Posts in category: TRADING

The prices of rice, edible oil, onion, chilli pepper, sugar and jaggery hit an unprecedented record high this year.
Similarly, the prices of related food groups also inflated. When the prices of commodities declined, the food prices did not show a price retreat. Those traders in possession of goods reaped a handsome profit amid the fresh peak in prices rather than the growers.

Rice
The low-grade rice price rocketed from K32,000 in early January 2022 to K48,000 per bag in December. However, new monsoon low-grade rice fetched only K42,000 per bag. The broken rice exported to foreign markets increased from K28,000 to K38,000 in December. In the second half of 2022, the price of broken rice hit a peak of K40,000 per bag. The price of sticky rice also surged from K60,000 per 102-pound bag in early 2022 to K95,000 in November and then, dipped to K80,000-85,000 per bag in December.
In early 2022, the price of high-grade Pawsan from the Shwebo area was only K43,500 per bag while those from Pathein and Myaungmya areas were priced at K45,000 per bag. In September, the prices rocketed to K70,000 for Pathein-Myaungmya Pawsan and K95,000 for Shwebo Pawsan. In December, new Pawsan rice was worth K64,000-70,000 per bag depending on the producing areas.

Palm oil
The palm oil wholesale reference price slipped from K4,450 to K4,360 per viss in December.
In March 2022, the original price of palm oil was K6,445 per viss if it was calculated on the dollar exchange rate at K1,787. The reference price was set at K6,575 per viss. The wholesale market price was K70,000 per viss.
From mid-2022, the reference price was issued on Mondays depending on the imported palm oil prices. The reference price increased to K5,815 per viss in the last week of June and then dropped to K3,525 per viss in early August. The reference price was set at K4,360 per viss at the end of December, while the delivery order price was K5,150.
The market prices are way higher than the reference price. The palm oil price rocketed to K9,500 per viss in August. The wholesale market price of palm oil fluctuated between K4,500 and K9,500 per viss in 2022. The wholesale prices of peanut oil stood at K6,000 per viss in early 2022, K13,000-K14,000 in August and K9,500 in December.

Pulses
The new black gram price was approximately K1.3 million per tonne in early 2022 and the price rose to K1.7 million in December. The price hit the highest of K2.1 million on 31 August.
Similarly, the price of pigeon peas rose from K1.2 to K1.7 million per tonne in December. It soared to K2.175 million per tonne on 19 September.
The price of chickpeas that is highly consumed in the domestic market slightly moved up to K4,050-K4,250 in December from K2,950-K3,050 per viss in early 2022. It hit a record price of K4,400-K4,700 per viss in mid-September. Also, the price of green gram (Shwewah variety) slightly decreased to K2,830-K3,000 in December from K2,950-K3,200 per viss. In early September, they were priced at K3,165-K3,500 per viss.

Onion
The wholesale prices of onions moved in the range between K800 and K1,050 per viss in early January 2022 depending on the size and varieties. The price data showed a three-fold increase of K2,400-K2,800 per viss in December. The highest price of old summer onion was K5,100 per viss on 2 December.
Early entry of fresh monsoon onions in November occurred in the market. There has been no entry of old summer onions to the Yangon market since the second week of December. The prices of onion stood at K4,800 per viss from the Myittha area and K4,400 from the Myingyan area.

Garlic
The prices of garlic from Shan State (Aungban area) hit a five-year high of K3,700-K5,000 per viss on 20 December. The lowest prices were K1,500-K3,000 per viss in early December.
Meanwhile, Kyukok garlic price hit the highest of K7,000 per viss on 8 March. The price declined to K2,600-K2,800 in the last week of June and K3,400 per viss at the end of 2022.

Potato
The wholesale prices of potatoes were K1,800-K2,100 per viss of Shan potato and K1,650 for Chinese potato in early 2022, whereas the price is relatively the same as K1,700-K2,100 per viss of Shan potato and K1,750-K2,250 per viss of Chinese potato.
On 14 September, Shan potatoes were priced at K1,500-2,300 per viss and Chinese potatoes were valued at K2,450-K2,500 per viss. At the end of 2022, the supply of Chinese potatoes outstripped the entry of Shan potatoes.

