Posts in category: TRADING

ACCORDING to the association, the Yangon Gold Entrepreneurs
Association (YGEA)’s gold market trading will be conducted online. YGEA Chair U Myo Myint said that YGEA is launching virtual trade through the Zoom application every Sunday to lead the trading via an online system.
“We have started trading online. We also have a problem with Wi-Fi for online trade. Most of our traders are the old-age people. They cannot use phone expertly. Most of our traders are over 50 years old. Now, we are teaching them how to use the phone. Every Sunday, we are giving them knowledge via training. The virtual trade is also available through the Zoom application on every Sunday at the YGEA office. Once we’ve all learnt how to use, we will start steadily,” he elaborated.

YGEA is carrying out the gold trading through the online system intending to prevent the people from being crowded so that the spreading of COVID-19 can be prevented. “An online system has come to be in the mainstream in our effort to prevent the spreading of the pandemic. We don’t want too many people to gather. Additionally, the gold shops could save their time by trading the gold via an online system directly. Nowadays, the trading market has widely expanded with traders from states and regions being engaged,” said the YGEA chairperson.

On account of the second wave of COVID-19, the Yangon gold market was temporarily closed on 5 September 2020. During the suspension period, the pure gold fetched over K1.3 million per tical (0.578 ounces or 0.016 kilogrammes) in the domestic market. The gold was then priced at over K1.3 million in early October when the gold trading was resumed. On 1 January 2021, the pure gold in Myanmar was traded at a price of over K1.3 million per tical while the global gold price hit US$1,890 per ounce. During the first wave of COVID-19 in Myanmar, Yangon gold market was closed between 29 March and 17 May.

Source: The Global New Light of Myanmar

Myanmar’s external trade between 1 October and 18 December in the current financial year 2020-2021 touched a low of US$6.14 billion, a sharp drop of $2.065 billion compared with the corresponding period of the FY2019-2020, according to the Ministry of Commerce. According to the ministry data during the same period in the previous FY, trade stood at $8.2 billion. As of 18 December 2020, Myanmar’s export was worth $2.87 billion, which plunged from $4.1 billion registered a year-ago period. Meanwhile, the country’s import was valued $3.27 billion, showing a decrease of $824 million compared with the last FY. Both sea trade and border trade dropped amid the coronavirus impacts. The neighbouring countries tightened border security and limited the trading time to contain the spread of the virus.

Moreover, the severe container shortage has become the biggest disrupter in shipping amid the coronavirus impacts, on the back of robust demand on the Asia-Europe and transpacific trade. Container shipping costs are drastically surging. Pandemic-induced container shortage pushed up the freight rates to almost triple in Myanmar, causing delays for traders.
Myanmar exports agricultural products, animal products, minerals, forest products, and finished industrial goods. At the same time, it imports capital goods, raw industrial materials, and consumer goods. The country’s export sector relies more on the agricultural and manufacturing sectors. The government is trying to reduce the trade deficit by screening luxury import items and boosting exports.

Myanmar’s foreign trade has shown a 10-per-cent increase, year over year, under the incumbent government. Myanmar has already surpassed the total trade value target of $34 billion for the last FY, said an official from the ministry. Last FY2019-2020, Myanmar’s external trade reflected an increase of $1.5 billion compared with the FY2018-2019 as it increased from over $35 billion to $36.6 billion. Under the National Planning Law for the Financial Year 2020-2021, Myanmar intends to reach an export target at US$16 billion and import at $18 billion. The Ministry of Commerce is focusing on export promotion and market diversification. Since 2011, the Ministry of Commerce has adhered to its reform policy. A series of moves to liberalize and open the economy have been introduced through policy development to improve the trade environment.

Source: The Global New Light of Myanmar

Myanmar rice export to China via Muse 105th Mile trade zone plummeted by half, according to the Muse Rice Wholesale Centre. Although Myanmar exported 60,000 bags of rice and broken rice daily to China from earlier October to 20 December; only 30,000 bags of rice can now be exported after 20 December. Myanmar rice export to China has dropped because Myanmar exported only the rice permitted for 2020 and the rice is stockpiled in Muse wholesale centre. It is also explained that the 2020 rice export permit from China will end on 31 December. The rice from lower Myanmar does not reach the Muse border area because the permitted rice stock and the remaining rice are being exported to China before 31 December. There are many rice stocks in the Muse border area.

