Posts in category: TRADING

The price of corn declined amid weak demand from foreign trade partners, according to Yangon Region Chambers of Commerce (Bayintnaung Wholesale Centre). The price has been stable at K1,300 per viss since the end of January. The price moved slightly down by K20 per viss on 25 February. At present, the domestic market has a bustling trade activity. Myanmar sends corn to China and Thailand via border posts.

Myanmar shipped corn to China, India, Thailand, Viet Nam and the Philippines, according to Myanmar Corn Industrial Association. China is purchasing Myanmar’s corn through cross-border trade under the opium substitution programme. Legitimate corn trade between Myanmar and China commenced at the end of 2022. A total of 112 companies have been given the go-ahead for corn exports.

Thailand gives green light to corn imports under zero tariff (with Form-D), between 1 February and 31 August. However, Thailand imposed a maximum tax rate of 73 per cent on corn imports to protect the rights of their growers if the corn is imported during the corn season of Thailand. The directive released on 30 June said that transactions for the exports of agricultural products including corn, rice, bean and oil crops are to be made in dollars instead of Yuan-Kyat/Baht-Kyat.

Therefore, 65 per cent of export earnings (US dollars) of the corn have to be exchanged according to the reference rate of the Central Bank of Myanmar (K2,100). Nonetheless, there is a large gap between the regulated rate and the unauthorized rate of the US dollar (over K2,880). Nonetheless, as per the meeting 66/2022 of the Foreign Exchange Supervisory Committee, export earnings of some items can be made in Chinese Yuan and Thai Baht in addition to the US dollar.

The CBM’s notice dated 18 November takes effect on those export items; various pulses (green gram, black gram, chickpea, pigeon pea), edible oil crops (peanut, sesame seeds), corn, rubber, fishery products (fish, shrimp, crab, eel) and livestock products (live cattle, hides, frozen meat, dried meat). The traders need to apply for a licence to make Yuan or Baht payments.

According to the US dollar policy, 65 per cent of earnings must be exchanged for local currency at the CBM’s reference foreign exchange rate, while exporters can use 35 per cent of export earnings or transfer or sell them to Authorized Dealers or others with an over-the-counter rate within 30 days, the CBM announced.

Myanmar exported 2.3 million tonnes of corn to foreign trade partners in the 2020-2021 financial year. The majority of them were sent to Thailand and the remaining went to China, India and Viet Nam. 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 produces 2.5-3 million tonnes of corn every year. 

Source: The Global New Light of Myanmar

From 1 to 21 February, trade volume between Myanmar and Thailand at the Kawthoung border registered US$13.688 million, according to statistics of the Ministry of Commerce. The trade post has managed to export 12,841 tonnes of goods worth US$11.98 million and import 5,646.17 tonnes of goods valued $1.688 million, totalling $13.688 million worth trade volume.

Between 1 and 29 January, Myanmar earned $19.663 million from exports and $0.847 million from imports, the total trade value of $20.51 million. The Ministry of Commerce announced that millions of dollars were pocketed due to the main export of fishery products through the FOB system.

The most export products are variety of fish, oil-palm and nipa palm. The most import goods are gasoline, diesel, cassava powder, hydrogen peroxide, sodium carbonate, salt, ice box, silicon, charcoal powder, quicklime powder, various goods, battery, oil-palm seeds and bird nests.

Source: The Global New Light of Myanmar

The number of Myanmar trucks carrying watermelons to China dropped so the price significantly escalated, Muse fruit traders said. Earlier, over 150 truckloads of watermelon and muskmelon per day were delivered to China through the Muse border. At present, the border point saw an entry of about 100 trucks of watermelons and muskmelons to China. Additionally, the prices touched a high of 5.2 Yuan per kilogramme for watermelon, 6 Yuan for Taiwan watermelon and 8.3 Yuan per kilo for muskmelon. In early February, tight inspections of Chinese Customs hindered truck transport. Only 20-30 trucks were, therefore, able to pass the checkpoint amid the delays despite the high price of watermelon and muskmelon.