Jaggery, sugar
This year, the prices of sugar and jaggery climbed to the fresh peaks in history. When the sugar mills are running, the prices do not usually go up. In December 2022, the wholesale price of sugar hit K2,620 per viss.
The prices were estimated at K2,000 per viss of sugar and K1,950-K2,750 per viss of jaggery in early 2022. On 21 September, the maximum prices were K2,550 per viss of sugar and K3,700-K3,750 per viss of jaggery.

Tamarind
Only the prices of tamarind remained unchanged in 2022, ranging from K2,000 to K2,900 per viss in January and the prices stood at K1,900-K3,200 per viss at December-end.

Chilli pepper
The chilli pepper was recorded with the highest fluctuation in 2022. The price tremendously jumped to K31,000 per viss of bell pepper, K20,000 per viss of Moehtaung variety and K21,500 per viss of long chilli pepper processed in cold storage.
In early January, Moehtaung chilli pepper was priced at K8,000, while long chilli pepper from delta regions is valued at K5,000 and bell pepper was valued at K8,500-K9,500 per viss. At the end of the year, the fresh supply of new chilli peppers drove the prices down to K13,500 per viss for long chilli peppers, K12,000 for Moehtaung variety and K14,000 for bell pepper.

Source: The Global New Light of Myanmar

The delivery order-DO price decreased to K5,150 per viss (a viss equals 1.6 kilogrammes) in the Yangon edible oil market on 24 December 2022. The wholesale reference price of palm oil between 19 and 25 December was K4,415 per viss, indicating a price drop of K100 per viss to the previous week. With the drop of the reference price, the DO price of palm oil also decreased from K5,250 per viss on 20 December to K5,150 per viss on 24 December. The DO price of palm oil fetched K5,100 per viss on the morning of 26 December. Ko Aung Myint, a broker, told the Global New Light of Myanmar-GNLM that the price could be K5,075-K5,050 in the evening due to competitive prices in the market.

Domestically produced two types of palm oil are often sold at lower prices in the market this month compared to imported palm oil. From 19 to 25 December, the price for a tonne of oil at Yangon port was $1,006 and ready-to-pack (18 litres) oil cost $1,156 per tonne. The cost (purchase price) of oil was K4,327 per viss with an average exchange rate of K2,478, according to the relevant notification. The external palm oil dipped from 3,900 Ringgit on 23 December to 3,829 Ringgit on 24 December. Therefore, the reference price slumped again in the last week of December. Most of the buyers are speculating that the external exchange price in the Yangon edible oil market may drop below K5,000 per viss.

The wholesale reference was K4,630 per viss in early December and showed three consecutive weeks of decline. During the three weeks, the edible oil wholesale reference price decreased by K270 per viss. From 28 November to 4 December, the reference price was K4,425, while the DO price was K5,450. On 24 December, the DO price was only K5,150-K5,175 per viss, with a reference price of K4,415. The DO price of imported palm oil declined again by K50 per viss, while the reference price was only K4,360 this week.

It is known that there is speculation in the oil market that palm oil may fall below K5,000 per viss in the external market. Between 15 and 31 August 2022, the wholesale reference price of palm oil was K4,140 per viss, while the retail price in the external market fetched around K9,500 per viss. At the end of December, the reference price stood at K4,360, the DO price at K5,100 and the retail price at only K5,150 per viss. Therefore, during the two periods when the reference price was decreased by K200 per viss, the external exchange price fell by around K4,500 per viss. It is reported that the oil business operators are trading by paying special attention to the market and price situation this month.

Source: The Global New Light of Myanmar

The Trade Department under the Ministry of Commerce has been issuing import/export licences at the border trade zone and between 1 and 18 December, a total of 514 licences were granted at the Muse trade zone for Sino-Myanmar cross-border trade, the Ministry of Commerce stated.

Import/export and related business licences can be done through Myanmar Tradenet 2.0 and three licences for exports and 511 for imports of machines and parts, tangerine, stationery, pesticide and other commodities were issued in those days.

