Prices of mung beans, pigeon peas rebound after India announces quota

The prices of mung beans and pigeon peas (red gram) have bounced back in the Yangon pulses market after India announced its quota for pulses importation on 29 March.
 

On 29 March, the market price of beans stood at K688,000 per ton for mung bean RC, K838,000 per ton for mung bean SQ (special quality), and K761,000 per ton for pigeon peas (red gram). On 1 April, the prices increased to K740,000 for mung bean RC, K885,000 for mung bean SQ, and K843,000 for red gram, according to the Yangon beans and pulses depot.
 

On 2 April, the FOB price of mung beans stood at US$500-520 for fair quality and $610-630 for SQ.
India, the main buyer of Myanmar beans and pulses, had halted importation for two months. On 29 March, India announced an import quota of 150,000 tons each for mung bean and green grams, and 200,000 tons for pigeon peas for its financial year starting 1 April, according to the pulses market.

 

Following India’s announcement of the import quota, the prices of mung beans and pigeon peas soared dramatically.
 

Myanmar produces about 400,000 tons of mung beans and 300,000 tons of pigeon peas. India accounts for 70 per cent of Myanmar’s mung bean exports and 95 per cent of pigeon peas exports.
 

Between 1 October, 2018 and 1 February 2019, Myanmar exported over 338,630 tons of mung beans, worth $163.8 million, and over 52,690 tons of pigeon peas, valued at $24 million.
 

On 17 October, 2015, mung bean RC prices had reached a record high of K2,456,000 per ton.
India’s move to restrict importation of pulses in August, 2017 severely affected growers in Myanmar. The price of mung bean plummeted sharply to K382,000 per ton on May 4, 2018. Thereafter, the price rose to K988,000 per ton on 6 November, 2018 and fell to K570,000 on 1 February, 2019.

 

Before India put restrictions in place, the price of pigeon peas stood at K1.8 million. The price dropped to K306,000 per ton on 25 October, 2017. Thereafter, the price rebounded to K834,000 on 6 November and touched K843,000, 2018 on 1 April, 2019.
 

The uncertainty in the pulses market led to a significant drop in cultivation and yield of pigeon peas. Mung bean production also decreased slightly.
 

In late 2017, the related departments suggested that growers switch to other crops.
“Earlier, Myanmar produced 150,000-200,000 tons of pigeon peas. This year, the output is likely to total only 50,000 tons. Mung bean production is estimated to be around 400,000 tons this year,” according to the pulses market.

 

“India’s quota limit of 500,000 tons is effective for all exporter countries. Myanmar is the sole foreign market to satisfy India’s market demand for mung beans, whereas India’s quota limit on pigeon peas exceeds Myanmar’s pigeon peas production. Therefore, Myanmar has better chances of exporting mung beans and pigeon peas to India. Traders cannot predict the price at this juncture,” said a merchant.

 

 Maung Sae Aung

(Translated by Ei Myat Mon)