May 20
THE export price of rice to China is neither rising nor declining at present, said U Min Thein, vicechair of Muse Rice Wholesale Depot.
The profit condition is depending on the short-haul trucking cost as the price remains unchanged, he added.
“The price is stable in China. Thuka rice variety fetches 140 Yuan in Ruili (Shweli), while the price of broken rice is around 120 Yuan. If the short-haul trucking service costs are higher, the profit will decrease. If the trucking cost is going cheap, the profit will be higher,” he elaborated.
Before 16 May 2022, China banned Myanmar trucks to enter their side because of the coronavirus protocol. Myanmar goods can be exported to China through the Kyinsankyawt border with the use of a Chinese short-haul trucking service.
As a result of this, the cost of Chinese short-haul trucking tremendously rose to K10 million per truck, whereas the trucking was worth only K700,000-800,000 when Myanmar truckers were allowed to enter China, U Min Thein continued.
Myanmar sees a big slump in exports. The number of trucks to China through the Kyinsankyawt border post drastically dropped from 400 to 30 for now.
This being so, the volume of rice and broken rice export plunges from 60,000 to 4,000 bags per day, he stressed.
The permit of the driver-substitution system slashes transport costs. However, it will take time to return to trade normality on the Muse border, U Min Thein continued.
“We need to carefully consider the market condition. When China eases the COVID rules this year, the number of trucks engaged in cross-border trade will increase,” U Min Thein shared his opinion.
China shut down all the checkpoints linking to the Muse border amidst the COVID-19 pandemic. Of the checkpoints, Kyinsankyawt has resumed trading activity from 26 November on a trial run. Myanmar daily delivers rubber, green gram, chilli pepper, onion, mango and other food commodities to China through the Kyinsankyawt post.
Myanmar has opened five border trade zones with China – Muse, Lweje, Kampaiti, Chinshwehaw and Kengtung. The majority of the trade is carried out through the Muse land border, the Ministry of Commerce’s data indicated. — NN/GNLM
