Posts in category: TRADING

Myanmar has generated US$386 million income from exports of rice and broken rice in the first-five months (Oct-Feb) of the current financial year 2020-2021, according to Myanmar Customs Department. At present, rice shipment to European countries is declining. However, Myanmar is constantly delivering rice and broken rice to China and Bangladesh. The market cools down for now due to the transport difficulties and dollar gains. The price is quite stable with the sluggish trade.

Next, China’s Customs granted licences to 47 Myanmar companies on 26 February 2021 to legally export the rice to China through Muse land border this year. The authorized companies for rice export to China increased this year as against last year. However, the permitted volume of rice for exports has not been confirmed yet, said U Min Thein, vice chair of Muse Rice Wholesale Centre. Myanmar traders are sending rice to China through Muse border under new permits at the present time.

Nevertheless, limited money withdrawal permitted by the private banks is disrupting the rice exports. Myanmar set the rice export target at only 2 million tonnes in the current FY as summer paddy growing acreage drops, said U Ye Min Aung, President of Myanmar Rice Federation (MRF). Weather changes affected irrigation water resource availability on agriculture. Consequently, the export figures showed a drop of 300,000 tonnes of rice in exports this year. Myanmar generated over $800 million from rice exports in the previous FY2019-2020 which ends 30 September, with estimated volume of over 2.5 million tonnes.

Source: The Global New Light of Myanmar

Myawaddy Trade Zone OSS Customs Department has sent the instructions to business owners to suspend import of Thai-made soap and toothpaste into the domestic market through Myawaddy on the Myanmar-Thailand border starting from 4 June,2021.

The Department of Commerce direct to reduce foreign exchange, and to protect the market competition, thus among the imports that are allowed to be imported from the border areas (ITC) card, imports of soap, detergent powder and toothpaste has been instructed to suspend according to the notification on (4-6-2021). The Department of Commerce has temporarily banned imports of four food stuffs including varieties of soft drinks, coffee mixes and condensed milk made in Thailand, from border crossings since May 1,and direct to import only by sea.

About 50 percent of the Myawaddy border traders say, among Thai imports into the domestic market, assorted soft drinks, coffee tea mix; and condensed milk to reduce foreign exchange; among the imports that are allowed to be imported from the border areas (ITC) card to protect the market competition on the products, importation of soap, detergent powder and toothpaste will be suspended from (4-6-2021). The suspension of four Thai-made food items across the border has hurt traders at the Myawaddy border, as well as boosted domestic consumption.

Source: Daily Eleven

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