady, and Tachilek. Starting from 1 January, imports of commercial vehicles on a company licence are not allowed. Importers are required to operate a car showroom in line with the prescribed rules and regulations. However, the new policy can pose difficulties for traders conducting business on a manageable scale, said importers.

At present, the market for those vehicles which have been registered and the second-hand cars are leading to a downward trend during the hard financial times. Importing the vehicles will cost a lot owing to the dollar gains in the past three months, double shipping rate and price volatility with tax. The prices of those cars are likely to rise 20 to 30 per cent depending on vehicles’ brands and specifications. Under the 2021 vehicle import policy, 2019 will be the oldest model to be issued an import permit for private cars with non-commercial purpose, according to press release of the Commerce Ministry. Except machinery, all imported vehicles must be left-hand drive under the 2021 vehicle import policy.

When vehicles with less than 1,350 CC engine power are individually imported, the model year must be 2019 and later. Passenger vehicles such as mini-bus, city bus, express bus and commercial trucks manufactured in 2017 and later can be imported. Under FOC Free-of-Charge licence system, fire trucks, ambulances and hearse vehicles manufactured in 2012 or later are allowed for import. Heavy machinery such as excavators, bulldozers, wheel loaders, vibratory rollers, clamp loaders, motor graders, road roller compactors, bridge cranes, gantry cranes, tower cranes, pilling machines, crawler drills/ cranes, mobile cranes, rough-terrain cranes, forklifts, boom lifts and asphalt finishers that cannot be driven on public roads are allowed to be brought into the country as long as they are 15 years old or less.

Source: The Global New Light of Myanmar

General Secretary U Kyaw Soe Naing of the Myanmar Mango Market and Technology Development said that fruit traders transfer money through bus terminals due to money withdrawal restriction from the bank. Earlier, the banks were convenient to deposit and withdraw money. Now, the banks have restricted the withdrawal of cash. Thus, the traders build a strong relationship with the passenger bus drivers and send the money with them, he added. This year, people face a financial crisis. The banks do not allow the clients to transfer the money.

So, they are sending the money through passenger buses. If they want to transfer the money, they cannot use the bank anymore, and we they to transfer money via the bus station. Further, more than thousands of mango loaded trucks are stranded in the Kyin San Kyawt checkpoint on the Myanmar-China border. As a result, the quality of Myanmar mangoes exported to China is declining, and the prices are also dropping dramatically. Previously, if the traders sent the fruits today, the fruits were ready to sell tomorrow. It is an only one day trip.

Now, it takes four or five days on the way to the checkpoint. They are selling the fruits which need to be fresh. The export of Seintalone mango to China has plummeted as China has closed some checkpoints because of COVID-19. Their inspection of the products is taking a longer time than previously. Last year, Seintalone mangoes fetched around 120 Yuans-130 Yuans per 16 kg basket. But this year, the price of Seintalone mangoes dropped down to under 100 Yuans per 16 kg basket. Currently, Myanmar has been exporting around 10 or 15 mango loaded trucks to China daily. Those mangoes are from Sagaing and Katha townships, according to the association.

Source: The Global New Light of Myanmar

According to the bean traders, the farmers should grow more black beans and pigeon peas because the prices of beans are likely to rise higher continuously till the next year because of high demand from India. Next year, we should cultivate more black beans and pigeon peas. These beans need to have fewer inputs and pesticide. Now, these black beans and pigeon peas are likely to fetch a good price until next year. India has also demanded an import bean quota of 400,000 tonnes. At present, the country has around 250,000 tonnes of bean stocks.  There will be a high bean demand in advance until the following year.

So, the bean price is expected to rise next year. The price will be much higher than this year. That is why farmers are urged to give priority to grow more black beans and pigeon peas, Vice-Chair U Chone of the Mandalay Commodity Depot elaborated. After harvesting paddy, the black beans are grown in October, November and December. The black beans are grown chiefly in Bago and Ayeyawady regions. The upper parts of Mandalay and Magway regions also grow a few acres of black bean. The pigeon peas are also cultivated across the country and produced mainly in central Myanmar.

The prices of black beans and pigeon peas are dependent upon the demand of India. In 2017-2018FY, India produced sufficient beans for their country. Thus, the price of Myanmar bean dropped to K97,000 from K120,000 in 2015.  Since 2017, we are now seeing the lowest price of Myanmar bean. A bean bag containing three baskets was sold for K25,000 or 30,000. Last year, climate change in India destroyed their pulses plantations. Therefore, India is buying Myanmar beans, especially the black beans and pigeon peas, he added. On 28 May, the prevailing price of black bean is ranging K100,000-K130,000 per 60 visses while the pigeon peas are pricing around K86,000-K95,000 per 60 visses, according to the Mandalay Commodity Depot.

