September 05, 2022
The mung bean growing acreage can decline in the next bean cultivation season, according to Myanmar Trade Promotion Organization. Despite the price of mung bean being high in the market currently, the higher costs of fuel oil, bean seeds and other inputs can cause a decline in bean cultivation acreage, it is learnt. Additionally, the yield per acre can also decline.
According to the review of the Ayeya Trade Centre, the price hike of the mung beans is not natural: it is merely the result of an unnatural hike in the exchange rate of Myanmar Kyat versus the US dollar. On 31 August, the exchange rate rose to around K4,500 per one US dollar, causing the mung bean price to rise to K2.1 million per tonne in the domestic market. Similarly, the price of pigeon peas rose to K21,20,000 per tonne on 31 August, which is a record high.
Furthermore, the price hike can also be attributed to the soaring price in Chennai and Mumbai markets at the end of August as well as to the decline in the bean export from Myanmar. As there is low supply with high demand, the price has soared. According to NAFED, the mung bean in the Indian market is short of supply, requiring the purchase of 50,000 tonnes of mung bean, and currently, they are procuring 2,000 tonnes per day, it is learnt.
India is the major importer of Myanmar beans and pulses, and their demand has enabled the signing of an MoU with Myanmar according to which Myanmar has to export 0.25 million tonnes of mung beans and 0.1 million tonnes of pigeon peas annually from 2021-2022 to 2025-2026 financial years.
Therefore, it is required to observe the rise and fall of the mung bean market and the price is related to the demand of India, the price of the fuel oil and the exchange rate of Myanmar Kyats versus USD.
In September of last year, the exchange rate of USD against Myanmar Kyat rose to K3,000 per dollar, resulting in a sharp rise in the prices of the beans and pulses; the domestic bean market saw the mung beans selling for a record high price of K2 million per tonne. And this year is seeing a record-breaking price in the market.
For the 2022-2023 financial year, between 1 April and 26 August, 519,868.963 tonnes were exported via sea for US$418.152 million while 140,937.537 tonnes of rice were exported via border trade for $95.195 million. Therefore, the total tonnes exported are 660,806.500 which is worth $513.347 million.
In the 2020-2021 financial year, the export via sea was 1,242,775.231 tonnes for $966.407 million whereas the export via border trade was 786,920.651 tonnes for $604.300 million, bringing the total tonnes to 2,029,695.882 for $1,570.707 million.
Myanmar yields 0.4 million tonnes of mung bean per annum whereas the annual yield of pigeon peas is 50,000 tonnes, it is learnt. Mung bean which is chiefly imported by India is grown mainly in Myanmar while pigeon peas, green peas and garden peas are also cultivated in Africa and Australia in addition to Myanmar.— NN/GNLM