Posts in category: TRADING

The pigeon peas market saw a slightly downward trend in price after India’s demand has dried up, said U Zaw Moe, general secretary of Monywa Commodity Depot. The newly harvested pigeon peas are entering the market. As India stopped buying the beans, the market is cooling off. The price fell by K2,000-3,000 per basket. It declined from K28,500-K29,000 to K24,000 per basket. The prevailing price this year is lower than last year’s price amid the COVID-19 consequences. Last year, it was priced above K30,000 per basket at least, said a trader. Earlier, the pigeon peas (red grams) stockpiled in Monywa were delivered to India, and about 75 per cent of stocks were cleared at that time. As there is no demand by India so far, the traders are keeping them for now.

Normally, the pigeon peas produced in Monywa are sent only to the India market. So far, there is no direct link between Monywa and India markets although the Sagaing Region shares border with India. The peas are exported through traders from Yangon. Next, the price of chickpeas remained unchanged at K27,000-28,000 per basket in Monywa market. Meanwhile, the sesame fetched a low price during its early harvest season. The sesame price showed an uptick from K54,000 to K56,000 per basket on the back of demand by China. Also, the peanut is well traded. “The sesame and green grams are selling well in the domestic market. Of sesame varieties, black sesame is of the best quality. Exporters prefer the black and white sesame to the brown and red sesame,” U Zaw Moe said. Myanmar’s pigeon peas are primarily shipped to India and also exported to Singapore, the US, Canada, Pakistan, the UK, and Malaysia. But, the export volume to other countries rather than to India is minimal.

In the 2016-2017 budget year, over 160,000 tonnes of pigeon peas were shipped to foreign countries, while in the 2017-2018 financial year, exports topped 220,000 tonnes. Myanmar ships over 1.6 million tonnes of different varieties of pulses, especially mung beans, with an estimated worth of US$1 billion, to other counties in the 2018-2019FY. Since 2017, India has been setting import quota on beans, including black bean and pigeon peas. Therefore, the growers face difficulties to export their beans to the India market. Myanmar has to export black bean and pigeon peas under a quota system and limit period. Consequently, there is no guarantee that we could get the prevailing market price next year; the market observers shared their opinions. Following the uncertainty in markets of black bean and pigeon peas, the association suggested, in October-end, that the growers cultivate black-eyed bean more.

Source- The Global New light of Myanmar

In the nearly two months from October 1 to November 27 of the 2020-2021 fiscal year, Myanmar’s foreign trade exceeded $ 4,300 million, leaving a trade deficit of nearly $ 400 million, according to the Ministry of Commerce. From October 1 to November 27 of the 2020-2021 fiscal year, the foreign trade volume was $ 4,325.303 million. In the same period last year, the trade volume was $ 5854.550 million. Compared to the same period last year, the trade volume decreased by $ 1,529.247 million in the first two months of the current fiscal year compared to the same period last year.

The trade deficit means that imports are higher than Myanmar’s exports. In the first two months of the 2020-2021 fiscal year, Myanmar’s exports were worth $ 1,962.670 million, imports $ 2,362.633 million and a trade deficit of $ 399.963 million. Myanmar’s foreign trade is expected to reach $ 34.7 billion in the 2020-2021 fiscal year and a trade deficit of $ 2.3 billion, according to budget figures for the 2020-2021 fiscal year. In the 2019-2020 fiscal year, Myanmar’s total foreign trade amounted to $ 36.665 billion. Of this, $ 17.643 billion came from exports and $ 19.022 billion from imports.

Union Minister for Economy and Trade Dr Than Myint said that despite the high incidence of COVID-19 in the world, Myanmar has not had a major impact on trade due to cooperation in non-stop trade. Despite the high incidence of COVID-19 in the world, our efforts to ensure that trade is not disrupted have not had a significant impact on trade. As a result, Myanmar’s trade volume reached $ 36.66 billion in the 2019-2020 fiscal year, an increase of $ 582 million in exports and $ 35 million in trade from the previous fiscal year 2018-2019.

