Posts in category: TRADING

The agricultural exports have topped US$2.95 billion as of 2 April 2021 in the current financial year since 1 October 2020. According to the Ministry of Commerce, the figures reflect a significant rise of $809.8 million this FY, according to the trade figures released by the Ministry of Commerce. The agro exports were registered $2.14 billion in the corresponding period of the 2019-2020 FY. The agricultural exports unexpectedly surge regardless of the coronavirus’s impact on foreign demand for other export groups and political changes. At present, some ocean liners suspended cargo transport from Myanmar in recent days. The cargo transport will double or triple if people conduct the trade with small ships. It could harm the export sector somehow, according to Myanmar Mercantile Marine Development Association.

However, Myanmar’s border trade with China is steadily conducted. Around 1,000 trucks are daily seen flowing in and out of the Muse, a central cross-border post between Myanmar and China, the traders said. Myanmar is daily shipping rice, broken rice, green grams, peanuts, various pulses and beans, onion, chilli, fishery products, consumer goods, watermelon and muskmelon to China with over 700 trucks. Meanwhile, building materials, electric appliances, medical devices, summer goods, and fertilizer are imported daily with 200 trucks. The closure of private banks forced the traders to turn to the operators running ‘hundi’, an informal money transfer system, in order to make transactions in the border trade.

In the exports sector, the agriculture industry performed the best, accounting for over 22 per cent of overall exports. The chief 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 upon supply and demand. Contract farming systems, regional and state agriculture departments, exporters, traders, and some grower groups must meet production targets, said an official from the Agriculture Department. The Commerce Ministry is working to help farmers deal with such challenges as high input costs, procurement of pedigree seeds, high cultivation costs, and unpredictable weather conditions.

Source: The Global New Light of Myanmar

Bilateral border trade between Myanmar and Thailand reached over US$1.9 billion as of 2 April in the current budget year 2020-21, which started in October, according to the Ministry of Commerce. The country’s export to Thailand totalled $1.3 billion while its import shared $589 million during the period. Compared to the same period in the last FY, the financial year’s figures declined by $370. Myanmar mainly conducts border trade with neighbouring Thailand through seven border checkpoints — Tachilek, Myawady, Kawthoung, Myeik, Hteekhee, Mawtaung and Maese.

During the over sixmonth period, the Myawady land border topped with $729 million of bilateral trade. Myanmar primarily exports natural gas, fishery products, coal, tin concentrate, coconut (fresh and dry), beans, corns, bamboo shoots, sesame seeds, garment, footwear, plywood and veneer, broken rice and other commodities to Thailand. It imports capital goods such as machinery, raw industrial goods such as cement and fertilizers, and consumer goods such as cosmetics, edible vegetable oil and food products from the neighbouring country.

The bilateral trade between Myanmar and Thailand stood at $1.9 billion in FY2020-2021 (as of April), $5.1 billion in FY2019-2020, $5.5 billion in FY2018-2019, $2.9 billion in the mini-budget year of 2018 or transitional period from April to September this year, $5 billion in FY2017- 2018, $4.3 billion in the 2016-2017FY, $4.8 billion in the 2015-2016FY, $5.7 billion in the 2014-2015FY, $5.6 billion in the 2013-2014FY, $4.7 billion in the 2012- 2013FY, and $4.5 billion in the 2011-2012FY, according to the Myanmar Ministry of Commerce.

Source: The Global New Light of Myanmar

Muse border trade comes to the verge of standstill following the detection of the coronavirus case in the border market, said the vice-chair of Muse Rice Wholesale Centre. On 29 March, one Myanmar citizen tested positive for COVID-19 was found in Kyalgaung precious stone market, prompting China to restrict border access at the Man Wein checkpoint, which is a major border crossing between Muse and Kyalgaung areas. Man Wein post has been closed down since 12:30 pm of 30 March. Man Wein is the important cross-border point between Myanmar and Ruili, China.

Following the detection of coronavirus case in Kyalgaung border, the Ruili Kyalgaung river crossing is also closed. The coronavirus tests and vaccination are now offered in Kyalgaung. Furthermore, China imposed the lockdowns on Kyalgaung and Ruili cities between 1 and 7 April, Muse Rice Wholesale Centre stated. Consequently, there is no trade flowing in and out of the country via the Muse border, and the Muse border nearly comes to a halt. However, Kyinsankyawt and Wan Ding posts give the green light to over 400 watermelon trucks.

