Posts in category: TRADING

Myanmar is preparing for 800 tonnes of honey export to the European Union market in the current financial year 2021-2022, according to the Ministry of Commerce. EU traders proposed Myanmar’s honey due to its organic production. Myanmar started to adopt Good Beekeeping Practices (GBP) in 2016. The EU gave the go-ahead to Myanmar’s honey to penetrate its market. Arise Plus Myanmar Trade-Related Assistance project implemented by the International Trade Centre and the Department of Consumer Affairs Department under the Ministry of Commerce are contributing to the sustainable growth of the honey market, suggestions to penetrate EU market and implementation of GBP, Hazard Analysis and Critical Control Point (HACCP) and Good Manufacturing Practices (GMP).

The project covers eight honey purifying factories and provides the know-how of food safety systems. Additionally, it also helps improve manufacturing quality control in production stages, ensure the honey is free from pests, pesticide and chemical residues, improve GMP in a value-adding chain, link with international buyers and upgrading the laboratory with the assistance of EU. Myanmar’s honey is exported annually to the United States, Canada, South Korea, Singapore, Malaysia, Thailand, China and Japan. The beekeeping business could help reduce the poverty rate in rural areas by creating more job opportunities, officials said. There are over 900 registered beekeepers in Myanmar.

The country produces over 7,000 tonnes a year and yearly ships 30,000 tonnes to foreign markets. A tonne of honey fetches US$1,700-1,900, said the beekeepers. Myanmar’s honey is required to be extracted by the European honey bee (Apis.mellifera) for exports to the EU. It is sent to both domestic laboratory and international laboratories to test pesticide and chemical residue if needed. Myanmar has nine processing factories in Nay Pyi Taw, Mandalay, Yangon and Sagaing regions and Shan State. Of them, a state-owned factory is offering purifying and packaging service for the small-scale honey traders, and the remaining eight factories are processing honey for the domestic market as well as exports. Myanmar produced 10,875.81 tonnes of honey during the past three financial years from 2013- 2014 to 2015-2016, of which 8,471.24 tonnes were exported.

Source: The Global New Light of Myanmar

Naungtayar potato association imported 25 tonnes of Mar potato species which is suited to the region. The Naungtayar potato association was formed by the potato growers from Naungtayar town, Pinlaung township, Pa-O Self-Administered Zone, Shan State (South). This year, the Naungtayar potato association imported 25 tonnes of Mar potato species from aboard. Last year, they bought from other companies.

In 2015-2016 financial year, the association got tax exemption, and it cost only K1,700 to reach Naungtayar. The association has to pay 15 per cent tax, and it costs K2,500 to reach Naungtayar. The local farmers will grow new species of potato. Then, they will distribute to the local farmers by keeping produced potato in the refrigerator, said Chairman U Khun San Oo of the Naungtayar potato association.

The association imported the new Mar species aimed for the local farmers to grow the potato at a lower cost, to get the good species of potato which is also suited to the weather condition, to yield higher, to produce good delicious potato and to ensure good quality of potato for the fried potato businesses. Naungtayar potato association is constructing a potato cold storage building and is targeted to complete in March. Upon completing the construction project, there will be a good advantage as the good quality potato can be exported. The potato could be stored longer. We will reduce the import of potato, and the local farmers could grow the potato at an affordable cost.

Source: The Global New Light of Myanmar

According to Myanmar Corn Industrial Association (MCIA), the demand for Myanmar corn from foreign countries is on the rise. With the rising demand for Myanmar corn, the price of corn is likely to increase this year, said an official from MCIA. Last year, Myanmar corn was demanded a bit from the foreign market. But this year, three countries have enquired Myanmar corn in a single day. True, last year saw Myanmar corn having demand, but it was only a small volume.

This year, Thailand is preparing to buy corn from Myanmar. At the same time, the demand from Viet Nam is on the rise to buy Myanmar corn.
Yearly, Thailand, Viet Nam and Laos are buying Myanmar corn as they do annually have a high requirement of corn in their countries. This year too, these countries are demanding Myanmar corn as in the previous years.
Myanmar annually produces around 3 million tonnes of corn from 607,000 hectares of land.

It is grown in all regions and states but especially in Shan State, and Sagaing and Magway regions. Myawady corn commodity depot has planned to open in the third week of January in 2021. The depot will be opened to ensure fair trade of corn on the Myawady border and for the greater convenience of the trading. This year, the association targeted to export 1.6 million tonnes of corn. Last year, Myanmar exported over 2.2 million tonnes of corn to the foreign market, with an estimated value of over US$360 million, according to the data of the Ministry of Commerce.

