Posts in category: TRADING

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

Trade activity at the Muse-Mang Wein crossing, which performed the majority of trade between Myanmar and China, resumed on 14 January 2023, said Vice-Chair U Min Thein of Muse Rice Wholesale Centre. It was closed down on 1 April 2020. Among the border points connected to Muse-Kyalgaung areas, only Mang Wein was reopened at 7 am Myanmar Standard Time on 14 January with the presence of the officials of the two countries. 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. Passengers are not entitled to pass it as well.

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, U Min Thein elaborated. The Mang Wein border allows Myanmar truck drivers to cross the border point, whereas the driver-substitution system is yet to be abolished at the Kyinsankyawt border although it was reopened on 26 November 2021. U Min Thein called for an end to the driver-substitution system at the Kyinsankyawt border to facilitate the cross-border trade between Myanmar and China.

At present, there is no responsibility and accountability if goods are damaged under the driver-substitution system. Therefore, Myanmar exporters choose short-haul driver services and bear high freight costs, traders engaged in the Muse border said. Myanmar daily delivers rice, broken rice, pulses, rubber, watermelon, fishery products, chilli pepper and other food commodities to China through the Kyinsankyawt border with about 100 trucks and building materials, electrical appliances, pharmaceuticals, fertilizers, household goods and industrial raw materials are imported into the country with 40 trucks. 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, Ministry of Commerce’s data indicated. 

Source: The Global New Light of Myanmar

The value of Myanmar’s exports to the neighbouring countries through border trade showed a significant increase of US$735.6 million in the nine months (April-December) of the current Financial Year 2022-2023 compared with that in the corresponding period of 2021. The export through border trade reached over $4 billion during the April-December period which soared from $3.66 billion in the year-ago period, the Ministry of Commerce’s statistics indicated. Myanmar’s border trade totalled $6.044 billion this FY.

Usually, Myanmar’s exports outperformed imports in border trade, with export worth $4.4 billion and imports valued 1.643 million. Smooth transport plays a crucial role in trade. Transport barriers and traffic problems can hinder freight forwarding, and degrade the quality and weight on price. The departments concerned are prioritizing the smooth freight flow. The officials of the border posts are tackling difficulties and trading requirements for the supply chain including growers, traders and chambers associations to bolster the exports. The authorities are keeping in touch with the traders for trade facilitation and trade promotion.

Those efforts in border trade are contributing to the revenue of the State, the Ministry of Commerce stated. Myanmar has opened 17 border posts between Myanmar and the neighbouring countries; with China through Muse, Lweje, Chinshwehaw, Kampaiti and Kengtung, with Thailand through Myawady, Kawthoung, Myeik, Hteekhee, Tachilek, Mawtaung and Meisei, with Bangladesh through Sittway and Maungtaw, with Laos through Kenglek and with India through Tamu and Reed. Of the Sino-Myanmar border posts, the Kengtung crossing showed a small decline.

Moreover, Myawady, Kawthoung and Mawtaung posts with Thailand also registered a drop while the trade with India via Reed fell sharply. The border trade with Bangladesh through Sittway plunged as well, the trade data indicated. The values of border trade stood at over $1.643 billion at Muse, $99.69 million at Lweje, $189.8 million at Chinshwehaw, $61.185 million at Kampaiti, $8.54 million at Kengtung, $113.4 million at Tachilek, $1.584 billion at Myawady, $162 million at Kawthoung, $92 million at Myeik, $1.956 billion at Hteekhee, $9.68 million at Mawtaung, $100.58 million at Sittway, $11.788 million at Maungtaw, $12.58 million at Tamu.

There is no trading record at Reed, Meisei and Kenglek border posts in the past nine months. Myanmar primarily exports rice, various types of beans, sesame seeds, corn, fruits and vegetables, dried tea leaves, fishery products, natural gas, rubber, gem, animal products and spice to the neighbouring countries, while it imports capital goods such as machinery and motorbikes, raw industrial goods such as CMP raw materials, cement and fertilizers, and consumer goods such as cosmetics, edible vegetable oil and food products. 

Source: The Global New Light of Myanmar

Operations were resumed at the Myawady-Mae Sot Friendship Br-idge I on 12 January 2023 after nearly three years of closure, and authorities from Thailand and Myanmar formally reopened the bridge at 8:30 am yesterday. Officials concerned held a meeting regarding the resumption of the bridge activity at Tak Province in recent days. After a series of negotiations, operations on the bridge were reinstated on 12 January.

Therefore, people can enter the Mae Sot side by passing that bridge with the border pass as before. For a border pass document, Myawady residents can apply for it by presenting a citizenship scrutiny card, household registration and three pictures of the licence-sized photo. Licenced private cars are entitled to go over the bridge and the passengers need to present COVID-19 vaccination certificates.

Furthermore, border crossings with passports are also allowed and Myanmar migrant workers can also return home via the bridge as before. That bridge is the major border trading route between Myanmar and Thailand. The border crossing ceased amid COVID-19 cases on 23 March 2020. The border trade activity is therefore being carried out at Bridge II. Efforts were made to reopen the bridge. However, it has been closed down for nearly three years amid coronavirus infections in both countries. It is restarted at present. After reopening the bridge, it will bring about job opportunities for residents and freight forwarders.