The price of broken rice is also a bit on the decline because of the high charges of export trucks and depreciation of the exchange rate. However, according to Muse Rice Wholesale Centre, Myanmar exported about 30,000 bags of rice and broken rice to China daily. The export rice to China is sold for ¥128 per 50-kg bag for broken rice, ¥136 per pack for Thuka rice and ¥137 per bag for Nga Sein rice in Muse market, according to Muse Rice Wholesale Centre. China will issue the new rice export permits for 2021 in January. Also, China is likely to give more licences to the companies this year than last year, according to the rice traders’ opinions.

The Chinese government has granted rice export licences to 15 Chinese companies in the year 2020. It is heard that the Chinese government would issue the rice permits for 2021 to 50 companies. But, any confirmation has received yet. If the Chinese government confirms it, the export value will increase three times than in 2020. And, the border trade volume will increase compared to the previous years. Myanmar has opened four border trade zones with China; Muse and Chinshwehaw in Shan State, and Kampaiti and Lweje in Kachin State. Majority of the trade is carried out through the Muse land borde.

Source: The Global New Light of Myanmar

China will construct just two out of the tree trade zones slated for development at the Muse-Ruili (Kyegaung) designated areas. Under the initial Muse-Ruili (Kyegaung) project agreement, the two governments had agreed to designate the area as a Core Zone for trade between China and Myanmar while the Kyu Kote – Pang Sang – Wantain- Kyin San Kyawt zone would be designated as an Export Product Manufacturing Processing and Warehouse Area.

But, the Chinese government drafted plans only for two projects in Shweli (Kyegaung) and Wantain instructed Myanmar to pursue development work on the sites of these two projects, said U Khin Maung Lwin, assistant secretary for the Ministry of Commerce. He also said that they had designated three locations initially. The Chinese government had been expected to implement the trade zone from Kyu Kote to Pang Sang. They had discussions with them to develop these places. But according to the latest development, they made plans only for Kyegaung and Wantain. Currently, ground surveys are being completed to assess the land conditions in the designated areas.

When the land areas are designated in longitude and latitude for the Muse-Ruili Core Zone, the two governments will sign a China-Myanmar Framework Agreement. The Muse-Ruili Core Zone is envisioned to be a triangle-shaped area, stretching from Nam Phat Kar to northern Namkham and up to Kyukote (Pangsang) in the south. The trade zones are part of the China-Myanmar Border Economic Cooperation Zones. Up until recently, Myanmar had been expecting to develop core zones in three locations- Muse, Chin Shwe Haw and Kan Pite Tee.

Source: Myanmar Times

The pigeon peas market saw a slightly downward trend in price after India’s demand has dried up, said U Zaw Moe, general secretary of Monywa Commodity Depot. The newly harvested pigeon peas are entering the market. As India stopped buying the beans, the market is cooling off. The price fell by K2,000-3,000 per basket. It declined from K28,500-K29,000 to K24,000 per basket. The prevailing price this year is lower than last year’s price amid the COVID-19 consequences. Last year, it was priced above K30,000 per basket at least, said a trader. Earlier, the pigeon peas (red grams) stockpiled in Monywa were delivered to India, and about 75 per cent of stocks were cleared at that time. As there is no demand by India so far, the traders are keeping them for now.

Normally, the pigeon peas produced in Monywa are sent only to the India market. So far, there is no direct link between Monywa and India markets although the Sagaing Region shares border with India. The peas are exported through traders from Yangon. Next, the price of chickpeas remained unchanged at K27,000-28,000 per basket in Monywa market. Meanwhile, the sesame fetched a low price during its early harvest season. The sesame price showed an uptick from K54,000 to K56,000 per basket on the back of demand by China. Also, the peanut is well traded. “The sesame and green grams are selling well in the domestic market. Of sesame varieties, black sesame is of the best quality. Exporters prefer the black and white sesame to the brown and red sesame,” U Zaw Moe said. Myanmar’s pigeon peas are primarily shipped to India and also exported to Singapore, the US, Canada, Pakistan, the UK, and Malaysia. But, the export volume to other countries rather than to India is minimal.