Around 400 trucks of watermelon and muskmelon daily enter China via Kyinsankyawt and Wan Ding posts. They do not need to pass the Man Wein checkpoint for Ruili. The watermelon trucks are the exception. To summarize, rice, broken rice, sugar, corn, fishery products, and other consumer goods cannot be traded for now. Since early March, Muse border trade has returned to normal, with a thousand trucks daily plying to and from Muse border. Myanmar is daily shipping rice, broken rice, green grams, peanuts, various pulses and beans, onion, chilli, fishery products, consumer goods, watermelon and muskmelon to China with over 700 trucks through the land border. Meanwhile, building materials, electric appliances, medical devices, consumer goods, and fertilizer are imported daily with 200 trucks.

Source: The Global New Light of Myanmar

Myanmar average export value for January in the 2020- 2021 financial year reached US$824.38 million, and border export value reached $811.15 million, with total export value coming at $1,635.53 million as a result. Meanwhile, standard import value for the same period reached $1,581.94 million, and border import reached $399.68 million, reaching a total of $1,981.62 million.

As a result, Myanmar total trade value for January 2020-2021FY reached $3,617.15 million, creating a trade deficit of $346.09 million. From October to January of the current 2020-2021FY, Myanmar normal export value generated $2,978.58 million, and border export reached $2,681.65 million, totalling $5,660.23 million.

The average import value for the same period reached $4,721.97 million, and border import reached $1,167.60 million, totally bringing $5,889.57 million. Consequently, the total trade value of Myanmar for October to January of 2020- 2021FY reached $11,549.80 million, generating a trade deficit of $229.34 million, according to the monthly trade report by the Central Statistical Organization.

Source: The Global New Light of Myanmar

THE value of Myanmar’s bilateral trade with the neighbouring country Thailand through the land border has registered a decrease of US$360 million between 1 October and 12 March 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 billion and imports valued at over $538.5 million, totalling $1.57 billion. During the corresponding period of the past FY2019-2020, Myanmar-Thailand border trade touched a high of $1.9 billion. Following some traders tested positive for COVID-19, some border posts were temporarily halted last year.

At present, fruits and agricultural products such as cucumber, mango, tomato and vegetable, fishery products, building materials and other pharmaceutical-related goods and equipment can be traded. Myanmar-Thailand friendship bridge No. 2 is also open for trading. The halt in trading undoubtedly harmed the traders and truck drivers from both sides, said a trader from Myawady. 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 2019-2020FY, an official of the Ministry of Commerce said.

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 the 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 their growers’ rights if the corns are imported during the corn season of Thailand, following 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 corns to Thailand this year, said U Min Khaing, chair of the Myanmar Corn Industrial Association.

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, Hteekhee, Myeik, Mawtaung and Maese. Except for Tachilek and Myawady, the remaining border posts showed a decrease in the trade this FY. The value of border trade stood at $162.4 million via Tachilek, $600.5 million via Myawady, $170 million via Kawthoung, $63.6 million via Myeik, $502.24 million via Hteekhee and $7.2 million via Mawtaung. Maese border post has not witnessed any trade yet. 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 country.

Source: The Global New Light of Myanmar

ONLY a small number of rice export companies are purchasing the rice at present owing to the disruption in banking, said U Than Oo, secretary of Bayintnaung Rice Wholesale Centre. Since early February, the local private banks have shut down, disrupting banking. Consequently, export companies are buying less in the domestic market. The rice exports are currently conducted for the previous contract only. The brokers have started buying the summer rice crop. However, the number of buyers has sharply reduced. The banking disruption hinders a new deal.

Only the old contracts are being sorted out. Yet, the rice trade is not regular. What a main problem is the shipment with ocean liners. Additionally, the US dollar is appreciating against the Kyat. However, the farmers are paid lower than the actual market price and suffering losses, he added. Despite the gain in US dollar, the rice and paddy are priced lower in the domestic market. The prices should have been offered higher along with the high exchange rate. Moreover, the number of buyers is smaller in the meantime. Only the cash payment is accepted amid political changes. The farmers are also holding the stocks for now.

