THE prices of pulses are soaring high in the domestic market after the Central Bank of Myanmar raised the reference exchange rate for the US dollar.
The CBM made the fourmonth fixed rate of K1,850 hike to K2,100 on 5 August.
Consequently, the price of black gram (urad called in India) rocked to K1,787,000 per tonne on 9 August from K1,667,500 per tonne recorded on 5 August. The figures indicated a sharp rise of K120,000 per tonne within four days.
Similarly, pigeon pea prices jumped from K1,612,500 to K1,870,000 per tonne on 9 August, showing a significant rise of K250,000 per tonne within four days.
Despite the price skyrocketing in the market, black gram transactions are rarely seen. Furthermore, there is a shortage of pigeon peas stock in the market.
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.
The prices of black gram in Myanmar are correlated with India’s demand, fuel price hike, forex rate and export, and import policies.
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 $426.411 million worth of over 558,700 tonnes of various beans and pulses to foreign trade partners between 1 April and 29 July 2022 in the current financial year 2022-2023. The country shipped $332.411 million valued at over 419,120 tonnes of pulses and beans to foreign markets through the sea route, and $94 million valued at over 139,579 tonnes were sent to the neighbouring countries through land borders.
Myanmar exported $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 valued in 1.24 million tonnes of pulses and beans to foreign markets through the sea route, and $604.3 million worth of 786,920 tonnes 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