In the 2016-2017 budget year, over 160,000 tonnes of pigeon peas were shipped to foreign countries, while in the 2017-2018 financial year, exports topped 220,000 tonnes. Myanmar ships over 1.6 million tonnes of different varieties of pulses, especially mung beans, with an estimated worth of US$1 billion, to other counties in the 2018-2019FY. Since 2017, India has been setting import quota on beans, including black bean and pigeon peas. Therefore, the growers face difficulties to export their beans to the India market. Myanmar has to export black bean and pigeon peas under a quota system and limit period. Consequently, there is no guarantee that we could get the prevailing market price next year; the market observers shared their opinions. Following the uncertainty in markets of black bean and pigeon peas, the association suggested, in October-end, that the growers cultivate black-eyed bean more.

Source- The Global New light of Myanmar

In the nearly two months from October 1 to November 27 of the 2020-2021 fiscal year, Myanmar’s foreign trade exceeded $ 4,300 million, leaving a trade deficit of nearly $ 400 million, according to the Ministry of Commerce. From October 1 to November 27 of the 2020-2021 fiscal year, the foreign trade volume was $ 4,325.303 million. In the same period last year, the trade volume was $ 5854.550 million. Compared to the same period last year, the trade volume decreased by $ 1,529.247 million in the first two months of the current fiscal year compared to the same period last year.

The trade deficit means that imports are higher than Myanmar’s exports. In the first two months of the 2020-2021 fiscal year, Myanmar’s exports were worth $ 1,962.670 million, imports $ 2,362.633 million and a trade deficit of $ 399.963 million. Myanmar’s foreign trade is expected to reach $ 34.7 billion in the 2020-2021 fiscal year and a trade deficit of $ 2.3 billion, according to budget figures for the 2020-2021 fiscal year. In the 2019-2020 fiscal year, Myanmar’s total foreign trade amounted to $ 36.665 billion. Of this, $ 17.643 billion came from exports and $ 19.022 billion from imports.

Union Minister for Economy and Trade Dr Than Myint said that despite the high incidence of COVID-19 in the world, Myanmar has not had a major impact on trade due to cooperation in non-stop trade. Despite the high incidence of COVID-19 in the world, our efforts to ensure that trade is not disrupted have not had a significant impact on trade. As a result, Myanmar’s trade volume reached $ 36.66 billion in the 2019-2020 fiscal year, an increase of $ 582 million in exports and $ 35 million in trade from the previous fiscal year 2018-2019.

Source: Daily Eleven

Myanmar Investment Commission (MIC) will grant a permit on the raw and sesame seeds importation proposal if the ministries concerned will give the go-ahead, said U Thant Sin Lwin, Director-General of the Directorate of Investment and Company Administration (DICA). “We have to ask for the opinions of the Ministry of Commerce if the proposal is related to import/export business. For pulses such as beans and sesame seeds, we call for opinions from the Ministry of Agriculture Livestock and Irrigation. We will continue the processing upon the response of the ministries concerned,” he affirmed.

The ministries balance on local production and harvest season. Also, they assess whether the imported goods are suitable for the domestic market. The commission will issue the permit upon the approval of the ministries concerned, he added. Last November, Maha Nyi Ahko Company sought import permit for 10,500 tonnes of raw sesame and 32,000 tonnes of peanuts (with food waste estimated 20 per cent) under zero tariff with the contract manufacturing process. The Ministry of Commerce asked for the opinions of Myanmar Pulses, Beans and Sesame Seeds Merchants Association and the association asked again for the views of the owners of the respective depots where sesame and peanut are primarily traded on 12 November. The owners of the respective depots raised the objection to the raw sesame and peanut importation.