To facilitate the National Single Window system, have a single entry in trading and digitize the licensing system and related businesses, the Trade Department under the Ministry of Commerce has officially started the Myanmar Tradenet 2.0 portal from 1 November 2020. The trade value at Muse 105th-mile trade zone totalled U$S1.535 billion, comprising exports worth $1.35 billion and imports worth $182.493 million.

Source: The Global New Light of Myanmar

According to the Government-to-Government pact between Myanmar and Bangladesh, Myanmar has conveyed over 150,000 tonnes of white rice to Bangladesh, according to the Ministry of Commerce. Myanmar and Bangladesh inked a Memorandum of Understanding (MoU) on rice trade on 8 September this year. According to this MoU, Bangladesh has agreed to buy 250,000 tonnes of white rice and 50,000 tonnes of parboiled rice from Myanmar between 2022 and 2027. In accordance with the MoU, Bangladesh’s Directorate General of Food and Myanmar Rice Federation signed a sales contract for 200,000 tonnes of Myanmar’s white rice to be exported to Bangladesh.

As per the sales contract, Myanmar has exported approximately 15,000 tonnes of white rice to Bangladesh as of 19 December 2022. The remaining will be delivered by the deadline. As per the MoU between Myanmar and Bangladesh on the rice trade, 48 companies, under the supervision of the Myanmar Rice Federation, are to export 200,000 tonnes of rice to Bangladesh with Chinese yuan payment between October 2022 and January 2023. In line with the contract, white rice (ATAP) GPCT Broken STX variety will be delivered. The FOB prices were 2.78856 Yuan per kilogramme and 2788.56 Yuan per tonne.

The Export/Import division of the Trade Department issued 42 export licences worth over 534 million Yuan for 41 companies to convey 191,700 tonnes of rice to Bangladesh. Since 7 September 2017, Myanmar and Bangladesh have engaged in rice trade under the government-to-government pact. That MoU stated that Bangladesh has agreed to buy Myanmar’s white rice (250,000 tonnes) and parboiled rice (50,000) tonnes between 2017 and September 2022. Bangladesh’s Directorate General of Food and MRF signed the sales contracts as per the MoU and Myanmar sent 100,000 tonnes of rice to Bangladesh each in 2017 for the first time and 2021 for the second time, as per the sales contract. 

Source: The Global New Light of Myanmar

Trade activity at Muse-Mang Wein crossing point, which performed the majority of trade between Myanmar and China, is expected to resume after the upcoming Chinese New Year in 2023, said U Min Thein, vice chair of Muse Rice Wholesale Centre. China has restricted border access through Mang Wein border point amid the COVID-19 cases since 30 March 2021. This being so, it was about one year and nine months that the trade at Mang Wein was suspended. The border checkpoint is yet to be reopened. Since April 2022, China has shut down the Ruili-Kyalgaung crossing point and it was eased on 10 December 2022.

Following the reopening of Kyalgaung border, the checkpoints linking to Kyalgaung crossing point in Muse trade post (Nantaw, Sinphyu and Mang Wein) are likely to be reopened soon, traders engaged in Muse border forecast. “On 10 December, Kyalgaung crossing point was reopened. Both people from Shweli (Ruili) and Kyalgaung are free to pass the point. It raised expectations of traders for the reopening of Mang Wein, Nantaw and Sinphyu checkpoints. Speculation about resumption of cross border trade at those points is going around,” U Min Thein said.

On 18 October, Myanmar’s officials and counterparts from Tathong, Yunnan Province negotiated the promotion of bilateral cross-border trade and reopening of Mang Wein checkpoint through a video conferencing. Prior to the pandemic, Kyalgaung was the busiest and biggest trade post and it performed the highest trade in the China-Myanmar border. Those traders involved in Muse trade zone are relying on the Ruili city. There is a direct trade channel to Ruili through Kyalgaung point so the traders have a smooth transport. This route brings easier and better access to Ruili from Muse border post. Only when the Kyalgaung border post is reopesned can the trade boost, traders elaborated.

