Posts in category: TRADING

Myanmar’s corn exports by sea have come to an end due to the lack of demand, said Chair U Min Khaing of Myanmar Corn Industrial Association.
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.

Myanmar is allowed for corn export to Thailand’s Maesot between 1 February and 31 August with Form-D, under zero tariff. Myanmar corn exports were exempted from tax between February and August. Thailand imposed a maximum tax rate of 73 per cent on corn import to protect the rights of their growers if the corns are imported during the corn season of Thailand, in line with 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 exported 2.2 million tonnes of corns to the external market in the past Financial Year 2019-2020 ended 30 September, with an estimated value of $360 million, the Ministry of Commerce’s data showed. 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.

Source: The Global New Light of Myanmar

The trade between Myanmar and China through Muse border ground to a halt as China tightened the border security and made policy changes in light of the COVID-19. China temporarily shut down Mang Wein and Chinshwehaw checkpoints in early April. Myanmar’s Muse border trade came to a standstill following the closure of the Mang Wein border checkpoint triggered by the detection of the coronavirus cases in the border area, according to the Muse Rice Wholesale Centre. On 29 March, one Myanmar citizen who tested positive for COVID-19 was found in Kyalgaung gems stone market.

It prompted China to restrict border access at the Mang Wein checkpoint, a major border crossing between Muse and Kyalgaung areas. Consequently, there is no trade flowing in and out of the country via the Muse-Mang Wein border. Furthermore, trade through the Kyinsankyawt border, a major checkpoint for fruit exports, is down by 80 per cent, said the traders. The closure of the Mang Wein checkpoint wreaked havoc on the Muse trade. The trade value through Muse land border plummeted to US$2.529 billion between 1 October and 16 April in the current financial year 2020-2021 from $2.738 billion recorded in the corresponding period of last FY, the Ministry of Commerce’s data showed. Suspension in border trade caused a negative impact on perishable fruits.

The policy changes in China’s border exacerbated Myanmar’s exports amid the COVID-19 resurgences, said a Muse trader. Prior to the Mang Wein checkpoint closure, Myanmar daily sent about 2,000 tonnes of rice and 40,000 tonnes of broken rice bags to China. At present, Myanmar’s rice export to China through the Muse land border has stalled amidst the coronavirus concerns. This Mang Wein post plays a pivotal role in trading between Myanmar and China. Myanmar exports rice, broken rice, onion, chilli pepper, pulses and beans, food commodities and fishery products to China. In contrast, electrical appliance, equipment, medical device, household goods, construction materials and food products are imported in the country via Mang Wein. Prior to the COVID-19 pandemic, about 500 trucks were daily flowing in and out of the Myanmar-China border Mang Wein.

Source: The Global New Light of Myanmar

Border trade between Myanmar and India hit US$160 million as of 16 April in the current financial year 2020-2021 ending September, said a statistical report of the Ministry of Commerce. The figures reflected an increase of $84.62 million as against a year-ago period.

The Myanmar-India total border trade during the period was shared by Myanmar’s export of $160.086 million and its import of $0.811 million. Myanmar conducts border trade with neighbouring India through Tamu, Reed, and Thantlang border posts. Between 1 October and 16 April in the current budget year, trade values have registered at over $31.46 million at Tamu and $129.44 million at Reed.

There was no trade recorded at the Thantlang post. Myanmar exports mung beans, pigeon peas, green grams, areca nuts, ginger, saffron, turmeric, bay leaves, fishery products, fruits, and vegetables to India. At the same time, it imports pharmaceuticals, oil cakes, electronic appliances, motorbikes, steel and other construction machines and building materials from the neighbouring country.

Source: The Global New Light of Myanmar

The soft-shell crab cultivation business in the farms of No. 468 block in Kyaukpyu Township, Rakhine State is thriving and those crabs are started to distribute in the external market, said a breeder. They started this commercial farming in March 2019, with 250,000 crabs. They buy the young crabs from the wild, select the live crab and separate them in the crab farming boxes.

The crabs are fed fish, caught by the inshore and offshore fishing vessels, every six hours with the use of bamboo rafts. The soft-shell crabs of marketable size are sent to the cold storage for processing and they are, again, delivered to Yangon. Then, they are shipped to Asian countries with a container. The current difficulties in crab farming is a financial constraint amidst the COVID-19 impacts. Another problem is a limit in cash withdrawal at the bank and we are in debt to secure the raw material supply.