Source: The Global New Light of Myanmar

Myanmar Customs Department’s statistics showed corn exports to foreign countries had generated over US$246.9 million in the first five months (October-February) of the current financial year 2020-2021. Myanmar corn exports by sea have come to an end due to the lack of demand, Chair U Min Khaing of the Myanmar Corn Industrial Association said. Myanmar has been delivering corns to the neighbouring countries Thailand and China via the land border. The shipment to Singapore, Malaysia and Viet Nam abruptly stopped owing to zero demand, he added. The lack of demand by sea is attributed to the political changes and disruption in the logistic sector. Myanmar is conveying corns to Thailand through the land border, with a tonne of maize fetching up about 8,000 baht. As Myanmar revoked the two-per-cent withholding tax exemption on corn exports during the new wave of coronavirus, the corn price is expected to fall, he added.

The withholding tax exemption status for corn exports to Thailand duly expired amid the pandemic. The two per cent WHT had to be paid starting from 1 May. The two per cent WHT was levied on corn exports through the land border. During the pandemic, the tax was temporarily exempted. At present, the exempt status is revoked. Consequently, the lower commodity price is likely to happen. Thailand gives the green light to corn imports through Maesot under zero tariff (with Form-D), between 1 February and 31 August. Thailand has granted tax exemption on corn imports between February and August. However, Thailand imposed a maximum tax rate of 73 per cent on corn import in order to protect the rights of their growers if the corns are imported during the corn season of Thailand, as per the notification of the World Trade Organization regarding corn import of Thailand, said a corn exporter.

With the local corn consumption growing, Myanmar’s corn export to foreign markets is expected to reach 1.6 million tonnes this year, the association stated. Myanmar is the second-largest exporter of corn among regional countries. 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 yearly produces 2.5-3 million tonnes of corns. The corn crop is mostly demanded by the feedstuff processing business. Therefore, it is the potential business for both domestic and external markets, said an official of the Ministry of Commerce. During the last FY2019-2020 ended 30 September, the country exported 2.2 million tonnes of corns to the external market, with an estimated value of $360 million, the Ministry of Commerce’s data showed. As per data from the Ministry of Commerce, Myanmar exported 1.5 million tonnes valued at $270 million in the 2018-2019FY, 1.4 million tonnes of corn worth over $290 million in the 2017-2018FY, 1.2 million tonnes of corn worth $250 million in the 2016-2017FY, and, 1.1 million tonnes of corn worth $300 million in the 2015-2016FY. 

Source: The Global New Light of Myanmar

Thousands of trucks on both sides of the border have been stranded due to China’s strict regulations at the Kyinsan-Kyawt Gate, an official gateway to Myanmar-China trade, and prices have fallen by more than half from last year due to delays in the flow of other goods, including 450 perishable mango trucks. Sai Khin Maung, vice-chairman of the Muse 105 Mile Fruit and Vegetable Commodity Exchange, said that mango trucks imported from Myanmar to China are currently facing delays in the quality of mangoes due to delays in entering China. Currently, it is ripened due to delays on the road. In fact, within two days of delivery, they can still get at most three days of convenient fruit. Now, four or five days later, the quality is down and out of stock. About 450 vehicles were stranded on Pansai Road. Today, about 70 vehicles could not get off at the 105-mile orchard due to the lack of roads. Due to this delay, the price of mangoes in the mango market is between 10 yuan and 50 yuan per hint. A Sein-ta-lone mango costs between 25 and 70 yuan, and a mango truck costs 1,900 kyats from Mandalay to China’s Wanding Orchard.

Last year, despite the outbreak of COVID-19 disease, a sein-ta-lone mango fetched more than 100 yuan per mango, and a gold mango costs more than 100 yuan. This year, fruit trucks have been delayed due to delays in arriving at the Wanding orchard. According to Daw Nwe Nway of the Lin Tun Fruit Festival, the price of mangoes imported from Myanmar to China is falling due to better mango production in China than last year. It took four or five days to enter the Wanding Fruit Market, but the quality of the mangoes was declining and the price was not high. Another thing is that China produces a lot of mangoes this year. Depending on the quality, a hint of gold costs between 10 and 50 yuan. A diamond mango costs between 25 and 70 yuan. The mango truck fare is 1,600 kyats from Mandalay to 300 kyats per truck from Wanding Orchard in China, 105 miles from Muse. 

The total cost of medical examination and spraying is 1,900 kyats. Tens of thousands of trucks are now congested at the Qingxuan Gate due to strict Chinese regulations, and queues for between seven and 10 days have been delayed and freight has been delayed. There is a delay because fruit trucks have to miss the nearest exit, Kyin San Kyaw Road. People can only enter from Pansai. In Pansai, there are a lot of cars and raw materials are not given priority over dry goods. It’s like going on par with dry goods. There are many losses. Farmers will have to export harvested plants. People should come and inquire about the condition of the road. At present, the Chinese side is using the Covid disease as a pretext for border trade between Myanmar and China. Myanmar-Chinese import vehicles have been congested at the entrance to Kyin San Kyaw Gate since mid-February, when gates such as the Royal Gate, Naungdaung Gate and Chin Shwe Gate were closed. Recently, the Chinese side tightened inspections at Kyin San Kyawt Gate due to Covid disease, causing delays in exporting Myanmar watermelons and returning to Myanmar, which was delayed due to poor management by the Myanmar side.

Source: Daily Eleven