China shut down all the checkpoints linking to Muse border amidst the COVID-19 pandemic. Of the checkpoints, Kyinsankyawt has resumed trading activity from 26 November 2021. 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, Kanpaiti, Chinshwehaw and Kengtung. Majority of the trade is carried out through Muse post, Ministry of Commerce’s data indicated. 

Source: The Global New Light of Myanmar

The value of trade with Myanmar’s main trade partner China through maritime and sea trade channels crossed US$5 billion in the first seven months (April-October) of the 2022-2023 financial year, comprising exports worth $1.995 billion and imports valued at $3.082 billion, according to statistics released by the Ministry of Commerce. Myanmar primarily exports agri-products to China through the five land borders (Muse, Lweje, Chinshwehaw, Kampaiti and Kengtung.

However, trade in agricultural products was frequently stopped on account of China clamping down on illegal trade on land borders. Furthermore, China stepped up border control measures to contain the spread of COVID-19, hindering border trade in the previous years. At present, although China eased coronavirus restrictions, only the Kyinsankyawt crossing out of the Sino-Myanmar land borders linking to the Muse post are reopened.

The value of bilateral trade with China stood at $4.3 billion in the 2021-2022 mini-budget period, $9.82 billion in the 2020-2021FY, $12 billion in the 2019-2020FY, $11.36 billion in the 2018-2019FY, $6 billion in the past mini-budget period, $11.78 billion in the 2017-2018 financial year and $10.8 billion in the 2016-2017FY respectively. Rice, beans and pulses, corn, fruits and vegetables, fishery products, rubber, chilli peppers and other food commodities are exported to China, whereas machinery, plastic raw materials, consumer products and electronic appliances flow into Myanmar. 

Source: The Global New Light of Myanmar

According to the government-to-government pact between Myanmar and Bangladesh, Myanmar has conveyed over 140,000 tonnes of white rice to Bangladesh, according to the Ministry of Commerce. Myanmar and Bangladesh inked a Memorandum of Understanding (MoU) on rice trade on 8 September this year. In line with this MoU, Bangladesh has agreed to buy 250,000 tonnes of white rice and 50,000 tonnes of parboiled rice from Myanmar yearly between 2022 and 2027. In accordance with the MoU, Bangladesh’s Directorate General of Food and Myanmar Rice Federation signed a sales contract for 200,000 tonnes of Myanmar’s white rice to be exported to Bangladesh.

As per the sales contract, Myanmar has exported a total of 143,225 tonnes of white rice by 19 ships to Bangladesh as of 12 December 2022. The remaining will be delivered by the deadline. As per the MoU between Myanmar and Bangladesh on the rice trade, 48 companies, under the supervision of the Myanmar Rice Federation, are to export 200,000 tonnes of rice to Bangladesh with Chinese yuan payment between October 2022 and January 2023. Following the contract, white rice (ATAP) GPCT Broken STX variety will be delivered. The FOB prices were 2.78856 Yuan per kilo and 2,788.56 Yuan per tonne.

The Export/Import division of the Trade Department issued 42 export licences worth over 534 million Yuan for 41 companies to convey 191,700 tonnes of rice to Bangladesh. Since 7 September 2017, Myanmar and Bangladesh have engaged in rice trade under the government-to-government pact. That MoU stated that Bangladesh has agreed to buy Myanmar’s white rice (250,000 tonnes) and parboiled rice (50,000) tonnes yearly between 2017 and September 2022. Bangladesh’s Directorate General of Food and MRF signed the sales contracts as per the MoU and Myanmar sent 100,000 tonnes of rice to Bangladesh each in 2017 for the first time and 2021 for the second time, as per the sales contract. 

Source: The Global New Light of Myanmar

Myanmar’s exports significantly grew by about 15 per cent in the eight months of the current financial year 2022-2023 from the corresponding period of last year. Between 1 April and 2 December of the current FY2022-2023, Myanmar’s exports soared to US$11.17 billion from $9.7 billion in the year-ago period. The figures reflected a sharp increase of over $1.44 billion compared with a year-ago period, according to data from the Ministry of Commerce.