Kyaukpyu district head of the Fisheries Department U Kyaw Sint stated that the business employs about 110 local people, with a maximum monthly payment of K500,000. To maintain the soft-shell crab resources in a long term, we will direct the businesspersons to set some of the crabs free into the sea in a certain season. The soft-shell crabs from Kyaukpyu Township are being shipped to Asian countries such as Japan, the Republic of Korea, China Taipei (Taiwan) and Hong Kong SAR, Southeast Asian countries like Viet Nam and some European countries.

Source: The Global New Light of Myanmar

THE sesame market is sluggish, and the price remains bearish in April-end, traders from the Mandalay market said. The market of edible oil crop has been slow-moving prior to the Chinese New Year festival. The market continues facing slow-down owing to heightened border security amid the COVID-19 resurgences, a trader said. The prices of white and brown sesame varieties have remained stable on the back of domestic demand. At the same time, there is low demand by foreign market. However, the price of black sesame seeds (Samone variety), which is primarily shipped to external markets, slightly declines.

On 4 February, the FOB prices of sesame stood at US$2,000-2,100 per metric tonne of Black sesame (Samone variety), $1,250-1,300 per metric tonne of white sesame and $1,150-1,200 per metric tonne of brown sesame. On 29 April, the black sesame price dipped to $1,900-2,000 per metric tonne. The white sesame is pegged at $1,200-1,300, and brown sesame fetches $1,100-$1,200, Bayintnaung wholesale market stated. Last year, the sesame prices dropped by over 20 per cent compared with the prices in the previous years due to the COVID-19 negative impacts. Consequently, the growers do not make a significant profit this year, a trader from the Mandalay market stressed.

Typically, Myanmar exports about 80 per cent of sesame production to foreign markets. China is the primary buyer of Myanmar sesame, which is also shipped to markets in Japan, the Republic of Korea, China (Taipei), the UK, Germany, the Netherlands, Greece, and Poland among the EU countries. The EU markets prefer organic- farming sesame seeds from Myanmar, said an official from the Trade Promotion Department. Japan prefers Myanmar black sesame seeds, cultivated under good agricultural practices (GAP), and purchases them after a quality assessment. Black sesame seeds from Myanmar are also exported to South Korea and Japan. Meanwhile, China buys various coloured sesame seeds from the country.

This year, Japan has not purchased Myanmar’s sesame yet. Sesame is cultivated in the country throughout the year. Magway Region, which has gained a reputation as the oil pot of Myanmar, is the leading producer of sesame seeds. The seeds are also grown in Mandalay and Sagaing regions. Of the cooking oil crops grown in Myanmar, the acreage under sesame is the highest, accounting for 51.3 per cent of the overall oil crop plantation. The volume of sesame exports was registered at over 96,000 tonnes, worth $130 million, in the financial year 2015- 2016; 100,000 tonnes, worth $145 million, in the FY2016-2017FY; 120,000 tonnes, worth $147 million, in the FY2017-2018; 33,900 tonnes valued at $43.8 million in the 2018 mini-budget period, 125,800 tonnes, worth $212.5 million in the FY2018-2019 and over 150,000 tonnes of sesame, worth $240 million in the previous FY2019-2020, the trade data of Central Statistical Organization indicated.

Source: The Global New Light of Myanmar

Myanmar’s rice export to China through the Muse land border has stalled amidst the coronavirus concerns, said U Min Thein, vice-chair of Muse Rice Wholesale Centre. The abrupt halt in border trade came after one Myanmar citizen tested positive for COVID- 19 was found in Kyalgaung precious stone market on 29 March. That prompted China to restrict border access at the Mang Wein checkpoint, a major border crossing between Muse and Kyalgaung areas.

After the closure of the Mang Wein checkpoint, exports of Myanmar’s kitchen crops such as onion and chilli, various pulses and beans, rice and broken rice, and the fishery products were totally suspended. Consequently, rice and broken rice inflow to Muse border was not seen either. During the first wave of coronavirus pandemic, the driver substitution system helped lessen the impact on border trade. Even the truck cannot enter the border posts, which makes 100 per cent market collapse in Muse border.

