CNI News
16 October 2023
The beginning of domestic avocado season this year is showing great potential to become a better market than last year and the price is going up, according to avocado farmers. Avocados were sold 2,500 to 4,000 kyats per kilo last year.
However, this year, the floor price has been up to 5,000 kyats. Moreover, the floor price of Hass type avocados has been estimated to get from 6,000 to 10,000 kyats.
The reason why the price is that high is because of foreign demand in increase and rising foreign exchange rate, said Ko Kyaw Soe Min, secretary of Myanmar Avocado Producer and Exporter Association (MAPEA), to CNI News.
" In fact, Hass season has not started. But other types have started. For example, Amara is sold 5,000 kyats per kilo at wholesale price. The retail price is 8,000 kyats. Burkania is sold at 4,000 kyats per kilo. At present, growers benefit from the price. Hass type avocado that is exported abroad has not started. The floor price is opened at 4,000 kyats per kilo, the price at which all avocados will be bought. But it hasn't been bought. The price has been opened. Hass will stary in November. We have estimated its floor price between 6,000 and 10,000 kyats. The price is higher than last year. We started opening at 2,500 kyats per kilo last year. Avocados were being sold at 4,000 kyats for long and later reached 6,000 kyats. The first thing is the exchange rate. When we sell avocado to Thailand, because the exchange rate goes up, we can sell at higher price. The second thing is demand. The price depends on these two things. If avocado farmers sell early, the price will decline. However as those who sell the whole avocado farm get higher price, it's not bad." said Ko Kyaw Soe Min.
Myanmar Hass Type of Avocado
Although the price of avocado is high, growers need to control the quality and not to sell urgently and if not so, it could affect the price, pointed out avocado exporters.
Although the price is high this year, because of export earning policy, it is not convenient for traders to export and in spite of getting orders, they could export some countries only, said an avocado exporter from Shan State, to CNI News.
Myanmar Avocados
" 50-50 export earning policy is not convenient for us. We are receiving orders continuously. India, Thailand and China are interested in buying Myanmar avocado. Even though they want to see avocado farms here for themselves at present, it's not been convenient for us." he said.
According to export earning policy of the government, 50 percent of export revenue must be exchanged at the rate of 2,100 kyats per US dollar that is designated by the Central Bank of Myanmar and the remaining 50 percent, at the rate of 2,920 kyats per US dollar. This policy makes traders get less profit, said traders.