The informal money transfer system Hundi is available in border trade, whereas it cannot be done in maritime trade. In Sino-Myanmar border, exchanging Yuan is quite easy through a hundi agent. Similarly, the traders use hundi for exchanging Baht on the Myawady border with Thailand. Nevertheless, overseas trade with European and African countries is carried out with a letter of credit through banks. The disruption in banking poses difficulties to the maritime trade. The price of low-quality rice stands at K21,500 at present, with a slight decrease of K2,500 against the previous months, as per the domestic rice market. Bayintnaung rice wholesale centre, a primary market for rice exports via maritime trade, has been closed down since 11 February.

Source: The Global New Light of Myanmar

THE agricultural exports unexpectedly surge over the past five and a half months amid the private banks’ closure and reductions in other export groups. The agricultural exports have topped US$2.6 billion as of 12 March 2021 in the current financial year since 1 October 2020. The figures reflect a significant rise of $774 million this FY. According to the trade figures released by the Ministry of Commerce, the ago exports soared from $1.83 billion in the corresponding period of the 2019-2020FY. Myanmar’s agricultural exports rose regardless of the coronavirus’s impact on foreign
demand for other export groups and political instability. At present, some ocean liners suspended cargo transport from Myanmar in recent days. The cargo transport will double or triple if we conduct the trade with small ships.

It could harm the export sector somehow, according to Myanmar Mercantile Marine Development Association. However, Myanmar’s border trade with China is steadily conducted. Around 1,000 trucks are daily seen flowing in and out of the Muse, a central cross-border post between Myanmar and China, the traders said. Myanmar is daily shipping rice, broken rice, green grams, peanuts, various pulses and beans, onion, chilli, fishery products, consumer goods, watermelon and muskmelon to China with over 700 trucks. Meanwhile, building materials, electric appliances, medical devices, consumer goods, and fertilizer are imported daily with 200 trucks. Private banks’ closure forced the traders to turn to the operators running ‘hundi’, an informal money transfer system, to make transactions in the border trade. In the exports sector, the agriculture industry performed the best, accounting for over 22 per cent of overall exports.

The agricultural industry’s chief export items 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 upon 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 is working to help farmers deal with challenges such as high input costs, procurement of pedigree seeds, high cultivation costs, and erratic weather conditions.

Source: The Global New Light of Myanmar

SINO-MYANMAR border trade has registered a rise of US$218.85 million between 1 October and 12 March in the current financial year 2020-2021 amid the political changes, according to the Ministry of Commerce. As of 12 March 2021, Myanmar’s exports to China through the land border were valued at $2.05 billion, while imports are worth $920.49 million. The value of Sino-Myanmar border trade in all five border posts touched over $2.97 billion in the current FY, which significantly soared from over $2.66 billion recorded in the year-ago period, the Ministry of Commerce’s data indicated.
The increase in trade is attributed to the extending trading hours at Muse Man Wein and Kyinsankyawt checkpoints.

Furthermore, Pan Hseng (Kyukok) and Wan Ding border posts also gave the green light to fruit trucks under the driver substitution system. This FY, border trade values totalled $2.34 billion through Muse border, $129.9 million via Lweje, $292.8 million via Chinshwehaw, $208 million via Kampaiti, and over $5.227 million via Kengtung. The Commerce Ministry’s data showed a rise in trade value through all those border posts. Muse is an important border in Myanmar and handles an enormous volume of trade. But at times, it has experienced a sharp drop in business on account of China clamping down on illegal goods, resulting in a halt in the trade of agricultural products. Moreover, the COVID-19 impacts slow the trade last year.

In a bid to contain the spread of coronavirus on the border, China banned border crossing. Shortly after that, about 50 drivers are allowed to pass the border under the driver substitution system. Those drivers are, however, tested every three days. As a result, China included them in the vaccination programme, covering more than 40 Myanmar truck drivers, said vice-chair of Muse rice wholesale centre. In a bid to lower trade barriers and offer relief to Myanmar traders through the border trade channel, the Ministry of Commerce, the relevant departments and the Union of Myanmar Federation of Chambers of Commerce and Industry have been negotiating with China counterparts.