Therefore the traders are urgently calling for the reopening of the Man Wein post at the soonest. Myanmar Rice Federation stated that Myanmar had shipped US$275 million worth of more than 720,000 tonnes of rice and broken rice to foreign countries in Q1 (1 October and 15 January) of the current financial year 2020-2021. The border trade handled over 308,000 tonnes of rice, while maritime trade covered over 418,000 tonnes in Q1. Myanmar generated over $800 million from rice exports in the previous FY2019-2020 ended 30 September, with an estimated volume of over 2.5 million tonnes.

Source: The Global New Light of Myanmar

Yangon Region Gold Entrepreneurs Association (YGEA) has called for the members to make the gold transaction with only immediate cash payment. That move will regulate unsustainable rally in the gold market and urge the members to run a cash only for gold transaction in the same regions and states in order to avoid the verbal transactions over calls, said U Myo Myint, chair of YGEA. For instance, a purchase via Mawlamyine, Mandalay, and Pathein over a phone call is unaccepted. Only the transaction with immediate payment in Yangon Region is allowed to avoid unsustainable and unsafe rally.

Last 24 April, YGEA held the meeting, highlighting the stability of the gold market, running cash only for the gold transaction and make a analysis on market rumours. The price of domestic yellow metal reached K1,453,000 per tical on 26 April, tracking the positive international trends. The gold price was ranged between K1,316,000 per tical (28 January) in the minimum and K1,336,000 per tical (6 January) in the maximum. It reached an all-time high of K1,410,000 per tical on 3 February and hit the minimum of K1,340,000 per tical on 2 February. The rate fluctuated between the highest of K1,391,000 (25 March) and the lowest of K1,302,000 (4 March), the gold traders said.

According to gold traders, the local gold reached the lowest level of K1,310,500 (2 September) and the highest level of K1,314,000 (1 September). In October, the rate ranged between K1,307,800 (30 October) and K1,316,500 (21 October). The rate fluctuated between the highest of K1,317,000 (9 November) and the lowest of K1,270,000 (30 November). In December, the pure yellow metal priced moved in the range of 1,280,000 (1 December) and 1,332,000 (28 December). With global gold prices on the uptick, the domestic price hit fresh highs last year to reach K1,000,000 per tical between 17 January and 21 February. It crossed K1,100,000 (22 June to 5 August), climbing to over 1,200,000 (7 August-4 September), and then reaching a record high of K1,300,000 on 5 September 2019.

Source: The Global New Light of Myanmar

THE pigeon pea (red gram) price continues rising from early April, and it surged to above K94,5000 per metric tonne in the fourth week of April. The pigeon pea price was on the rise in March-end 2021 amid the low yield and the dollar gain. The pigeon peas market saw a slight upward trend in price along with the appreciation of US dollar against Kyat, according to the domestic market. The gram fetched up only K837,500 per tonne in early February. The price in April-end showed a remarkable increase of K 100,000 per tonne as against February’s rate. The traders set the selling price at K 88,000-90,000 per three-basket bag in the Mandalay market. The majority of them accept only immediate cash payment.

The pigeon pea market remains bullish even after the Thingyan holidays (13-19 April), a trader from the Mandalay market shared his opinion. Myanmar’s pigeon peas are primarily shipped to India and 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. More than 249,245 tonnes of various pulses and beans were exported to foreign markets between 1 October and 4 December of the current financial year2020-2021, with an estimated value of US$217 million. Of them, the pigeon pea export account- ed for 83,758 tonnes, generating an income of $57.94 million, the Commerce Ministry’s data indicated. The domestic bean market is positively related to the law of supply and demand.

Since 2017, India has been setting import quota on beans, including black grams and pigeon peas. Therefore, the growers face difficulties to export their beans to the Indian market. India’s move to restrict importation of pulses in August 2017 severely affected growers in Myanmar. The price of pulses also drastically plummeted. In the 2017-2018 FY, over a million tons of black grams, pigeon peas, and green grams were shipped to foreign countries. Nevertheless, the earnings have 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 last FY2019-2020 ended 30 September, the country delivered 1.6 million tonnes to the external market, generating an export value of $1.195 billion.

Source: The Global New Light of Myanmar

MUSE border trade virtually hangs down because of coronavirus outbreak in the border market, said U Min Thein, the vice-chairman of Muse Rice Wholesale Centre. On 29 March, a Myanmar national was found to be COVID-19 positive in Kyauk Wine market in Kyaigaung. The next day, China restricted the border crossing at the Mang Wein checkpoint, which is one of major border crossings between Muse and Kyaigaung. Consequently, the main export stuffs namely rice and broken rice, pulses, aquatic products, onion and chilli to China through Mang Wein checkpoint were 100 per cent suspended.