Consequently, watermelon was sold out at the depots on the China side and more than 500 trucks queued in line on the Myanmar side. On 5 February, the trade channel was eased and around 100 trucks entered China. Those trucks struck on the Myanmar side were given the go-ahead in rotation for exports depending on demand, the Muse fruit wholesale centre stated. Myanmar’s watermelon and muskmelon are heavily reliant on the Chinese market. Traders grappled with China’s strict virus policy.
In 2021, the COVID-19 restrictions hindered Myanmar’s watermelon and muskmelon exports to China. Chinese Customs Regulation increased delay.

Long delays of trucks caused harm to watermelon quality and only one in five trucks heading to China remained undamaged with quality watermelons. The traders are observing delivery time, price and profitability as they are perishable fruit, while they are trying to explore new markets besides China. On 1 April, Nantaw and Sinphyu border posts were suspended in the wake of COVID-19 impacts. China has closed down the major border crossing Mang Wein from 30 March 2021 following COVID-19 cases in Myanmar. On 8 July 2021, the two remaining borders – Kyinsankyawt and Panseng – were suspended.

As a result of this, the border trade between Myanmar and China was completely halted. Among Sino-Myanmar border posts, Kyinsankyawt resumed operations on 26 November 2021. Trade activity at the Muse-Mang Wein border, which performed the majority of trade between Myanmar and China, resumed on 14 January 2023. Additionally, other goods except for agricultural products (watermelon, muskmelon), minerals and fisheries products are allowed to be sent to China through that border point. Additionally, Nantaw and Sinphyu, which are the major borders, were reopened on 25 January 2023. At present, Myanmar daily delivers rice, broken rice, rubber, various beans and pulses, fishery products, chilli pepper and other food commodities to China through Kyinsankyawt by over 100 trucks. 

Source: The Global New Light of Myanmar

The wholesale reference rate of palm oil for the Yangon market moved slightly down this week ending 26 February compared to that of the previous week, according to the Supervisory Committee on edible oil import and distribution. The reference price stood at K4,490 per viss in the week from 13 to 19 February. For the week ending 26 February, the price was set higher at K4,470 per viss. The figures showed a small decrease of K20 per viss. The Supervisory Committee on edible oil import and distribution under the Ministry of Commerce has been closely observing the FOB prices in Malaysia and Indonesia including transport costs, tariffs and banking services, and issuing the wholesale market reference rate for edible oil every week.

Regardless of the reference price, the current market price is too high at over K6,000 per viss. If those edible oil retailers and wholesalers are found overcharging, storing inventory intentionally and attempting unscrupulous action to manipulate the market, they will face legal action under the Special Goods Tax Law, MoC released a statement. The Ministry of Commerce is striving for consumers not to worry over the supply of edible oil. The ministry is also trying to secure edible oil sufficiency, supervise the market to offer reasonable prices to the consumers and maintain price stability.

At present, mobile market trucks operated by oil importing companies, in coordination with Myanmar Edible Oil Dealers’ Association, were back to business in some townships on 17 July to offer palm oil at a subsidized rate. They sell palm oil at K4,650 per viss to consumers directly. However, there are limited sources of supply although they directly sell palm oil at a reference rate depending on the volume quota. The domestic consumption of edible oil is estimated at 1 million tonnes per year. The local cooking oil production is just about 400,000 tonnes. To meet the oil sufficiency in the domestic market, about 700,000 tonnes of cooking oil are yearly imported through Malaysia and Indonesia.

Source: The Global New Light of Myanmar

The Trade Department under the Ministry of Commerce will evaluate the Advanced Telegraphic Transfer (TT) system to be eased in export procedures. Truck drivers need to seek QR code-based Vehicle Pass permits beforehand on digital platforms starting from 11 February 2023 in order to export goods in border trade, the Trade Department notified. The Trade Department (head office) notified Muse-Namhkam Border Trade Chamber of Commerce to disseminate this information stating that once the QR code-based Vehicle Pass system achieves success, easing the TT system will be considered.