Source: Daily Eleven

Myanmar Investment Commission (MIC) will grant a permit on the raw and sesame seeds importation proposal if the ministries concerned will give the go-ahead, said U Thant Sin Lwin, Director-General of the Directorate of Investment and Company Administration (DICA). “We have to ask for the opinions of the Ministry of Commerce if the proposal is related to import/export business. For pulses such as beans and sesame seeds, we call for opinions from the Ministry of Agriculture Livestock and Irrigation. We will continue the processing upon the response of the ministries concerned,” he affirmed.

The ministries balance on local production and harvest season. Also, they assess whether the imported goods are suitable for the domestic market. The commission will issue the permit upon the approval of the ministries concerned, he added. Last November, Maha Nyi Ahko Company sought import permit for 10,500 tonnes of raw sesame and 32,000 tonnes of peanuts (with food waste estimated 20 per cent) under zero tariff with the contract manufacturing process. The Ministry of Commerce asked for the opinions of Myanmar Pulses, Beans and Sesame Seeds Merchants Association and the association asked again for the views of the owners of the respective depots where sesame and peanut are primarily traded on 12 November. The owners of the respective depots raised the objection to the raw sesame and peanut importation.

The association was asked opinions on sesame raw material importation three years ago and responded that the peanut and sesame are locally produced, and it should not be allowed for importation, said U Min Ko Oo, secretary of the association. Nevertheless, the association cannot afford to do anything as the raw materials can be imported to produce value-added items for exports under the existing law, he continued. Myanmar’s peanut and sesame are of high quality with the use of natural fertilizer. They are offered fair price by China, Japan, the Republic of Korea and Thailand. Additionally, Myanmar grants tax-exempt on raw material import if the goods are exported with a few exceptions. It has a direct impact on the interest of the local growers.

Myanmar has liberalized the trade and Mandalay depot sent 70 per cent of agricultural products to China through the land border. It generated the country’s revenue and brought benefits to the growers and traders. The border trade has halted during the early outbreak of COVID-19 and has resumed for now. As a result of this, the import of individual company can harm the local market. Otherwise, foreign buyers can confuse outsourcing materials with locally produced materials. Market manipulation may arise later on. We are welcome with the trade openness. Yet, it will harm the interest of the country, local growers and traders. Mandalay depot suggested that the import is not allowed. The depot showed the further opinion that vacant, fallow and virgin land should be treated and the contract farming system is required to be conducted to boost the production and offer guaranteed pricing to motive the farmers to produce a quality crop.

Source- The Global New light of Myanmar

Myanmar’s coffee export has fallen by half this year on the weak demand triggered by the coronavirus. Typically, Myanmar exports about 500-600 tonnes of coffee to external markets. The volume plummeted to 300 tonnes this year, said U Thi Ha, general secretary of Myanmar Coffee Association. Following the development of a vaccine for the COVID-19, the association is expecting a recovery of the market next year. The impacts of coronavirus hurt the coffee industry as the lockdown, and physical distancing caused a reduction in consumption.

The COVID-19 crisis changed the dynamics of coffee consumption this year, and roasters, cafe owners and distributors are identifying specific trends in Asian markets that may expedite recovery to a new normal, according to ASEAN Coffee Federation. Myanmar primarily produces Arabica coffee. Specialty coffee fetches as much as US$4,500-10,000 per tonne. Specialty coffee beans are highly demanded due to their high quality and organic production.

“Myanmar’s coffee has already earned a good reputation. It has penetrated markets in Asia such as Hong Kong and Singapore, European countries, and the US, and it has a good potential in the global market,” said an official from the Agriculture Department. Myanmar’s coffee has grabbed a market share in the US, with the support of USAID and Winrock International NGO. Efforts are being made to penetrate markets in Japan, the Republic of Korea, and Canada.