The association was asked opinions on sesame raw material importation three years ago and responded that the peanut and sesame are locally produced, and it should not be allowed for importation, said U Min Ko Oo, secretary of the association. Nevertheless, the association cannot afford to do anything as the raw materials can be imported to produce value-added items for exports under the existing law, he continued. Myanmar’s peanut and sesame are of high quality with the use of natural fertilizer. They are offered fair price by China, Japan, the Republic of Korea and Thailand. Additionally, Myanmar grants tax-exempt on raw material import if the goods are exported with a few exceptions. It has a direct impact on the interest of the local growers.

Myanmar has liberalized the trade and Mandalay depot sent 70 per cent of agricultural products to China through the land border. It generated the country’s revenue and brought benefits to the growers and traders. The border trade has halted during the early outbreak of COVID-19 and has resumed for now. As a result of this, the import of individual company can harm the local market. Otherwise, foreign buyers can confuse outsourcing materials with locally produced materials. Market manipulation may arise later on. We are welcome with the trade openness. Yet, it will harm the interest of the country, local growers and traders. Mandalay depot suggested that the import is not allowed. The depot showed the further opinion that vacant, fallow and virgin land should be treated and the contract farming system is required to be conducted to boost the production and offer guaranteed pricing to motive the farmers to produce a quality crop.

Source- The Global New light of Myanmar

Myanmar’s coffee export has fallen by half this year on the weak demand triggered by the coronavirus. Typically, Myanmar exports about 500-600 tonnes of coffee to external markets. The volume plummeted to 300 tonnes this year, said U Thi Ha, general secretary of Myanmar Coffee Association. Following the development of a vaccine for the COVID-19, the association is expecting a recovery of the market next year. The impacts of coronavirus hurt the coffee industry as the lockdown, and physical distancing caused a reduction in consumption.

The COVID-19 crisis changed the dynamics of coffee consumption this year, and roasters, cafe owners and distributors are identifying specific trends in Asian markets that may expedite recovery to a new normal, according to ASEAN Coffee Federation. Myanmar primarily produces Arabica coffee. Specialty coffee fetches as much as US$4,500-10,000 per tonne. Specialty coffee beans are highly demanded due to their high quality and organic production.

“Myanmar’s coffee has already earned a good reputation. It has penetrated markets in Asia such as Hong Kong and Singapore, European countries, and the US, and it has a good potential in the global market,” said an official from the Agriculture Department. Myanmar’s coffee has grabbed a market share in the US, with the support of USAID and Winrock International NGO. Efforts are being made to penetrate markets in Japan, the Republic of Korea, and Canada.

At present, the export of coffee is extremely low as the COVID-19 hit hard the western countries. In response to the COVID-19 in the coffee sector, innovative trade offer and digital market are required to adapt to a new normal, coupled with client-oriented supply. Moreover, the coffee growers and producers need to increase quality to enter competitive markets. As a result of this, the government-backed loan is needed to help the stakeholders survive in the crisis.

There are 40,000 acres of highland coffee plantations and about 10,000 acres under lowland coffee in Myanmar, totalling 50,000 acres. Shan State is the leading producer of coffee beans. Coffee beans are harvested between December and February. They are distributed and exported throughout the year after harvest time. Myanmar yearly exports around 400 tonnes of coffee. In 2019, it shipped about 500 tonnes of coffee to foreign markets.

Source: The Global New Light of Myanmar

Myanmar’s external trade between 1 October and 20 November in the current financial year 2020-2021 touched a low of US$3.7 billion, a sharp drop of $1.5 billion compared with the corresponding period of the 2019-2020FY, according to the Ministry of Commerce. During the same period in the previous FY, trade stood at $5.23 billion, stated the ministry’s data.
As of 20 November 2020, Myanmar’s export was worth $1.6 billion, which plunged from $2.69 billion registered a year-ago period. Meanwhile, the country’s import was valued $2.07 billion, showing a decrease of $470 million compared with the last FY.