Source: The Global New Light of Myanmar

The value of Myanmar’s mineral exports in the past nine months (April-December) in the current financial year 2022-2023 exceeded US$200 million, according to the Ministry of Commerce. During the April-December period, the public sector performed mineral exports valued at $16.151 million whereas the private sector saw mineral exports worth $206.19 million. Myanmar earned $519.76 million from mineral exports in the corresponding period last FY. Myanmar targets to achieve exports worth $15.5 billion and imports worth $14 billion in the 2022-2023 FY, the National Planning Law stated. The export items are gems and jewellery, gold, jade, pearl, lead, tin, tungsten, silver, copper, zinc, coal and other minerals. Myanmar’s mineral exports amounted to $288.599 million in the 2021-2022 mini-budget period and $895.611 million in the 2020-2021 FY.

Source: The Global New Light of Myanmar

The wholesale reference rate of palm oil in the Yangon market continued to rise, according to the Supervisory Committee on edible oil import and distribution. The reference price stood at K4,470 per viss in the week from 2 to 8 January. For the week ending 15 January, the price was set higher at K4,530 per viss. The figures showed an increase of K60 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. 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 Specific 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 a reasonable price to 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 K4,750 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

Myanmar conveyed over 1.639 million metric tons of rice and broken rice to foreign trade partners in the past eight months (April-December) of the current financial year 2022-2023, with an estimated income of US$600 million, according to Myanmar Rice Federation (MRF). In the past nine months, more than 42 exporter companies delivered over 1.264 million MT of rice and broken rice to external markets by sea, whereas over 369,162 MT were sent to neighbouring countries via border posts. Myanmar shipped rice and broken rice to regional countries, countries in Africa and European Union member countries through maritime trade.

It is also exported to neighbouring countries, China and Thailand through cross-border posts. China is still the main buyer of Myanmar’s rice in the past nine months, purchasing over 264,000 tonnes of rice and over 237,000 tonnes of broken rice. Myanmar exported rice to over 20 foreign markets in the past months, mostly to China (264,284 MT), followed by Bangladesh, the Philippines and other European countries such as Italy, Spain, Poland, Belgium, the Netherlands and France. Additionally, Myanmar primarily conveyed 278,219 MT of broken rice to China and 230,488 MT to Belgium.

The prices of high-grade rice varieties stood at K60,000-100,000 per bag and K35,500-50,000 per bag for low-grade rice varieties. The export price of Myanmar’s rice was relatively lower than the rates of Thailand and Viet Nam, according to MRF. The federation targeted to ship two million tonnes of rice this financial year. Myanmar has shipped more than 1.4 million tonnes of rice and broken rice to foreign trade partners between 1 October and 31 March in the past mini-budget period (2021-2022), Myanmar Rice Federation stated. Myanmar bagged US$700 million from two million tonnes of rice exports to foreign countries in the past 2020-2021 financial year. 

Source: The Global New Light of Myanmar

Trade activities on some Sino-Myanmar borders including Nantaw, Sinphyu and Mang Wein, which performed the majority of trade, are slated to restart on 8 January, said U Min Thein, vice-chair of Muse Rice Wholesale Centre. China has shut down all crossings linking to the Muse border amidst the COVID-19 pandemic, imposing travel bans at Nantaw and Sinphyu borders from 1 April 2020 and Mang Wein from 30 March 2021. Only Kyinsankyawt resumed trading activities on 26 November 2022 after the closure on 8 July 2021. “Mang Wein border saw a bustling trade with 400 and 500 trucks.

The other two crossings – Nantaw and Sinphyu – have been closed down for three years. Now, those will be reopened on 8 January. They will be accessible by road vehicles (trucks, vans, motorcycles) again,” U Min Thein said. Additionally, the driver-substitution system will be abolished along with the reopening of the border crossings. There is no responsibility and accountability if goods are damaged under the driver-substitution system. Therefore, Myanmar exporters choose short-haul driver service at the Kyinsankyawt border and bear high freight costs.

If this system is cancelled, we can directly go on the China side, tackle delay problems, facilitate trade in the Muse border, save high short-haul driver costs and help cut unemployment, U Min Thein added. Myanmar daily delivers rice, broken rice, pulses, rubber, watermelon, fishery products, chilli pepper and other food commodities to China through Kyinsankyawt with about 100 trucks and building materials, electrical appliances, pharmaceuticals, fertilizer, household goods and industrial raw materials are imported into the country with 40 trucks. 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, Ministry of Commerce’s data indicated. 

Source: The Global New Light of Myanmar

Pulses and oil seeds with great export potentials were highly traded at the end of the year 2022, said Mandalay traders. The traders of black gram, pigeon pea, green gram and oil seeds were doing a roaring trade before the New Year. The prices surged to K165,000 per three-basket bag of black gram, K170,000 for pigeon pea and over K7,000 per viss of peanut at the end of the year.

In the corresponding period of 2022, the prices touched a low of K125,000 per bag of black gram, K120,000 for pigeon pea and K3,200 per viss of peanut, said U Soe Win Myint, an owner of Soe Win Myint brokerage in Mandalay city. “The prices of black gram and pigeon pea increased higher than that of the year-ago period. Green gram and peanut which are exported to China also fetched a good price. The favourable weather condition this year supported the crop yield. The prices grew by 30 per cent compared to a similar period in the previous year (2021).

At present, black gram, green gram, sesame seeds, peanut, kidney bean, rice bean, butter bean, and black-eyed beans are being harvested. The pulses and seeds importing countries also raised the purchase order. Therefore, the agricultural products will contribute to the Gross Domestic Product growth in the coming year,” he elaborated. The pulses and oil seeds are abundantly flowing into the bustling Mandalay markets. They are commonly grown in Mandalay, Sagaing and Magway regions throughout the year. However, they are cultivated as winter crops in Yangon, Bago and Ayeyawady regions. 

Source: The Global New Light of Myanmar