Posts in category: TRADING

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

Myanmar generated US$235.477 million from mineral exports between 1 April 2022 and end-January 2023 in the current financial year, according to the Ministry of Commerce.

During the April-January period, the public sector performed mineral exports valued at $23.43 million whereas the private sector saw mineral exports worth $212.04 million.

The export items are gems and jewellery, gold, jade, pearl, diamond, lead, tin, tungsten, silver, copper, zinc, charcoal and other minerals. Myanmar earned $564.457 million from mineral exports between April and 27 January in the last FY2021-2022. Myanmar targets to achieve exports worth $15.5 billion and imports worth $14 billion in the 2022-2023 FY, the National Planning Law stated.

Source: The Global New Light of Myanmar

Truck drivers need to seek QR code-based Vehicle Pass permits beforehand on digital platforms in order to export goods in border trade, the Trade Department notified. The department launched an online system to issue vehicle passes with a view to facilitating 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 licences have to fill in the classification of the vehicle in the Vehicle Monitoring System (htpps://vehicle.myanmartradenet.com). 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 will start on a trial run between 1 and 10 February along Muse, Myawady and Chinshwehaw border. There will be no charges for it during the trial period. That system will be fully operational from 11 February. Each truck will be charged K5,000.

Source: The Global New Light of Myanmar

Myanmar’s natural gas export to China pocketed US$1.43 billion in 2022. Myanmar is listed among China’s largest gas importers. It ranked third after Turkmenistan and Russia. Natural gas extracted from the Shwe natural gas field located offshore from Rakhine State is exported to China through the cross-border Myanmar-China gas pipeline.

Approximately 12 billion cubic meters of natural gas are yearly exported to China through that pipe which was constructed with an estimated cost of $1 billion. The pipeline connects Rakhine, Magway, Mandalay, and Shan State to Yunnan Province, China. Furthermore, a 771-kilometre-long crude oil pipeline was constructed with the use of $1.5 billion.

It was designated to send 22 million tonnes of crude oil per year. South-East Asia Gas Pipeline Company Limited (SEAGP) is responsible for the operation of the Myanmar-China Gas Pipeline, while South East Asia Crude Oil Pipeline Company is in charge of the crude oil pipeline. Myanmar Oil and Gas Enterprise (MOGE) owns 7.36 per cent of shares in the gas pipeline project, whereas it holds 49.1 per cent of shares in crude oil pipeline projects.

Source: The Global New Light of Myanmar

Traders based at the China-Myanmar border said that since China is adjusting the level 2 for border trade, it has not reached the fruit sales field from Myanmar yet. According to a border-based trader, the customs system is also being updated on the Chinese side, and it is not yet known what will happen in the new system.

Trade is expected to improve after the Chinese New Year period, but prices have fallen slightly as fruits from Viet Nam and Laos have started entering the Chinese market, according to border reports. The 855 melons are priced at 3.6 yuan per kilogramme, Tangwan fruit is 3.6 yuan, and sweet melons are priced at 5 yuan per kilogramme. On 1 February 2023, 54 cars entered the Chinese fruit market.

China is starting to install a new system for border trade, and traders say it is still unclear what will happen. When the Chinese market just opened, melons and cucumbers from Myanmar fetched good prices, but after the price dropped due to the export of low-quality fruits, they are hoping to get good prices again after the New Year period. 

Source: The Global New Light of Myanmar

The trade volume between Myanmar and China reached up to US$2159.412 million between April 2022 and half of January 2023 in the financial year 2022-2023, according to the Ministry of Commerce. The export value was $1801.501 million and the import value was $357.911 million.

Myanmar conducts cross-border trade with China through such border posts as Muse, Lweje, Chinshwehaw, Kampaiti, and Kengtung and the trade volume through the Muse border alone amounted to 90 per cent of the total.

Between April 2022 and half of January 2023, Myanmar’s trade through Muse was valued at $1762.051 million. The trade values were registered at $105.735 million on the Lweje border and $215.603 million in Chinshwehaw. The Kampaiti border earned worth $66.416 million and the Kengtung border witnessed trade worth $9.607 million.

Source: The Global New Light of Myanmar

Myanmar has conveyed over 1.8 million tonnes of rice and broken rice at an estimated value of US$680 million between 1 April 2022 and 25 January 2023, according to Myanmar Rice Federation (MRF).