The decrease in Myanmar’s foreign trade was attributed to the drop in exports and imports in the current FY amid the COVID-19 crisis. Myanmar exports agricultural products, animal products, minerals, forest products, and finished industrial goods. At the same time, it imports capital goods, raw industrial materials, and consumer goods. The country’s export sector relies more on the agricultural and manufacturing sectors. The government is trying to reduce the trade deficit by screening luxury import items and boosting exports.

Myanmar’s foreign trade has shown a 10-per-cent increase, year over year, under the incumbent government. Myanmar has already surpassed the total trade value target of $34 billion for the last FY, said an official from the ministry. Last FY2019-2020, Myanmar’s external trade reflected an increase of $1.5 billion compared with the FY2018-2019 as it increased from over $35 billion to $36.6 billion. Under the National Planning Law for the 2020-2021 budget year, Myanmar intends to reach an export target at US$16 billion and import at $18 billion. 

Source: The Global New Light of Myanmar

Myanmar’s pineapple exports are blockaded due to the lack of the Phytosanitary Certificate (PC) issued by Myanmar’s Agriculture Department which is required for export to China, according to northern Shan State Pineapple Producers and Exporters Association. Myanmar’s pineapple has penetrated to China market. Yet, the trade halted as there is no G-to-G agreement between Myanmar and China. Myanmar has sent samples of avocado and its products to 40 countries. Thailand’s buyers also eyed Myanmar’s pineapples. However, a memorandum of understanding (MoU) matters in international trade to ease the trade barrier. MyanTrade under the Ministry of Commerce officially linked with buyers. The Agriculture Department is responsible for issuing the PC.

There is potential crop production as opium poppy substitution in the northern Shan State area. It will bring job opportunities for the local people. About 60,000 tonnes of pineapples are yearly produced from over 20,000 acres in the north of Shan State. For now, the growers are experiencing financial hardships as they cannot sell them out of the country during the COVID-19 crisis. Myanmar’s pineapples have reached markets of Beijing and Shanghai, China, for seven years. China daily demanded around 2,000 tonnes of pineapples. Earlier, they directly came to the farm to buy the pineapples.

A tonne of pineapple fetched K240,000. We do not even need to go to Muse to seek buyers. So, we are desperate for the legal trade pact. Hsipaw and Lashio mainly produce corn, watermelon and pineapples. Watermelon has both legal and illegal trading routes. If the government do not initiate the move for pineapple exports within three years, the growers will shift from pineapples to other crops for sure. At present, the growers are interested in pineapples as the sample of pineapples to five international markets reaped the excellent results. The dehydrated pineapple also attracts the buyers. However, capital is necessary as our factory can produce only the sample and still cannot manage a commercial scale.

Additionally, the northern Shan State is referred to as the brown area of the country owing to the armed groups. We do not see any NGO in the area. Only the US Agency for International Development (USAID) visited the place. The pineapple is grown across the country. The northern Shan State area produces the quality pineapple. The samples of dehydrated pineapple have been sent to the US, Dubai, Singapore, Germany and Japan. They gave good feedback. A tonne of dehydrated pineapple is worth K12 million. China is the leading buyer of Myanmar’s pineapples, and it has banned importation since 16 June 2019, for the lack of PC. Earlier, 50 per cent of pineapple production is consumed locally, and the remaining goes to China. Myanmar yearly exports nearly 40,000 tonnes of pineapples to China. Last year, pineapple grower groups from northern Shan State lost over K700 million worth 25,000 tonnes.

This year, there are about 35,000 acres of pineapples across the country; with 55 per cent in Hsipaw Township, 17 in Lashio, nine in Tangyan, six in Hsihseng, and 13 in Namsang and other townships. The pineapples are abundant during its harvest season (July and August). If the trade channel is still suspended this year, growers will suffer more losses, the association stated. Furthermore, pineapple growers want this sector to be listed on the priority sector of the COVID-19 Fund of the government. Also, the government’s long-term loan for pineapple paste, juice and vinegar businesses are required.

Source- The Global New light of Myanmar