Pulses traders mull scope for possibility of market gain

LOCAL NEWS

There are no sellers in the domestic pulses market despite the demand as black gram traders are holding stock in their hands to sell them for high profit.
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 peas (tur) from Myanmar for five consecutive years from the 2021-2022 financial year to the 2025-2026FY.
Although India will continue buying Myanmar’s black gram, restrictions 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.
Furthermore, the traders are keeping the stocks in their hands and waiting for a good time to receive high prices, resulting in a drop.
The prices of black gram in Myanmar are correlated with India’s demand, forex rate and export and import policies. It is hard to speculate about the price.
In early July, black gram prices soared to K1.7 million per tonne. The price slid to K1.6 million on 25 July.
In 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 $403.058 million worth of over 531,567 tonnes of various beans and pulses to foreign trade partners between 1 April and 15 July 2022 in the current financial year 2022-2023. The country shipped $309.053 million worth of over 391,987 tonnes of pulses and beans to foreign markets through the sea route, and 139,579 tonnes worth $94.005 million were sent to the neighbouring countries through the land border.
Myanmar exported US$1.57 billion worth of over two million tonnes of various pulses to foreign trade partners last financial year 2020-2021. The country shipped $966.4 million worth of 1.24 million tonnes of pulses and beans to foreign markets through the sea route, and 786,920 tonnes worth $604.3 million were sent to the neighbouring countries through the 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 which is primarily demanded by India, while pigeon peas, green grams and chickpeas are cultivated in Australia and African countries besides Myanmar. – NN/GNLM

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