The export values were recorded at $82 million from 250,947 tonnes in April 2022, $51 million from 153,507 tonnes in May, $50 million from 146,094 tonnes in June, $66 million from 182,550 tonnes in July, $53 million from 156,893 tonnes in August, $37 million from 93,792 tonnes in September, $65 million from 163,189 tonnes in October, $106 million from 264,038 tonnes, $90 million from 228,445 tonnes in December and $79 million from 196,700 tonnes in January 2023, totalling $679 million from 1,836,154 tonnes in ten months in the current financial year 2022-2023.

The export volume hit the lowest in September and the highest in November. Myanmar has been exerting concerted efforts to grow 10 per cent yearly in the rice export sector. To raise foreign income, it has been prioritizing the exportation of high-grade rice and boosting export volume, MRF stated. Myanmar bagged over $700 million from approximately 2 million tonnes of rice export in the 2020-2021FY.

Source: The Global New Light of Myanmar

Trade activity at Muse border post has not returned to normalcy in post-Chinese New Year, with only 60 trucks loaded with export and import items flowing in and out of the zone, said U Min Thein, vice-chair of Muse Rice Wholesale Centre. Before the Chinese New Year holidays, about 30 truckloads of rice and broken rice were sent daily to China through the Kyinsankyawt post. The number of trucks has declined to 10 at present. At present, Myanmar exports rice, broken rice, watermelon, sugarcane, corn, pulses, rubber and fishery products to China through Kyinsankyawt post with 40 trucks, and goods are brought in with 20 trucks. Trade is yet to return to normal.

“The CNY has just finished. So, trade has not returned to normalcy. The truck frequency is still less. The banks have not resumed their service. Moreover, the majority of the traders and employees engaged in the cross-border trade are on vacation. However, the trade activity commenced with some export items,” U Min Thein elaborated. Similarly, the Mang Wein border that was reopened in the pre-CNY sees only a small number of trucks, he added. However, only six-wheel trucks driven by Myanmar drivers are allowed to pass the Mang Wein crossing. Other trucks are still not given the green light. 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 primarily conveys goods to China via the Muse border. Nonetheless, traders usually face challenges amid the policy changes in China triggered by the COVID-19 cases. China shut down the checkpoints linking to the Muse border in wake of the pandemic. Nantaw and Sinphyu border points were suspended on 1 April 2020 and Mang Wein was closed down on 30 March 2021. The remaining Kyinsankyawt and Panseng crossings were also restricted on 8 July 2021. Only the Kyinsankyawt crossing was reopened on 26 November 2021. Additionally, trade activity on the Mang Wein border, which performed the majority of trade, was reinstated on 14 January 2023. Furthermore, Nantaw and Sinphyu border points, major border crossings for people, resumed trade activity on 25 January.

Source: The Global New Light of Myanmar

The prices of new rice spiked in the domestic market, according to the Wadan Rice Wholesale Centre. On 20 January 2023, new Pawsan rice prices moved in the range between K61,000 and K80,000 per bag depending on the producing areas (Shwebo, Myaungmya, Dedaye, Pyapon and, Pathein). Three days after, the prices moved up to K63,000-84,000 per bag. Figures indicated an increase of K2,000-4,000 per bag within three days.

Similarly, the prices of low-grade rice stayed between K43,500-67,000 per bag depending on different varieties (Kyapyan, Emahta, Meedone, Ngasein) on 20 January. The prices touched a high of K45,500-70,000 per bag on 23 January, showing a steep rise of K1,000-4,000 per bag depending on different varieties. High demand for paddy in the market pushed up the rice prices.

Starting from 3 August 2022, Myanmar Rice Federation, Myanmar Rice Producers and Planters Association, Myanmar Rice Millers Association, and traders and brokers engaged in Wadan Rice Wholesale Centre and Bayintnaung Rice Wholesale Centre have been working together to offer fair prices for Shwebo Pawsan from K75,000-77,000 per bag and other rice varieties to the consumers at the Wadan Wholesale Centre.

The offer prices are K52,000-55,000 per bag of Pawsan from the Ayeyawady area, K55,000-60,000 per bag of Kyapyan, and K35,000-37,000 per bag of short-mature rice varieties (90 days) at the Wadan Rice Wholesale Centre. Each household can buy only one bag. Those traders and retailers are not entitled to buy them.

Source: The Global New Light of Myanmar