Source: The Global New Light of Myanmar

The work coordination meeting regarding gold exports to Japan and appraisal was inaugurated at the One-Stop Service Centre (OSSC) on 5th floor of UMFCCI on 28 January, Yangon Region Gold Entrepreneurs Association (YGEA) stated. At the coordination meeting, Taw Win Myint Company conducted appraisals of the gold and jewellery which are designated for exports to Japan via air freight. The appraisal team assessed 13 gold items including earrings, rings, pendants and other designs at the OSSC. Myanmar’s gold export paused after a change in the payment system, and now it has returned to normal from July 2020.

As per the notification released by the Ministry of Commerce, starting from April, the international remittance for gold purchase has changed from Telegraph Transfer (TT) to Letter of Credit (LC). As a result of this, payment can take about two months, cost banking service changes by two sides, and increase the charges for security matter in transportation. Meanwhile, gold trading in the international market has also come to a stop due to volatile prices. The YGEA have already submitted a request for the resumption of the TT payment system to the Ministry of Commerce. Gold and other pieces of jewellery are primarily purchased by Japan and the ROK, and other tourists also buy them.

Myanmar gave greenlight to gold exports and imports in January 2018, with the aims to eradicate illegal trade, earn revenue for the country and maintain the market’s stability. The local gold market has become sluggish as the pandemic shut down the events like wedding and traditional festivals, gold traders pointed out. As the gold price is fast to spike yet slow to fall in the domestic market, the sellers exceed the buyers in the domestic gold market, traders said. At present, the old gold scrap and jewellery are refined into the pure gold bar. The raw material has not come from gold mining as the transportation restriction halted gold mining. Myanmar’s gold price is related to global rates. The domestic gold price rose to K1,336,000 per tical (0.578 ounces, or 0.016 kilogrammes) on 6 January 2021 when the gold price rallied to US$1,944 per ounce.

On 28 January 2021, the price showed downtick with K1,316,600 per tical while gold price slid into $1,837 per ounce in the global market. The daily transaction of 50 visses (a viss equals 1.6kg) of gold were earlier seen in the market. Now, about 5-10 visses are rarely traded per day, according to YGEA. According to gold traders, the domestic gold was priced with the minimum rate of K1,216,500 (1 July) and the maximum rate of K1,296,500 (27 July). The price moved in the range of, K1,286,500 on 13 August and K1,332,500 on 7 August. 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 K1,312,000 (16 November) and the lowest of K1,278,000 (28 November). In December, the pure yellow metal priced moved in the range of 1,275,000 (1 December) and 1,333,000 (28 December).

Source: The Global New Light of Myanmar

Myanmar has targeted to export 2 million tonnes of rice in 2020-2021 (Oct/Sept) fiscal year, down from 2.5 million tonnes last fiscal year as summer paddy cultivation drops, said U Ye Min Aung, Chairman of Myanmar Rice Federation (MRF). Weather changes affected irrigation water resource availability on agriculture. The water resource in reservoirs and lakes sharply dropped because of weather changes. Consequently, the decrease in irrigation water availability scaled-down the acreage of summer paddy. Last FY, Myanmar shipped about 2.5 million tonnes of rice to external markets.

This year, Myanmar expect approximately only 2 million tonnes in exports. During Q1 of the present FY (1 October to 31 December 2020), Myanmar exported over 270,000 tonnes of rice via a border and over 370,000 tonnes through sea trade to the foreign markets, totalling about 600,000 tonnes of rice. The country shipped over 800,000 tonnes through maritime trade and over 130,000 tonnes via border to foreign trade partners in the corresponding period of last FY, with an estimated volume of 900,000 tonnes. As a result of this, the figures showed a drop of 300,000 tonnes of rice in exports.

Additionally, the high price in the domestic market and instability of foreign exchange rates are contributing factors to the slump in exports, MRF Chair U Ye Min Aung continued. The main reason why Myanmar’s rice export falls is the price gain in the domestic market and forex trading. A US dollar has pegged at around K1,300 in recent days. The instability in the forex market affects the export sector. That could pose difficulties to the exporters. The federation has also reported this to the government. The instability in the exchange rate is the important factor of the trade balance of the country. It also has direct impacts on all the export sector, including livestock and fishery products beyond agricultural export. 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

The value of Myanmar’s mineral exports has drastically fallen to US$352.6 million as of 15 January in the current financial year 2020-2021 since 1 October, reflecting a tremendous drop of $500.5 million compared to a year-ago period, the Ministry of Commerce’s data indicated. The mineral exports hit 853.13 million in the corresponding period of last FY. The coronavirus impacts led to the slump in mineral exports this FY. The heightened COVID-19 measures also shut down the events like gem emporium and expo, a trader said. So far, excavation of over 1,250 mining blocks has been permitted on a manageable, small, medium, and large scale, according to the Ministry of Natural Resources and Environmental Conservation.