Although the export items are allowed through other checkpoints Wan Ding and Kyin San Kyawt, the inspection over the products has been tightened starting from 20 April because of pandemic. Currently, the export of such products as rice, broken rice, green gram, aquatic products, onion and chilli are halted 100 per cent at Muse border checkpoint. The watermelon and muskmelon are still exported via Kyin San Kyawt checkpoint. However the trade of watermelon and muskmelon are down 90 per cent than previously because the health checks are more stringent than earlier at Kyin San Kyawt checkpoint.

According to the statement of the People’s Republic of China Yunnan COVID-19 prevention team prevention on 19 April said that any of 30 sample items from an export truck to China were needed to undergo COVID-19 test starting from 20 April. The COVID-19 test on each sample item will cost 60 Yuans. The costs will be borne by the owner of the cargos. The export products will only be allowed to discharge the day after the COVID-19 test proves negative. Besides, the traders and cargo handlers will have to undergo COVID-19 tests daily and the cost is 60 Yuans per person. Likewise, people are allowed to enter the workplace only after having the medical record, checking the body temperature and wearing the masks and gloves. The workers and staff have to stay in the restricted areas from 9 pm to 8 am. Those who are disobedient of the rules will be deported. As a result, some export cargos to China through Muse border trade seem to be suspended 90 per cent while some export items are suspended 100 per cent.

Source: The Global New Light of Myanmar

MYANMAR’S Trade Department under the Ministry of Commerce has notified that four food commodities are temporarily restricted for import via the Myanmar-Thailand border starting from 1 May, Myawady Trade Zone reported. The restricted items include various beverages, coffee mix and tea mix, instant coffee, and condensed milk and evaporated milk. However, they can be imported through maritime trade. Traders stressed that it would add more extra transport costs. Moreover, it causes price hikes in the retail market at present. The value of Myanmar’s bilateral trade with the neighbouring country Thailand through the land border has registered a decrease of US$370.79 million between 1 October and 2 April of the current financial year 2020- 2021 as against a year-ago period the statistics issued by the Ministry of Commerce indicated. The ministry reported that exports surpassed imports in trade with Thailand this year, with exports reaching over $1.3 billion and imports valued at over $589.7 million, totaling $1.9 billion.

Myawady border performed the best among seven border points between Myanmar and Thailand, having a trade value of $729.46 million. During the corresponding period of the past FY2019-2020, Myanmar-Thailand border trade touched a high of $2.28 billion. During the last FY, Myanmar has increasingly exported corns to Thailand through the Myawady border. Myanmar’s corn exports to Thailand significantly soared to over 1.2 million tonnes through border posts between Myanmar and Thailand during October and May period in the FY2019-2020, said an official of the Ministry of Commerce. At present, Myanmar exports the corn to Thailand through Myawady and Tachilek land border. About 5,000-6,000 tonnes of corn are daily sent to Thailand through Myawady, while Tachilek border does not regularly export. Myanmar is allowed for corn export between 1 February and 31 August with Form-D, under zero tariff.

Thailand imposed 73 per cent of tax on corn import to protect the rights of their growers if the corns are imported during the corn season of Thailand, according to the notification of the World Trade Organization regarding corn import of Thailand, said a corn exporter. Myanmar intends to reach an export target of one million tonnes of corn to Thailand this year, Myanmar Corn Industrial Association stated. Additionally, exports of natural gas from the Taninthayi Region has contributed to the enormous increase in border trade with Thailand in the previous years. This year, gas exports via the Hteekhee border drastically fell. There are seven border posts between Myanmar and Thailand, Tachilek, Myawady, Kawthoung, Htikhee, Myeik, Mawtaung and Meisei. Except for Tachilek and Myawady, the remaining border posts showed a decrease in the trade this FY. Myanmar primarily exports natural gas, fishery products, coal, tin concentrate (SN 71.58 per cent), coconut (fresh and dry), beans, and bamboo shoots to Thailand. It imports capital goods such as machinery, raw industrial goods such as cement and fertilizers, consumer goods such as cosmetics and food products from the neighbouring.

Source: The Global New Light of Myanmar