Black bean price down by over K100,000 per tonne due to no demand

By Nyein Nyein

The price of black bean plunged by over K100,000 per tonne as the demand has dried up, said U Min Ko Oo, the secretary of Myanmar Pulses, Beans and Sesame Seeds Merchants Association. The black bean fetched K1,152,500 per tonne in October-end on the back of India’s demand. It plummeted to K1,041,000 per tonne on 1 December, with a sharp drop of K100,000 per tonne. Before the General Election, the black bean was priced K1,072,500 per tonne on 7 November. The price slipped to over K1,050,000 per tonne on 12 November.
“Before Deepavali Festival, the beans were highly demanded. India traders purchased Myanmar’s beans at US$900-940 per tonne for Fair and Average Quality due to the consumption requirements in their side. The prevailing price of bean stands at $800-810 per tonne. The price fell by $100, which is valued K100,000 on local currency. India’s low demand causes the price to plummet in domestic markets,” said U Min Ko Oo.
The domestic bean market is positively related to the law of supply and demand, he continued.
Myanmar has a stock of below 100,000 tonnes of black bean, and about 30,000 tonnes of pigeon peas are left in warehouses, the association stated.
On 1 October, India issued a notification to purchase 150,000 tonnes of black beans instead, and the import deadline is March 2021. The licence will be equally granted for India’s companies.
Although Myanmar does not have adequate stock, for now, it can reach the quota of 150,000 tonnes, along with the beans which will be harvested next season, the MPBSSMA secretary affirmed. On 22 May, India rapidly changed the import period of black bean (400,000 tonnes) to three months by August-end 2020 from the earlier set deadline of March 2021, prompting Myanmar’s bean body to call for an extension of the deadline, as per its official notice. Although the bean body asked to extend the August-end deadline, India still has not responded to the request. Myanmar exported only 100,000 tonnes of black beans then, the association stated.
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 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. (Translated by Ei Myat Mon)

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