Thai traders give lower price to fresh chilli due to mixed quality

According to the chilli exporters, the fresh chilli exported to Thailand is offered lower price because of mixed species of the fresh chilli.
The fresh chilli exported to Thailand through Myawady border area is found mixed with at least three types of chilli species. The local farmers are growing the chilli species they like on the same farmland. That is the reason why the fresh chillies are mixed with a variety of chilli species. The chilli-demanding country will offer a reasonable price only if the traders export only one species. If the traders are still exporting the mixed chilli species, the country will offer the low price.
Besides, the fresh chillies are carried in the cold storage containers to Myawady from the chilli producing townships. Sometimes, the chillies are damaged if the trucks have to stay overnight for some reasons, and the refrigerator is off for about two hours. Simultaneously, the chilli traders from other countries would offer low prices when the quality of chilli drops. The chillies will also be damaged when packed in strainers bags and shipped in the trucks without cold storage. So, the chilli should be exported only with cold storage, not counting the extra shipping costs.
Myanmar exports about 80 tonnes of fresh chilli daily to Mae Sot, Thailand via Myawady border trade zone. The fresh chillies are sold for US$650 per tonne.
The export requires attachment with a Phytosanitary certificate issued by the Myanmar Agricultural Department and CO-Form or Form-D from the Department of Trade.
Now, Thailand is buying the fresh chilli for 50 or 60 baht per kilo. The maximum price of fresh chilli is 80 or 90 baht per kilo depending upon the freshness quality.
Now, the prevailing price of fresh chilli in Thailand is only 50 or 60 baht per kilo because there are three or four species of mixed chillies in addition to damages. If the chilli is gravely damaged, the traders in Thailand will offer only 17 baht per kilo, according to the chilli exporters.
Therefore, the local chilli growers need to grow high-quality chilli seed and cultivate only one variety of chilli species on the same farmland. The traders are also required to export the chilli using cold-storage trucks without consideration of the transport charges. By doing so, Myanmar chilli will have a strong market in the buyers’ countries, which will offer reasonable prices.
At present, Klohtoo Wah Logistics Co., Ltd is exporting the high-quality chilli baskets, which can accommodate 7 kilos of fresh chillies. Their brand is PRO Chilli and is being exported to Bangkok, Thailand via Myawady border trade zone. The company is also buying excellent quality chilli from local growers by paying a great price to ship chilli to other countries.
Myanmar chillies are grown mostly in Kyaukse, Yamethin, PyinOoLwin in Mandalay region and Natmauk in Magway region and Ayeyawady region.
The chilli in Ayeyawady could be harvested only in January or February. The residents grow two types of chilli species such as Moe Htaung and Auk Swe chilli species. The growers are cultivating mostly Moe Htaung chilli species which yield higher and are easy to pick up.
Myanmar traders are exporting the fresh chilli only to Mae Sot, Thailand. Last year, the fresh chillies were exported to Malaysia through Thailand. Malaysia and the Philippines are interested in purchasing Myanmar chilli. However, Myanmar chilli market competes with Viet Nam. Myanmar chilli is also cheaper than that of Viet Nam chilli in terms of the selling price. But the quality of Myanmar chilli is not comparable to that of Viet Nam.
So far, there is no high-quality chilli in Myanmar that can be exported to Malaysia. The high-quality chilli can fetch 100 baht per kilo, according to the chilli exporters.
(Translated by Hay Mar)

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