Myanmar The Golden Land

Land Area : 676,577 Sq.Km.Capital : Nay Pyi TawPopulation : 58.38 MillionLanguage : Myanmar, English widely usedCurrency : KyatsPrincipal Exports : Rice, Pulses & Beans, Marine

Products, Minerals, Gems and Natural Gas.

Major Trading Partners : India, Singapore, Thailand, China, Hong Kong, Malaysia, Japan, Indonesia

Emerging Economy

• Myanmar is the hottest emerging economy for resources. It's been a previously ultra-closed society that's now starting to open up.

• Myanmar's economy is on track to grow by 6.5% in FY 2013-14 and the govt aims to increase the GDP by 9.1 % in FY 2014-15.

• Foreign exchange reserves rose to an estimated $4.6 billion at March 2013.

GDP Myanmar

2009/10 2010/11 2011/12 2012/13 2013/14Projected

GDP (USD Bn) 38.1 49.6 56.2 55.3 59.4

GDP Per Capita 587 742 900 868 915

Source:http://www.adb.org/countries/myanmar/economy

Myanmar Today

• A New Foreign Investment Law passed on November 2012 .

• Huge opportunities for Foreign Investment in many sectors including farming and food processing.

• Foreign Banks have opened Representative Offices.• Business Visa on Arrival . • World Bank pledges USD$2 Bn towards development of

Health ,Energy and Agriculture.• The Govt. issued operating licenes to two Telecom

giants (Ooredoo and Telenor)

Pulses Trade from Myanmar

• The main exports of Beans and Pulses from Myanmar includes :

• Black Matpe• Toor Whole• Green Mung Beans• Chick Peas • Gram Whole• Black Eye Beans• Red Kidney Beans• Butter Beans• Lab Lab Beans• Bamboo Beans

Black Matpe

• For Black Matpe two main qualities are exported :– FAQ - Fair Average Quality – SQ - Special quality

• The Crop harvest time is February and March.• The average crop size is about 6 lac MT.• The Major Markets for Black Matpe are :– India, Pakistan, U.A.E, Malaysia, Japan and Srilanka.

Last 5 Years Export of Black Matpe from Myanmar

2009 2010 2011 2012 2013 -

100,000

200,000

300,000

400,000

500,000

600,000

700,000 621,273

491,632

594,813 616,125 628,123

Qty MT

Qty MT

Monthly Price Trend for BM(FAQ) for 2013

January

Febru

ary

Marc

hApril

May

June

July

August

September

October

November

December

0

100

200

300

400

500

600

700584 595

639

531584

FOB Yangon Price in USD

FOB Yangon Price in USD

Toor Whole

• There are various qualities and varieties of Toor Whole available in Myanmar.

• The varieties are distinguished on the basis of colour and size.• The majorly exported varieties are :

– Lemon, Linkhey shefla, Malai Shefla, Shwebo, Red and White (Bold, Medium and small), Sagaing, etc.

• The crop harvest time is December, January, February • The Average crop size is 2.5 ~3 lac MT.• The Major Market for Toor Whole is India.

Last 5 years Export of Toor Whole from Myanmar

2009 2010 2011 2012 2013 -

50,000

100,000

150,000

200,000

250,000

300,000

350,000

400,000

450,000 412,089

142,376

262,968

370,318

191,673

Qty Mt

Qty Mt

Monthly price trend of Toor Whole for 2013

January

Febru

ary

Marc

hAril

May

June

July

August

September

October

November

December

0100200300400500600700800

623

730 709

571 558 571

FOB Yangon Price in USD

FOB Yangon Price in USD

Green Mung Beans• The various qualities of Green Mung Beans exported are :

– Pedi shwewar, Anya Shwewar, Pakokku, Taungoo Shwewar, etc.

• The crop harvest time for the various varieties are:‒ Pedi Shwewar :January ~ February‒ Anya Shwewar :May ~ October‒ Taungoo Shwewar :October ~ November‒ Pakokku :October ~ December

• The Average crop size is about 3.5 lac MT .• The Major Markets are :

– India, China, Vietnam, Malaysia, Japan, Thailand, Indonesia, Pakistan, U.A.E , etc.

Last 5 Years Export of Green Mung Beans from Myanmar

2009 2010 2011 2012 2013 -

50,000

100,000

150,000

200,000

250,000

300,000

350,000

286,169

215,862 213,238

275,753

192,740

Qty MT

Qty MT

Monthly Price Trend for Green Mung Beans in 2013

January

Febru

ary

Marc

hApril

May

June

July

August

September

October

November

December

780

800

820

840

860

880

900

920

940

839

858

905

877

929919

FOB Yangon Price in USD

Last 5 years Export of other four items

Qty in MT

2009 2010 2011 2012 2013 -

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

Chick PeasBlack Eye BeansRed Kidney BeansButter Beans

Export from Myanmar in 2013(country wise)

75.7%

6.0%

3.0%2.5%

2.4%1.6%1.4% 1.4% 1.5% 0.8% 3.7%

Export

IndiaVietnamChinaIndonesiaMalaysiaUAEThailandJapanPhilippinesPakistanOthers

India

Factors Affecting the Myanmar Market

Impact of Rupee fluctuation(Monthly Average Rates)

January

February

March AprilMay

JuneJuly

August

September

October

November

December

0100200300400500600700800900

1000

584531

584623571

571

839877 919

BMTWGMB

USD v/s INR

Trading Constraints

• Only advance TT payment is prevalent• Non acceptance of Myanmar Documents by many • International Banks.• Non availability of Weighbridge.• Absence of foreign banks.

Export Trend of Beans and pulses from Myanmar in Qty for last 5 Yrs

2009 2010 2011 2012 2013 -

200,000

400,000

600,000

800,000

1,000,000

1,200,000

1,400,000

1,600,000 1,465,979

918,619

1,200,701

1,393,793

1,087,776

Qty MT

Qty MT

Export Value of Beans and Pulses from Myanmar in USD million for last 5 yrs.

2009 2010 2011 2012 2013 -

200

400

600

800

1,000

1,200

887 891 1,009

872

704

Value in USD(million)

Value in USD(million)

Export of value-added product of pulses 2013

Export (Tonnes)

Value(USD Million)

1 Black Matpe14,644 11.28

2 Green mung beans 25,912 26.17

3 Toor Whole 6,450 5.99

Total 47,006 43.44

Expected crop for year 2014

BM TW GMB CP BEB RKB -

100,000

200,000

300,000

400,000

500,000

600,000

700,000

575,000

175,000

450,000

125,000

30,000 15,000

Qty MT

Qty MT

The Way Forward

• Value added /Processed pulses will be exported more• Myanmar will reach the potential market very soon

with better and improved quality.

2014 Export Outlook

• The average export from Myanmar is 1.2million MT for the past 5 years.

• In 2014 the export is expected to be above average i.e., almost 1.3million MT .

Thank you !

Shyam Narsaria

Arvee International Pte Ltd.