Due to the limited extraction of natural resources, exports of forest products and minerals had dropped significantly in the previous years. Permits for mining blocks were suspended in 2016. However, after two years, Myanmar’s mining sector has now been opened to local and foreign investors, according to the ministry. Within two years of implementing the Myanmar Mines Law, the Mines Department has approved more than 140 out of 3,000 proposed mining blocks. Many more blocks are to be granted the permit. At present, evaluation teams in Kachin, Kayah, Shan, and Kayin states and Sagaing, Taninthayi, and Magway regions are screening mining applications, based on the opinions of the respective departments and the state/regional governments. The Myanmar Mines Law was enacted on 24 December 2015. However, the law came into force when the rules were issued on 13 February 2018.

The ministry undertakes the screening process of the proposals for medium and large-scale mining blocks. As per the regulatory changes in 2018, regional and state governments are given the power to process applications for artisanal and small-scale mining blocks. Under the new regulations, foreign firms can invest in large blocks covering up to 500,000 acres (about 202,000 hectares). In contrast, local firms can invest in all kinds of blocks. Investors can seek a permit to mine for minerals such as gold, copper, lead and tin. The licences cover prospecting, exploration, and production. Myanmar’s mineral exports have shown a marked increase in the previous FY2019-2020, touching $1.87 billion, an increase of $405.48 million compared with the year-ago period, according to data from the Ministry of Commerce. In the FY2018-2019, mineral exports were pegged at just $1.465 billion. Myanmar’s mineral products constitute 10 per cent of overall exports. About 80 per cent of mineral products are shipped to external markets through sea trade. At the same time, 20 of them are sent to neighbouring countries through border trade channels.

Source: The Global New Light of Myanmar

Bangladesh has reopened negotiations with Myanmar to purchase 100,000 tonnes of rice, said the chair of Myanmar Rice Federation (MRF). Bangladesh signed a Memorandum of Understanding with Myanmar for its self-sufficiency of foodstuffs and cooperation in the rice sector in 2017. Myanmar exported 100,000 tonnes of rice to Bangladesh in the 2017-2018 financial year. Later, Bangladesh stopped importing rice from external markets as they do not have staple food. However, Bangladesh’s government called for a tender to purchase rice again to control the market’s rise amid the COVID-19 pandemic.

The two countries’ counterparts are under negotiations for the purchase of 100,000 tonnes of rice. They get back on track, and the negotiations are still underway. It has not reached any agreement yet, the MRF chair affirmed. Myanmar rice’s export price hit a record high in 2020 as the local and foreign demand picked up, MRF stated. Myanmar shipped over 648,158 metric tons of rice and broken rice to foreign trade partners between 1 October and 1 January this FY, generating an income of over US$245.096 million, as per MRF’s data.

Moreover, Myanmar regained rice market shares from certain countries on account of high quality. The price also remarkably increased in November and December 2020. In 2020, the export prices of Myanmar white rice (low quality), broken rice and parboiled rice significantly rose compared to the previous years’ rates. The prices move in the range of US$375-485 per metric ton depending on different varieties. The export price of Myanmar’s rice is relatively lower than the rates of Thailand and Viet Nam. Yet, the prices are higher than those of India and Pakistan’s market prices, MRF’s data indicated.

Source: The Global New Light of Myanmar

The price of Myanmar oil crop peanuts in the Mandalay pulses and beans market is significantly rising due to a sudden spike in demand by China, Mandalay bean traders said. During the previous years, the market used to cool down when Chinese New Year was approaching. This year, they are steadily purchasing the varieties of peanuts and hikes up the price, said the owner of Soe Win Myint depot in Mandalay.

The bean market used to suspend during Chinese New Year. Surprisingly, oil crop peanuts are highly demanded. The price consequently gains on the strong demand. Local millers cannot keep up with Chinese buyers, and so, they are forced to stop running the mills for now. The peanut prices have recently risen, moving in the ranges of K2,200-K3,500 per viss depending on varieties, showing a rise of K200-500 per viss for two weeks.

The price is likely to remain high, the traders guessed. The peanuts from Nay Pyi Taw, Tatkon, Pyinmana, Myinmu and Pakokku areas are abundantly flowing into Mandalay market in the recent days. Mandalay wholesale centre, which has been suspended for four months due to the COVID-19 resurgence, was reopened starting from 21 January 2021, in line with health guidelines on coronavirus issued by the Ministry of Health and Sports.

