The Myanmar Pulses, Beans and Sesame Seeds Merchants Association hopes the country would be able to garner more export income in 2015-16 fiscal year than the previous FY despite a drop in export volume, thanks to a price hike of black gram.
Starting from the harvest of beans in 2015-16, the local price ranged from $800 to $2,000 per tonne of black gram (locally known as ‘black matpe bean’), while the export price ranged from $1,300 to $1,500 (K1.6-1.85 million).
“In the previous year, we earned $700 to $800 per tonne of black gram and total exported amount was 600,000 tonnes in 2014-15. We exported only about 400,000 tonnes this year. The export amount dropped because of lower production due to bad weather. But as the price increases, we will be able to earn more than last year,” the secretary of the Association U Min Ko Oo told Myanmar Business Today.
“Last year price of black matpe was K800,000 per tonne, but this year the price increased starting from the time of harvest to around K1.4-1.6 million,” he said. The reason behind the price increase is India’s advance payment system, he added.
In Myanmar black gram is planted in the months of November and December and harvested in the months of February and March. Indian merchants have already bought the black gram that would be harvested in February and March.
“During the months of February and March the opening price for FAQ (fair average quality) is $1,400,” U Min Ko Oo said.
The price of black gram in local market peaked at K2.65 million per tonne in August 2015, according to Bayintgnaung Wholesale Market traders. According to the Association, black gram was purchased with prepaid system and the price is K1.5 million per tonne now.
“Mung bean from the whole country is coming into the market starting from the month of December and is being traded fast. Black gram comes into the market in early February and there is only very little buying and selling,” broker Ko Lar Lu from Bayintnaung Wholesale Market, said.
“Mung bean comes in mainly from Kyaukpadaung, Shwebo and Magway. Black gram comes in from Naypyitaw, Pyinmanar and the delta region. Black gram from Bago region has not come in yet. After that there will be more Black Gram in the market,” he said.
As the currency exchange rate dropped under K1,240 (for US dollar) in early February, the recent price of black gram and mung bean has also dropped by K20,000 per tonne.
“The price of mung bean is between K1.4 to 1.6 million but it was levelled at K1.4 million. As the exchange rate dropped under K1,300 the price dropped about K20,000. It is also the same for black gram,” he said.
According to the Ministry of Commerce, in 2015-16 fiscal year until January 22 Myanmar exported 400,000 tonnes of black gram fetching $385.8 million, 135,000 tonnes of mung bean for $130 million and 230,000 tonnes of green gram garnering more than $233 million.
“So far in this fiscal year, the amount of the export of pulses and beans has been more than 800,000 tonnes and we earned more than $770 million,” U Win Myint, director of the Ministry of Commerce, said.
According to the Ministry of Commerce, 1.27 million tonnes of pulses and beans were exported in the 2014-15 fiscal year earning about $1 billion.
Author: Zayar Nyein | 2 March, 2016 08:45 am | Vol 4 Issue 9
Credit : Myanmar Business Today