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Market situation still unknown despite watermelon export to China

Although Myanmar exported the watermelon to China, the market situation is still unknown, according to the fruit commodity depot. Currently, about 21 fruit loaded trucks reached in Wamding haven’t yet arrived at the fruit market. Consequently, the actual cost and price in China side are not identified yet. During the COVID-19 period, although the trucks were reached on the Chinese side through the border checkpoints, they should be stopped in the red zone for 24-hour quarantine, customs clearance in the yellow zone and re-tested and obtained COVID-19-free certificate in the F zone. Besides, the Chinese’s customs system has been transformed from a border trade system to a normal trade system.

It has been also reported that the export tax will be levied on the overseas shipping system which has been delayed due to the pending changes in China’scustoms system, according to the Khwanyo Fruit Warehouse. The traders head that cost of customs duty will be around 800- 1,000 yuan per tonne. The required documents and banking system need to be updated even with the normal trading system. Now, they are negotiating with the Chinese authorities. It will take time, said a trader from the Khwanyo Fruit Warehouse. Therefore, the watermelon growers and traders should only harvest after receiving and observation the information. Currently, there are about 500 fruit loaded trucks in Shwe Lwin Inn ground in Kyinsankyawt border checkpoints.

Thus, the fruits trucks reached in Muse 105 th mile are temporally stopped to transport Kyinsankyawt checkpoint, according to the fruit traders. The truck’s load of watermelon will be brought to China via Chinese trucks after they unload their goods in Myanmar. Last 26 September, the Kyinsankyawt border post between Myanmar and China has reopened on a trial run. Myanmar’s goods weighing five containers can be delivered to China then. On 27 November, two truckloads of watermelon were put into a container and sent to China. During the COVID-19 period, the transport charges are over one time higher than the previous rate, it is learnt. Transport charges were around K800,000 to one million, whereas it costs approximately K2 million for now. Traders cannot expect trade facilitation according to the changes in China’s policy during the COVID-19 pandemic. If the restrictions are eased and negotiation goes smooth, the trade will go back to normality.

Source: The Global New Light of Myanmar

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