The negative pandemic consequences dealt a severe blow to the agriculture, livestock and mineral sectors during the past mini-budget period.  As China eases some virus rules and regulations, the export sees a slight increase in the agriculture sector this FY. At present, the CMP garment sector raises its head again after the vaccination programme to the factory workers as well. Of the seven export groups, fisheries, mineral and other exports showed a decrease compared to the year-ago period.

The values of export were registered at $2.37 billion for agro products, $18.2 million for livestock, $491.2 million for fishery products, $205 million for minerals, $97.14 million for forest products, over $7.65 billion for manufactured goods, and $320.35 million for other goods. The country’s export sector relies more on the agricultural and manufacturing sectors. The Ministry of Commerce is focusing on reducing trade deficit, export promotion, import substitution and market diversification.

Source: The Global New Light of Myanmar

The Myawady Border Trade Zone under the Department of Trade notified that import licence application can be made as long as there are export earnings in the bank account of applicants, except for goods that are not allowed to be imported via the Myanmar-Thai land borders. According to the Export/Import Bulletin 10/2022, export earnings and other incomes including salary and wage remittances of Myanmar nationals in other countries will be allowed to use in the importation of commodities.

Therefore, importers will have to use the proceeds to make payments for imports through their respective banks. Among the land borders with neighbouring Thailand, the Myawady border trade zone, which imports most goods to the domestic market, made trading worth US$1,494.796 million in over eight months from 1 April to 2 December of this financial year, stated the Ministry of Commerce.

Among these, imports from Thailand were worth $978.878 million. The cross-border trade accumulated $1,654.481 million year on year with $938.591 million worth of imports from Thailand. Therefore, there was a decrease of $199.972 million year on year while imports increased by $40.287 million, according to the Ministry of Commerce.

Source: The Global New Light of Myanmar

According to the Government-to-Government pact between Myanmar and Bangladesh, Bangladesh has been purchasing Myanmar’s white rice. The country has shipped rice directly from Pathein Industrial City since 2 November 2022. Between 1 and 8 December, 5,260 tonnes of rice were loaded onto the two ships in the second batch and the MCL-12 ship carrying 2,650 tonnes of rice departed in the morning of 8 December 2022 from the Ayeyawady International Industrial Port AIIP in Pathein Industrial City, Ayeyawady Region to Bangladesh.

Earlier, Myanmar conveyed rice to Bangladesh through Yangon Port and Thilawa terminals. In the first batch from 2 to 22 November 2022, 10,565 tonnes of Aemahta rice (five-per-cent broken) were shipped by four ships directly from Pathein city to Bangladesh. The country delivered 2,610 tonnes of rice by MCL-19 ship on 1 December and 2,650 tonnes of rice by the MCL-12 ship on 8 December in the second batch, totalling 5,260 tonnes. On 7 December, the MCL-18 ship arrived at the   Ayeyawady International Industrial Port and further exports are to be undertaken.

Myanmar’s white rice direct delivery from Ayeyawady Region to Bangladesh accumulated 15,825 tonnes, with 10,565 tonnes in the first batch and 5,260 in the second batch. “The main export item from Pathein Port is rice. If Bangladesh buys corn in addition to rice, there is an adequate supply of corn in the region. Myanmar has indicated readiness to export corn depending on the market demand. The rice shipment for the second batch has finished. We plan to export agricultural products from Ayeyawady Region to foreign trading partners. For the initial stage, efforts are being made to complete the rice shipment first,” said U Tun Tun, deputy director of the Ayeyawady Region Consumers Affairs Department.

Earlier, the second batch of rice shipment was slated for the second week of December. However, Myanmar managed to ship the rice in the first week to Bangladesh as rice outputs from Ayeyawady Region increased.  All the stakeholders involved in a supply chain including the Ayeyawady Region Government, departments concerned and private businessmen are being exerted to meet the rice demand of Bangladesh to ship them directly from the region. The direct rice shipment from Ayeyawady Region, Myanmar’s rice bowl, to the foreign markets brings about economic opportunities for rice millers, farmers and traders and employment opportunities for local communities.

Source: The Global New Light of Myanmar