CNI News

17,October  2023

As export through border trade routes has been restricted, coffee must be exported only by sea in the coming coffee season, said coffee growers and exporters. 

The traders who export coffee from the border were getting more profit than the traders, by sea, which were complained to the department concerned, so export from border trade has been suspended reportedly. 

So, coffee must be exported by sea in the coming coffee season, said U Min Hlaing, founder of the Sithar Company Ltd, to CNI News.

" The coffee traders from the border will have to export by maritime officially. Buyers probably will not buy coffee if it costs them a lot. Other countries also grow coffee. Secondly, in the past, border trade worked better for the growers and the traders. The traders who shipped legally by sea could not compete with the border traders. In maritime trade, the main thing is the 50-50 policy ( 50 percent of the foreign currency earned from foreign trade must be exchanged at around 2,000 kyats and the rest 50 percent at around 3,000 kyats). Shipping by sea is better, busier and longer. But the traders who shipped by sea couldn't compete with the border traders. The reason why exporting coffee through border trade has been suspended." he said.

While seeing the coffee fruits on the coffee tree

Myanmar coffee was being mainly exported to Thailand and China and it was also being exported to western countries and European countries by sea. 75 percent of Myanmar coffee was being exported through border trade each year.

At present, as coffee must be exported by sea, coffee growers cannot get the money at the rate of exporting through border trade and because of export earning policy, coffee export would reduce, said a coffee grower from southern Shan State to CNI News.

" To tell you frankly, Europe and America can't buy all the coffee produced here in Myanmar. In fact, Myanmar coffee had been sold out because it was being sold from border trade. Coffee farmers can't benefit from higher price but beneficial to exporters. As a matter of fact, it shouldn't be like that. Coffee farmer will grow more coffee if they get higher price. if the supply overtakes the demand, the price will decline. But now, the supply can't catch up with the demand. If the coffee is not allowed to export from border, then coffee export will decline." he said.

They wanted the government to allow them to export coffee limitedly so that it would be convenient for them. said coffee farmers. Myanmar coffee is mainly grown in Mandalay Region, Shan and Kayin States and its cultivation area is about 50,000 acres. 

Coffee is reaped between December and March and exported between April and May.

Over 9,000 tons of coffee are produced in Myanmar each year and Arabica coffee is being exported to the world market.