Myanmar exported over 190,000 tons of rubber, worth around US$250 million, to its trade partners in the past 11 months, surpassing the targeted volume of 170,000 tons for the current fiscal year, according to figures released by the Ministry of Commerce.

The increase in earnings in the current fiscal was pegged at $60 million. About 150,000 tons of rubber was shipped to foreign markets in the 2017-2018FY, and Myanmar had raised its export target to 170,000 tons for the 2018-2019 FY. The target was increased because the production acreage increased up to 800,000 this year. According to the Myanmar Rubber Planters and Producers Association (MRPPA), there are over 1.63 million acres of rubber plantations across the country, of which, latex is produced on 700,000 acres last year.

China accounts for 70 per cent of Myanmar’s rubber exports. Singapore, Indonesia, Malaysia, Viet Nam, South Korea, India, and Japan also purchase rubber from Myanmar. At present, rubber prices are ranging between US$1,500 and $1,700 per ton, depending on the rubber variety (Ribbed Smoked Sheets, or RSS, 1,2,3, 4, and 5). Rubber prices can vary depending on the dollar rate, global crude oil prices, and the global political climate.

All stakeholders in the rubber supply chain are making concerted efforts to produce profitable quality rubber. The MRPPA has also called for rubber zones in the producing regions and states, in addition to main producer Mon State. At present, the rubber law is still being drafted. The government and rubber associations are endeavouring to set up a central rubber market after the rubber law comes into effect. Rubber is primarily grown in Mon and Kayin states and Yangon, Bago, and Taninthayi regions.

Source: Global New Light of Myanmar 

Myanmar has exposed illegal import worth of 12.99 billion kyats (8.65 million U.S. dollars) from September 2018 to July 2019, according to the Private Sector Development Committee (PSDC) Sunday. The exposure was made following the formation of Illegal Trade Control and Prevention Groups by the PSDC, led by Myanmar Vice President U Myint Swe.

Illegal import through the border was threatening the existence of small and medium enterprises. In order to increase cooperation between union level departments to reduce the rising global illicit trade environment index due to illegal trade, the Illegal Trade Eradication Steering Committee was also formed to effectively eradicate such illegal trade countrywide.

As of Aug. 9 during 2018-19 fiscal year, Myanmar’s trade volume reached 30.04 billion U.S. dollars, in which the private sector shared 25.1 billion U.S. dollars or 84 percent. As of the end of July 2019, 1,779 foreign investments worth of 81.25 billion U.S. dollars poured into Myanmar, while 1,605 local investments injected 19.05 trillion kyats (12.69 billion U.S. dollars) into the country.

Source: Xinhua

THE Department of Trade introduced Myanmar Tradenet 2.0 during a workshop on E-trade Opportunities and Challenges in Myanmar at the UMFCCI in Yangon on August 23, 2019.

Myanmar Tradenet 2.0 will assist the National Single Window system and is scheduled to launch in early 2020. It will allow merchants to apply for import and export licenses, withdraw them and make payments from anywhere with an internet connection.

Myanmar Tradenet has been around for some time and this iteration is an upgrade. The Ministry of Commerce began providing an online system for licensing processes and trade facilitation services in 2004, and it has been upgrading their systems annually. It became fully online in 2016, however if all relevant departments can work online, for providing verification in some instances, then everything would be much smoother.

Source: Global New Light of Myanmar

Myanmar exported over 400,000 tons of broken rice worth over US$100 million to 36 countries over the past 10 months with 50 percent of the total tonnage going to Belgium, according to Myanmar Rice Federation.

From October 1, 2018 to August 2 this year, 400,689 tons of broken rice was exported to 36 countries earning US$107.147 million. Belgium alone imported nearly 190,000 tons of broken rice from Myanmar worth US$50.547 million, accounting for over 47 percent of the total export. Likewise, 68,000 tons of broken rice worth over US$18 million was exported to Indonesia, over 25,000 tons worth US$6 million to China, nearly 23,000 tons worth US$5 million to the Netherlands, and over 20,000 tons worth over US$5 million to the UK.

An official from the Ministry of Commerce said Myanmar exported over 1.97 million tons of rice and broken rice worth about US$600 million in over 10 months of this fiscal year from October 1 to August 2. This year saw a fall of over US$350 million as the total tonnage fell by over 820,000 tons. China and EU, major rice export markets, purchased less rice from Myanmar this year.

Source: Eleven Media 

As Myanmar is seeking foreign markets for its tea leaves, about 10 tons of green and dry tea leaves will be exported to Germany soon, said Chairwoman Daw Nyo Nyo Sein of Myanmar Tea Procedures Association. Majority of tea leaves are grown in northern and southern Shan State, and distinguished into various categories based on taste and quality for local markets, while organic tea leaves are aimed for foreign buyers.

Germany has agreed to purchase 10 tons of tea leaves, and the delivery is expected near future. Myanmar has exported organic raw tea leaves to the United States from 17 to 20 tons every year. The price for Myanmar tea leaves ranges from US$6 to $10 per kilogram based on the quality.

Daw Ru Par, director of Yathar Wady Company in Mandalay, said “We received positive feedback on tea leaves from foreign customers. We are informing at the foreign trade shows that green tea leaves can also be consumed in addition to drinking. As 90 per cent components in tea leaves benefit for health, we have to guarantee for its quality along the supply change from raw to finished products.