At present, the export of coffee is extremely low as the COVID-19 hit hard the western countries. In response to the COVID-19 in the coffee sector, innovative trade offer and digital market are required to adapt to a new normal, coupled with client-oriented supply. Moreover, the coffee growers and producers need to increase quality to enter competitive markets. As a result of this, the government-backed loan is needed to help the stakeholders survive in the crisis.

There are 40,000 acres of highland coffee plantations and about 10,000 acres under lowland coffee in Myanmar, totalling 50,000 acres. Shan State is the leading producer of coffee beans. Coffee beans are harvested between December and February. They are distributed and exported throughout the year after harvest time. Myanmar yearly exports around 400 tonnes of coffee. In 2019, it shipped about 500 tonnes of coffee to foreign markets.

Source: The Global New Light of Myanmar

Myanmar’s external trade between 1 October and 20 November in the current financial year 2020-2021 touched a low of US$3.7 billion, a sharp drop of $1.5 billion compared with the corresponding period of the 2019-2020FY, according to the Ministry of Commerce. During the same period in the previous FY, trade stood at $5.23 billion, stated the ministry’s data.
As of 20 November 2020, Myanmar’s export was worth $1.6 billion, which plunged from $2.69 billion registered a year-ago period. Meanwhile, the country’s import was valued $2.07 billion, showing a decrease of $470 million compared with the last FY.

The decrease in Myanmar’s foreign trade was attributed to the drop in exports and imports in the current FY amid the COVID-19 crisis. Myanmar exports agricultural products, animal products, minerals, forest products, and finished industrial goods. At the same time, 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.

Myanmar’s foreign trade has shown a 10-per-cent increase, year over year, under the incumbent government. Myanmar has already surpassed the total trade value target of $34 billion for the last FY, said an official from the ministry. Last FY2019-2020, Myanmar’s external trade reflected an increase of $1.5 billion compared with the FY2018-2019 as it increased from over $35 billion to $36.6 billion. Under the National Planning Law for the 2020-2021 budget year, Myanmar intends to reach an export target at US$16 billion and import at $18 billion. 

Source: The Global New Light of Myanmar

Myanmar’s pineapple exports are blockaded due to the lack of the Phytosanitary Certificate (PC) issued by Myanmar’s Agriculture Department which is required for export to China, according to northern Shan State Pineapple Producers and Exporters Association. Myanmar’s pineapple has penetrated to China market. Yet, the trade halted as there is no G-to-G agreement between Myanmar and China. Myanmar has sent samples of avocado and its products to 40 countries. Thailand’s buyers also eyed Myanmar’s pineapples. However, a memorandum of understanding (MoU) matters in international trade to ease the trade barrier. MyanTrade under the Ministry of Commerce officially linked with buyers. The Agriculture Department is responsible for issuing the PC.

There is potential crop production as opium poppy substitution in the northern Shan State area. It will bring job opportunities for the local people. About 60,000 tonnes of pineapples are yearly produced from over 20,000 acres in the north of Shan State. For now, the growers are experiencing financial hardships as they cannot sell them out of the country during the COVID-19 crisis. Myanmar’s pineapples have reached markets of Beijing and Shanghai, China, for seven years. China daily demanded around 2,000 tonnes of pineapples. Earlier, they directly came to the farm to buy the pineapples.

A tonne of pineapple fetched K240,000. We do not even need to go to Muse to seek buyers. So, we are desperate for the legal trade pact. Hsipaw and Lashio mainly produce corn, watermelon and pineapples. Watermelon has both legal and illegal trading routes. If the government do not initiate the move for pineapple exports within three years, the growers will shift from pineapples to other crops for sure. At present, the growers are interested in pineapples as the sample of pineapples to five international markets reaped the excellent results. The dehydrated pineapple also attracts the buyers. However, capital is necessary as our factory can produce only the sample and still cannot manage a commercial scale.