On 1 February 2023, the department launched an online system to issue vehicle passes intending to facilitate the exports of various pulses, corn, sesame and peanut in the border channel. Consequently, those truck drivers who have received vehicle passes digitally in advance are allowed to pass the border point. The drivers of those aforementioned goods are required to seek it ahead. This vehicle pass can be done on Myanmar Tradenet 2.0 portal. The applicants holding export licenses have to fill in the classification of the vehicle in the Vehicle Monitoring System.

After screening the application, QR code-based Vehicle Pass will be issued. For those goods which do not need export licences, they can directly seek vehicle passes. The trucks can pass the checkpoints with that QR code. Those drivers which fail to show the QR code are not entitled to leave. That system kicked off on a trial run between 1 and 10 February along Muse, Myawady and Chinshwehaw borders. There were no charges on it during the trial period. That system will be fully operational from 11 February. Each truck will be charged K5,000. For further information, people can dial the contact number of the Trade Department.

Source: The Global New Light of Myanmar

Driver-substitution system has been put an end at Kyinsankyawt checkpoint of Muse trade zone for Sino-Myanmar trade from 18 February 2023, said Sai Khin Maung of Khwarnyo Fruit Trading Centre.
Consequently, drivers are allowed to directly pass the border point with their own trucks, by holding a valid border pass. “Myanmar’s truck drivers were given the go-ahead to pass Kyinsankyawt road part from 18 February 2023. They must hold blue border pass documents. That being so, there is no longer short-haul driver service on China’s side,” Sai Khin Maung continued.

Earlier, China banned Myanmar trucks and drivers to enter its side owing to the COVID-19 protocols and only Chinese short-haul drivers have been allowed to transport the goods. Thereafter, Myanmar trucks have been given green light for border-crossing through the Kyinsankyawt-Wang Ding trade channel under the driver-substitution system starting from 16 May 2022. There was no responsibility and accountability if goods were damaged under the driver-substitution system. Therefore, Myanmar exporters choose short-haul driver services and bear high freight costs.

China shut down all the checkpoints linking to the Muse border amidst the COVID-19 pandemic. Of the checkpoints, Kyinsankyawt has resumed trading activity from 26 November 2021. Trade activity at the Muse-Mang Wein border, which performed the majority of trade between Myanmar and China, resumed on 14 January 2023. However, only six-wheel trucks driven by Myanmar drivers are allowed to pass the Mang Wein crossing. Other trucks and travellers are still not entitled to enter the border.

Additionally, other goods except for agricultural products (watermelon, muskmelon), minerals and fisheries products are allowed to be sent to China through that border. Meanwhile, China gives the go-ahead to the imports of construction goods, electrical appliances, medical devices, industrial equipment, consumer goods, household goods and food products only through that border. Myanmar has opened five border trade posts with China – Muse, Lweje, Kampaiti, Chinshwehaw and Kengtung. The majority of the trade is carried out through Muse post, Ministry of Commerce’s data indicated. 

Source: The Global New Light of Myanmar

Myanmar imported about 60,000 tonnes of fertilizer worth US$31.075 million in January 2023, according to the Ministry of Commerce. Myanmar imported over 40,000 tonnes from China, over 7,800 from Thailand, about 5,000 from the UAE, over 2,500 from the Republic of Korea, over 600 from the US, over 500 from Uzbekistan, over 400 from Viet Nam, about 400 tonnes from Japan, over 300 from Laos, 80 from Malaysia, over 10 each from India and Indonesia respectively by sea.

The export volume was down by over 43,000 tonnes compared to that recorded in December 2022. Meanwhile, the country imported over 8,600 tonnes of fertilizer worth $3.02 million through a cross-border channel last month, with about 4,500 tonnes from China, over 620 from Thailand and over 3,000 from India.

The prices of fertilizer moved in the range between K72,000-162,500 per 50-kilogramme bag depending on the brand (Myanma Awba, Thai Grow How, Pale, MPE and Thai Myinpyan) and types of fertilizer in the last week of January 2023. The prices remained unchanged in early February. Additionally, the prices of Malarmyaing brand Cypermethrin 10 per cent insecticide 100 cc and 500 cc were K3,100 and K13,800 per bottle.

