Black gram price bounces to K1,661,000 after three weeks

The prices of black gram (called urad in India) regained to K1,661,000 per tonne in the domestic market.
The black gram price touched a low of K1,537,500 per tonne on 11 July, whereas the price jumped to K1,661,000 per tonne on 29 July. The figure reflected an increase of K120,000 per tonne in the past three weeks.
Kyat depreciation against the US dollar in the local forex market is the main reason for the price rise. At present, a dollar is valued around K2,800 in the informal exchange.
According to a Memorandum of Understanding between Myanmar and India, India will import 250,000 tonnes of black gram and 100,000 tonnes of pigeon pea (tur) from Myanmar for five consecutive years from 2021-2022 financial year to 2025-2026 FY.
Although India will continue buying Myanmar’s black gram, restriction in Myanmar’s forex market hampered export and import.
The Foreign exchange earned by locals in Myanmar has to be deposited in accounts at the authorized banks and exchanged for the local currency at the Central Bank of Myanmar’s reference rate of K1,850. This new policy hindered work procedures. Moreover, there is a large gap between the regulated exchange rate and the unofficial exchange rate on the over-the-counter-market. As a result of this, exporters are closely observing the market to buy the goods.
Yet, market prices in neighbouring India do not decline. The prices of black gram in Myanmar are correlated with India’s demand, fuel price hike, forex rate and export, import policies. It is hard to speculate about the price.
Last September 2021, the prices hit an all-time high of K2 million per tonne when the US dollar exchange rate with Myanmar currency hit over K3,000 in the local forex market.
Myanmar conveyed $409.82 million worth of over 539,311 tonnes of various beans and pulses to foreign trade partners between 1 April and 22 July 2022 in the current financial year 2022-2023. The country shipped $315.8 million valued over 399,731 tonnes of pulses and beans to foreign markets through sea route, and $94.005 million valued over 139,579 tonnes were sent to the neighbouring countries through land border.
Myanmar exported US$1.57 billion worth of over 2 million tonnes of various pulses to foreign trade partners last financial year 2020-2021. The country shipped $966.4 million valued 1.24 million tonnes of pulses and beans to foreign markets through sea route, and $604.3 million valued 786,920 tonnes were sent to the neighbouring countries through land border.
Myanmar yearly produces approximately 400,000 tonnes of black gram and about 50,000 tonnes of pigeon peas. Myanmar is the top producer of the black gram that is primarily demanded by India, while pigeon peas, green grams and chickpeas are cultivated in Australia and African countries beside Myanmar.—NN/GNLM