Additionally, the northern Shan State is referred to as the brown area of the country owing to the armed groups. We do not see any NGO in the area. Only the US Agency for International Development (USAID) visited the place. The pineapple is grown across the country. The northern Shan State area produces the quality pineapple. The samples of dehydrated pineapple have been sent to the US, Dubai, Singapore, Germany and Japan. They gave good feedback. A tonne of dehydrated pineapple is worth K12 million. China is the leading buyer of Myanmar’s pineapples, and it has banned importation since 16 June 2019, for the lack of PC. Earlier, 50 per cent of pineapple production is consumed locally, and the remaining goes to China. Myanmar yearly exports nearly 40,000 tonnes of pineapples to China. Last year, pineapple grower groups from northern Shan State lost over K700 million worth 25,000 tonnes.

This year, there are about 35,000 acres of pineapples across the country; with 55 per cent in Hsipaw Township, 17 in Lashio, nine in Tangyan, six in Hsihseng, and 13 in Namsang and other townships. The pineapples are abundant during its harvest season (July and August). If the trade channel is still suspended this year, growers will suffer more losses, the association stated. Furthermore, pineapple growers want this sector to be listed on the priority sector of the COVID-19 Fund of the government. Also, the government’s long-term loan for pineapple paste, juice and vinegar businesses are required.

Source- The Global New light of Myanmar

Myanmar expects to export up to US$1 billion worth of marine products in fiscal 2020-21 notwithstanding disruptions as a result of COVID-19, said U Wai Lin Maung, Director General of the Department of Fisheries under the Ministry of Agriculture, Livestock and Irrigation. This is around 17 percent higher than in fiscal 2019-20, when the country raked in US$853 million in marine exports, a 20-year high at the time.

Myanmar is expecting higher overseas demand for its fisheries and marine products with Saudi Arabia having lifted a 2018 ban on fisheries imports. Myanmar’s marine products are mainly exported to Thailand, China and Europe. However, as these are perishable products, more cooperation between the related ministries is needed to manage internal transport and storage and minimize delays at the ports both in Myanmar as well as overseas, U Wai Lin Maung said.

Last month, Saudi port authorities seized and detained 30 containers of Myanmar fisheries worth US$80,000 each due to confusion over customs and policies. U Wai Lin Maung added that his department will support local aquaculture farmers and fishermen facing difficulties to avoid disruptions.

Source: Myanmar Times

MYANMAR’S exports of natural gas in the past financial year 2019-2020 amounted to US$3.5 billion, the Commerce Ministry’s data showed. The figures plunged from $3.88 billion registered in the FY2018-2019, as per Commerce Ministry data. Natural gas is included in the list of major export items of Myanmar. Over 10 per cent of the country’s total export earnings
come from the sale of natural gas.

There are 53 onshore blocks and 51 offshore blocks, totaling 104 blocks. A total of 25 onshore blocks and 31 offshore blocks are operating under foreign investment. Natural gas extraction is being made at the Yadana, Yedagun, Shwe, and Zawtika offshore blocks as well as onshore drilling blocks. Yearly extraction is elevated to cubic feet in 670.36 billion from 600 billion this year, according to the fourth-year performance statement of the Ministry of Electricity and Energy. The Shwe natural gas field, located offshore from Rakhine State, was discovered in 2014. Natural gas extracted from the Natural gas export of Myanmar has fetched US$3.5 billion in the past financial year.

The Yadanar natural gas project is being carried out by the TOTAL Company, with its pipeline supplying natural gas to Thailand. Natural gas is also extracted in Yedagun, located offshore from Taninthayi and discovered in 1992. The Zawtika Project in the Gulf of Moattama mainly supplies natural gas to neighbouring Thailand. Production at Yadana and Yedagun is declining, and those projects will be halted in the coming years.

Source: The Global New Light of Myanmar

Mandalay wholesales of sesame seeds and raw peanuts have raised objections to a company’s application for a permit to import these two products, saying this must not be allowed since it will place downward pressure on domestic prices and impact local farmers. U Chun, Chair of the Mandalay Wholesale Center, met with executive members, merchants dealing in sesame seeds, beans and pulses, and edible oil millers on November 16 to discuss the issue of import and re-export of sesame seeds and raw peanuts on CMP (cut, make, pack) basis by the company in question.

