The prices of oil crops remarkably inflated in the Monywa market following changes in trade policy on the basis of the forex market.
Furthermore, the pulses market came to an abrupt stop for two days owing to red tape in licencing. Some traders keep the stocks in their hands and sell them at a higher price only, the traders stressed.
“The prices of oil crops rocketed. The prices of sesame seeds are up by K4,000-5,000 per basket. The prices of peanuts also increased by K500 per viss (a viss equals 1.6 kilogrammes) on account of low supply. Pigeon pea price is also gradually increasing,” the traders said.
Earlier, export earnings for beans were allowed to be made with Yuan-Kyat or Baht-Kyat direct payment. Starting from 30 June, transactions for beans and pulses are instructed to be paid in US dollars.
After export earnings were set to be paid in dollars, the official exchange rate against the US dollar was set at K1,850. Meanwhile, a dollar is worth around K2,500 in the unauthorized FX market, resulting in the large gap between the official and unofficial exchange rates.
According to the newsletter (7/2022) dated 23 May issued by the Ministry of Commerce, traders need to seek an export licence for various beans and pulses, oil crops and edible oil whatever trade routes (sea, border or air) they use in order to alleviate the impacts on the domestic edible oil prices amid the global oil export slump.
Recent changes in export policy hampered trading in the Muse 105th-mile trade zone.
The prices inflated at over K5,000 per viss for peanuts, K140,000 per bag of chickpeas, K141,000 per bag of pigeon peas, and K270,000 per bag of white sesame. — Lulay, KK/GNLM