Source: The Global New Light of Myanmar

Myanmar exported over 500,000 metric tons of rice and broken rice worth US$191.717 million to China in the first quarter of the current financial year 2020-2021, which accounts for 77.4 per cent of overall rice exports, Myanmar Rice Federation’s data indicated. The erratic weather in China has caused damage to some farmlands in China. So, the strong trend is expected, Muse Rice Wholesale Centre stated. At present, Chinese provincial government has not granted the permit on rice import. However, the traders are buying rice with the remaining permit quota of 2020 through the border. The authorized companies for rice export to China through border posts is likely to increase to 50 this year, after inspecting Myanmar rice companies and rice mills in line with SPS Protocol (Sanitary and Phytosanitary Protocol).

However, the deal has not been confirmed yet by China. If they give the go-ahead to it, the trade will surge to three times for sure. The border trade will remarkably rise, said U Min thein, vice chairman of Muse Rice Wholesale Centre. Moreover, the wholesale centre in Muse is endeavouring to practice only cash transaction rather than credit transaction to avoid fraud case, traders said. The federation has also notified the traders to enter into a firm contract and strictly adhere to trade regulations. Myanmar Companies that have difficulties entering into a firm contract and complying with regulations can contact the federation or Muse wholesale centre. MRF released a notification on 27 November 2020. Beyond China, other foreign countries are also purchasing Myanmar’s rice.

The low-quality rice, mainly designated for exports, is fetching high price in the domestic market on the back of strong demand from external markets amid the production slump in the 2020 monsoon paddy season. The rice price is likely to remain high before the 2021 harvest season of summer paddy, traders said. Additionally, Myanmar regained rice market shares from certain countries on account of high quality, said U Ye Min Aung, chairman of Myanmar Rice Federation. Myanmar shipped over 648,158 metric tonnes of rice and broken rice to foreign trade partners between 1 October and 1 January this FY, generating an income of over US$245.096 million, as per MRF’s data. ASEAN countries constitute 9.61 per cent of Myanmar’s total rice exports with over 62,265 tonnes. In comparison, 11.62 per cent of total rice exports in Myanmar goes to European Union countries with over 75,341 tonnes, followed by African countries with over 2,940 tonnes. Over 5,914 tonnes of rice were shipped to other countries.

Myanmar has exported rice to 31 foreign markets so far. China is the leading buyer of Myanmar rice, followed by the Philippines and Poland. Malaysia is the fourth-largest buyer and Viet Nam, the fifth-largest buyer of Myanmar rice. Meanwhile, Myanmar sent broken rice mostly to China, followed by Belgium, Thailand, Netherlands and Viet Nam. Broken rice was placed in 15 foreign markets. The export price of Myanmar’s rice is relatively lower than the rates of Thailand and Viet Nam. Yet, the prices are higher than those of India and Pakistan’s market prices, MRF’s data showed.
Last FY, the country surpassed the export target of 2.4 million tonnes, sending over 426,611 tonnes to neighbouring countries through border trade and over 2.15 million tonnes of rice and broken to foreign trade partners via maritime trade, totalling over 2.58 million tonnes. Next, Myanmar yearly produces 13 million tonnes of rice. There is self-sufficiency in the domestic market, and rice reserves have been stored in Yangon, Nay Pyi Taw and Mandalay. Myanmar shipped 3.6 million tonnes of rice in the FY2017-2018, an all-time record in rice exports. The export volume plunged to 2.3 million tonnes, in the FY2018-2019.

Source: The Global New Light of Myanmar

The agricultural exports have touched a high of US$1.46 billion as of 15 January 2020 in the current financial year since 1 October 2020 on the back of strong global demand for agricultural products amid the coronavirus impacts. The figures reflect a significant rise of $408.526 million this FY. The agro exports soared from $1.05 billion in the corresponding period of the 2019-2020FY, according to the trade figures released by the Ministry of Commerce. Myanmar’s agricultural exports rose regardless of the coronavirus’s impact on foreign demand for other export groups. In the exports sector, the agriculture industry performed the best, accounting for over 22 per cent of overall exports.

The agricultural sector’s top 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 high input costs, procurement of pedigree seeds, high cultivation costs, and variable weather conditions. Myanmar Agricultural Development Bank (MADB) under the Ministry of Planning, Finance and Industry has notified the farmers of agricultural loans for the current financial year. In a bid to mitigate the impacts stricken by the COVID-19, the bank also provided an additional loan of K50,000 per acre under the COVID-19 Special Relief Loan Scheme between June and September 2020. Moreover, it cut the loan interest rate from eight to five per cent during the COVID-19 crisis. The MADB yearly grants agricultural loans to the small-scale farmers. The paddy farmers can take out loans of K150,000 per acre, while the growers of other crops including sugarcane, can get K100,000 per acre. They have to put the original Farmland Permit Form (7) up for collateral to secure the loan under the personal guarantee system. 

Source: The Global New Light of Myanmar