The imports and re-exports under CMP will be tax exempt and prices will therefore, be cheap. Myanmar peanuts are mostly exported to China and with competition from cheap imports, the local prices will drop. If this happens, the farmers will be badly affected. However, should they export to other countries, then there is no problem. Sesame seeds and raw peanuts from China, India, Vietnam and Africa are already cheap, and with no taxes, the prices will be even lower, and hence, capture market share from local producers. Myanmar’s sesame seeds are pricier because of their superior quality, being organically produced with natural fertilizers, with good potential of higher demand and better prices in international markets. The country’s produce is exported to niche markets like Japan and the EU.

Local peanuts have a better taste and prices are 100 Yuan more than peanuts from China, and 200 Yuan more than Indian peanuts. Current prices of sesame seeds have dropped by K20,000 per bag of 45 viss, and peanut prices by K300 per viss, during this week. Such price fluctuations can be damaging for local growers. Past experience has shown how re-exports adversely impact domestic prices. The re-export of sugar had led to a drop in its price from K1400 per viss to K800. Zero taxes for imports, if they are re-exported, makes this option lucrative though it harms local growers’ interests. At this stage it is important to protect local farms and ensure price stability.

Source: Myanmar Times

THE volume of rice and broken rice exported between 1 October and 6 November in the current financial year 2020-2021 reached 163,413 metric tons, worth over US$60.67 million, according to an announcement from the Myanmar Rice Federation (MRF). Maritime trade constitutes 54.9 per cent of rice exports, generating $33 million from over 89,764 tonnes of rice, while border trade accounts for around 45 per cent of the total rice exports. Rice
exports through the land border have generated an estimated income of $27.55 million from over 73,649 tonnes of rice. Myanmar’s rice is shipped
to 26 foreign countries in October 2020. MRF expected to ship 2.4 million tonnes of rice, and broken rice in the last FY ended 30 September 2020.

The country surpassed the export target, sending over 426,611 metric tons to neighbouring countries through border trade and over 2.15 million tonnes of rice and broken rice to foreign trade partners via maritime trade, totalling over 2.58 million tonnes. A surge in rice export through sea trade was contributed to meeting year’s export target, MRF stated. Myanmar targets to export 4 million tonnes of rice and broken rice in the current financial year 2020-2021, said U Aung Than Oo, vice president of Myanmar Rice Federation (MRF). Myanmar shipped 3.6 million tonnes of rice in the FY2017-2018, which was an all-time record in rice exports. The export volume plunged to 2.3 million tonnes, in the FY2018-2019. Yangon gold merchants seek large-scale trading permit around 100 trucks of watermelons and muskmelons could pass through Kyin San Kyawt border checkpoint. The inspection at China’s checkpoint takes longer for drivers beginning from 16 November, and only 50 trucks can enter border crossing. If around 200 watermelon/muskmelon trucks enter the Muse land border, the traffic congestion will worsen.

Muse depot traffic control is monitoring the trucks at its upmost, said the owner of Khwar Nyo Fruit Depot. The prices of watermelon move in the range of 4,500-6,000 Yuan per tonne on 17 November, while muskmelon is priced 4,000-5,800 Yuan per tonne. The COVID-19 resurgence in Myanmar directly affected the border trade, and some truck drivers have tested positive for the coronavirus. As China is tightening the border security to contain the spread of COVID-19, it caused the delay in trade. Earlier, trading was conducted in Muse border. The COVID-19 conditions blocked Chinese traders to come. As China has been stepping up border control measures to contain the spread of the COVID-19, the driver substitution policy has been exercised on Muse, Mang Weing and Kyalgaung border route, said chair of Muse-Namkham Chamber of Commerce. Myanmar exports more than 800,000 tonnes of watermelons and 150,000 tonnes of muskmelons every year. Workers load sacks of rice onto a truck in Yangon.

Source: The Global New Light of Myanmar