Source: The Global New Light of Myanmar

The value of trade through the Myawady border post amounted to US$151.543 million in January 2023, the Ministry of Commerce’s statistics indicated. Trade via the Myawady border met 70.16 per cent of the target last month, with exports worth $48.301 million and imports worth $103.242 million.

The overall trade figures showed a sharp drop of $66.737 million compared to that in the corresponding period last year, with a decrease of $42.015 million in exports and $24.722 million in imports. The exports in agricultural products, livestock products, fishery products and manufacturing groups declined, while imports showed a decrease of $1.519 million in capital goods, $14.389 million in intermediate goods and $8.814 million in consumer goods.

Nonetheless, the trade value in January 2023 was up by $55.301 million from that of December 2022, with an increase of $11.672 million in exports and $43.638 million in imports. Exports of agricultural products, forest products, livestock products, minerals, finished industrial goods and other goods rose. Similarly, import growth of capital goods (US$10.005 million), intermediate goods ($16.095 million) and consumer goods (17.538 million) were recorded last month.

Source: The Global New Light of Myanmar

The price of broken rice jumped to K43,000 per 108-pound bag, according to the Wahdan Rice Wholesale Centre. The price of broken rice was K40,000 per 108-pound bag on 10 February 2023. The price regained to K43,000 per bag on 14 February 2023, reflecting a significant increase of K3,000 per bag within a few days.

The rice demand of exporters pushed up the price of broken rice, traders said. Additionally, the prices of various rice varieties also moved up in the domestic markets. The prices of new high-grade Pawsan rice were around K72,000-87,000 per bag, while old 90-day short-mature rice fetched K61,000 and new one was valued at K56,000. New Khuni rice was worth K63,000 per bag.

Myanmar Rice Federation, Myanmar Rice and Paddy Traders Association, Myanmar Rice Millers Association, traders involved in rice wholesale centres (Wahdan and Bayint Naung) have offered rice at a cheaper rate from 3 August 2022 every day between 9 am and 3 pm except for office holidays.

Ayeyawady Pawsan, Shwebo Pawsan, Pawkywe and short-mature rice varieties (90 days) will be sold at a cheaper price between K35,000 and K77,000 per bag. Each household is entitled to buy one rice bag only and those resellers, traders and retailers are excluded from this scheme. 

Source: The Global New Light of Myanmar

The wholesale reference rate of palm oil in the Yangon market slightly increased compared to that of the previous week, according to the Supervisory Committee on edible oil import and distribution. The reference price stood at K4,480 per viss in the week from 6 to 12 February. For the week ending 19 February, the price was set higher at K4,490 per viss. The figures showed a small increase of K10 per viss.

The Supervisory Committee on edible oil import and distribution under the Ministry of Commerce has been closely observing the FOB prices in Malaysia and Indonesia including transport costs, tariffs and banking services, and issuing the wholesale market reference rate for edible oil every week. Regardless of the reference price, the market price was exorbitantly high at over K6,000 per viss. If those edible oil retailers and wholesalers are found overcharging, storing inventory intentionally and attempting unscrupulous action to manipulate the market, they will face legal action under the Essential Supplies and Service Act, MoC released a statement.

At present, mobile market trucks operated by oil importing companies, in coordination with Myanmar Edible Oil Dealers’ Association, were back to business in some townships on 17 July to offer palm oil at a subsidized rate. They sell palm oil at K4,700 per viss to consumers directly. However, there are limited sources of supply although they directly sell palm oil at a reference rate depending on the volume quota. The domestic consumption of edible oil is estimated at 1 million tonnes per year. The local cooking oil production is just about 400,000 tonnes per year. To meet the oil sufficiency in the domestic market, about 700,000 tonnes of cooking oil are yearly imported through Malaysia and Indonesia. 

Source: The Global New Light of Myanmar