The two countries are making efforts to set up more border economic cooperation zones and promote border trade. Myanmar’s MOC is trying to boost exports of rice, broken rice, agro products, fruits and fisheries to China through negotiations. Around 1,000 trucks are daily seen flowing in and out of the Muse, a central cross-border post between Myanmar and China, U Min Thein said. Myanmar is daily shipping rice, broken rice, green grams, peanuts, various pulses and beans, onion, chilli, fishery products, consumer goods, watermelon and muskmelon to China with over 700 trucks. Meanwhile, building materials, electric appliances, medical devices, consumer goods, and fertilizer are imported daily with 200 trucks. Furthermore, Myanmar’s natural gas export to China is also conducted through the Muse-Ruili border.

Source: The Global New Light of Myanmar

THE border trade through Myawady between Myanmar and Thailand climbed up to US$600.5 million between 1 October and 12 March in the current financial year 2020-2021, reflecting an increase of $50.8 million as against a year-ago period. The trade through the Myawady border stood at $549.7 million in the corresponding period of the last FY 2019-2020. Myawady-Maesot border trade has remained mal, although Thailand ordered restrictions in Maesot, according to the Myawady Chamber of Commerce. Myawady border trade did not halt owing to the restriction orders by Thailand. Myanmar trucks cannot enter Maesot, but trucks from Thailand come and pick up the goods at Myawady post, the chamber stated. They experienced trade suspension via Myawady in October 2020.

The halt in trading undoubtedly harms the traders and truck drivers from both sides. It is good that trade does not stop at present, said a trader from Myawady. At present, the Myawady border does not have trade barriers except transaction problem triggered by the shutdown of the private banks, said the chair of Myanmar Corn Industrial Association. Trade is regularly flowing in and out of the country. What a problem is that we cannot claim income through a legitimate financial market during the meantime. Now, the trade is carried out through hundi operators. The closure of formal financial markets except the state-owned banks render the cash flow difficulties. Hundi business is weak to protect transactions and less secure. Additionally, they charge too much for services. Myanmar is currently shipping about 5,000-6,000 tonnes of corns to Thailand through the Myawady border every day.

Myanmar is allowed for corn export 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 73-per-cent tax on corn import to protect their growers’ rights 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. The border trade between Thailand and Myanmar between 1 October and 12 March in the current FY plunged to US$1.57 billion from $1.9 billion registered in the year-ago period, according to data from the Ministry of Commerce. During the last year, Myanmar has increasingly exported corns to Thailand through the Myawady border gate.

Myanmar’s corn exports to Thailand significantly soared to over 1.2 million tonnes through border gates between Myanmar and Thailand during October and May period in the 2019-2020FY, an official of the Ministry of Commerce said. There are seven border posts between Myanmar and Thailand, Tachilek, Myawady, Kawthoung, Htikhee, Myeik, Mawtaung and Maese. The majority of the border trade with Thailand is conducted via Myawady. Myanmar primarily exports corn, 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 country.

Source: The Global New Light of Myanmar

MYANMAR’S exports over the past five and half months of the current financial year 2020-2021 financial year touched a low to US$6.9 billion, reflecting a tremendous drop of over $1.5 billion compared with a yearago period of the previous FY, according to data from the Ministry of Commerce. During the corresponding period in the previous FY, exports stood at $8.4 billion, according to data released by the ministry. The pandemic deals a severe blow to the manufacturing, mineral and other service sectors as it shut down the events. Additionally, people demand only staple food. The drop in exports in natural gas, gems and jewellery, and CMP garments contributes to the slump in exports, the ministry stated.

Both sea trade and border trade dropped amid the coronavirus impacts and the transaction problem due to private banks’ closure. Of the seven export groups, agricultural exports increased $774 million against a year-ago period, while exports of other goods were also seen a slight rise. Meanwhile, exports of livestock, forest products, minerals, fishery products and finished industrial goods declined. Between 1 October and 12 March of the current FY, export values were registered at $2.6 billion for agro products, $15.9 million for livestock, $396.58 million for fishery products, $495.9 million for minerals, $59 million for forest products, $3.137 billion for manufactured goods, and $198 million for other goods.

The country’s export sector relies more on the agriculture and manufacturing sectors. At present, CMP garment exports drastically dropping since the western countries cancelled order following the COVID-19 impacts. The country’s export sector is likely to extend its drop due to the current political climate, an exporter shared his opinion. The Ministry of Commerce is focusing on 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.

Source: The Global New Light of Myanmar