Source: Global New Light of Myanmar 

An agreement for overland barter trade has been signed on July 25, between Mandalay Rice Development Company (MRDC) and Kunming Green Color Trade Co., Ltd from China’s Yunnan province. Under this, the former will trade 100,000 tonnes of rice – stored in Muse or newly harvested rice – to the latter for an equivalent in other trade goods starting next month. Myanmar long-grain rice, which is very hard to sell due to high tariffs in European countries, will be prioritised.

MRDC managing director U Sai Kyaw said both companies would be the intermediaries for goods to be traded under the barter system. “Chemical fertilisers, construction material, electric appliances and agricultural machinery manufactured from Yunnan province can be imported with a 5 percent discount on the market price,” he said, adding that both sides were now awaiting the green light from their respective governments to start trading.

He said interested companies can import goods from China in partnership with MRDC while any company interested in selling their rice produce can also partner it. The barter arrangement is expected to benefit local traders and balance trade. Due to volatile import tariffs imposed on Myanmar goods by the Chinese authorities, traders often resort to smuggling goods across the border. This, in turn, leads to frequent border checks and trade bans, which disrupts trade and results in losses.

Source: Myanmar Times 

During over nine months of this fiscal year, Myanmar earned over 220 million US dollars from the exports of over 0.17 million tons of rubber, according to an official of the Commerce Ministry. From October 1 to July 5 of 2018-2019 fiscal year, the rubber export earnings hit 225.189 million US dollars. Last year, the export earnings from exports of 135,982 tons of rubber reached 163.777 million USD. This year, the rubber export earnings increased by over 61.412 million USD and the rubber export volume, by over 40,582 tons.

Rubber is mainly grown in Mon and Kayin State. It is also grown in Yangon, Bago and Tanintharyi Regions. There are nearly 500,000 acres of rubber plantations in Mon State and nearly 270,000 acres in Kayin State. The country produces about 200,000 tons of rubber a year. More than 90 per cent of rubber are exported and the remaining eight per cent, are for domestic use. Myanmar mainly exports rubber to China, according to the Myanmar Rubber Growers and Producers Association. Myanmar also exports rubber to Malaysia, Singapore, Indonesia, South Korea, Japan, Taiwan and India.

Source: Eleven Media 

After opening its fifth outlet in Sagaing Region, Shwebo Rice Trading Center is planning to change its corporate status to public to be on par with other trading centers in Myanmar. It is planned to go public by next year and ensure all our rice mills are in line with regulations by the rice trading season next year. This will help elevate the center’s presence in the international market and make it easier to conduct export activities.

Public companies are required to obtain permission from both the Directorate of Investment and Company Administration and the Securities Exchange Commission of Myanmar before they are officially allowed to sell their shares over the counter. Unlike a private company, which has a shareholder limitation of not more than 50, there is no shareholder limit for public companies.

Currently, 70pc of rice from Shwebo, Sagaing, is exported to China via the border however there are strict quotas in place to limit illegal trade. To export via the maritime route, Shwebo is trying to conform to the rice import regulations set by China.

Source: Myanmar Times 

Border trade between Myanmar and neighboring Thailand reached over US$ 3.14 billion as of 28 June in 2018-2019 fiscal year (FY) which started in October, according to the official weekly statistical report of the Ministry of Commerce.

The value of export between two countries hit $2.25 billion, while its import reached $ 889 million as of 28 June in this FY. The country mainly conducts border trade with Thailand through seven border checkpoints, Tachilek, Myawady, Kawthoung, Myeik, Hteekhee, Mawtaung and Maese gates.

From 1 October to 28 June this year, Hteekhee border gate topped with most bilateral border trade value of $ 1.97 billion, followed by Myawady with $ 708 million and Myeik with $194 million. Myanmar primarily exports fishery products such as crab, fish and shrimp, as well as onions, sesame, dry tea leaves, coconut and turmeric, while consumer goods, cosmetic machinery, food products, while agricultural equipment and track cars are imported into the country from Thailand.

Source: Global New Light of Myanmar 

The Myanmar Invest Commission (MIC) last month permitted China’s Kangrui Agriculture & Livestock Development Company to invest in the raising of cattle in Myanmar. The investment will involve an injection of US$37 million in funds. A breeding facility will be established in Mahlaing Township, Mandalay Region. Kangrui, which is 90 percent owned by Shanghai Penghe Supply Chain Management and 10pc by Dehong Penghe Agriculture Development, will be the first wholly-owned Chinese outfit to invest in breeding cattle in Myanmar.

The cattle will be bred domestically and mainly exported to China. Investors are starting to take interest in the cattle business after the Ministry of Commerce in October 2017 officially permitted breeders to export Myanmar-bred cattle in an effort to control illegal exports. Myanmar cattle are mainly exported to China via the Muse border trade gate, as well as to Thailand. Of the 261 companies that applied for export permits from the government since late 2017, 94 that met requirements set out by the authorities have been selected. The country has since exported nearly 500,000 cattle from December 2017 through April 2019.

According to the animal census conducted in May 2018, there were 1.8 million buffaloes and 9.7 million dairy and beef cattle in Myanmar. The MIC has also permitted Thailand’s wholly-owned CP Livestock to invest in three cattle businesses worth over US$78 million. These include investments in a pullet farm and pig breeding farm in Yangon as well as an animal feed facility in Mandalay. So far, foreign investors in the livestock and fisheries sector have channeled funds totaling US$600 million towards expansion in Myanmar, according to DICA.

Source: Myanmar Times