CNI News
19 December 2023
As India has fixed the price of its onion when exporting not to sell at the price below 800 rupees per ton, the price of Myanmar onion also has increased, according to onion traders.
Because India is the country that is exporting most to Bangladesh and ASEAN countries, its fixation of the price made the Myanmar onion increase, said the traders.
Because the price of Indian onion has increased, the countries that buy onion have bought Myanmar onion more.
Myanmar onion prices will remain high until March 2024 because of India's price fixation, U Aung Myint, an onion trader from the Myingyan onion wholesale center, told CNI News.
" India has fixed its free on board (FOB) price of its onion not to sell at the price below 800 rupees per ton. And then, the prices have become higher there. So, if Myanmar can sell at the lower price than India, buyers will buy all the Myanmar onion. As India's FOB price is about 4,800 kyats per viss, the price will be between 5,500 and 6,000 kyats in the Philippines, Vietnam and Thailand due to transportation charges. Unless India lowers the price, the price of onion will never decline." said U Aung Myint.
Trucks carrying onions
Over 100,000 visses (360,000 lb) are entering the Myingyan onion wholesale center each day and the amount of onion bought to export is almost the same as that of entrance reportedly. However, it is difficult to export through China-Myanmar border trade, Myanmar Thailand border trade and Rakhine-Bangladesh border trade.
Exporters have to be shipping by sea and due to high cost, the prices of onion are declining a bit. Moreover, the quality also was declining because of suffering the bad weather, U Kyaw Thaung, an onion trader from Myingyan, told CNI News.
" Myanmar onion can be sold at the price above 4,000 kyats per viss in a normal situation. If India sell at 4,800, we can also sell at that price. But the transportation charges have been higher. Without the ability to use normal routes, because we have to use other routes, transportation charges have been higher. So, traders can't buy at a higher price. Now Myanmar onions are declining in qualiuty due to bad weather. In fact, the onion with a good quality like Myitthar can be paid at 4,000. Now we can't use Myawady border trade. We have to use other routes. Myanmar onions are being bought by the Philippines, Malaysia and Thailand. Bangladesh also buying Myanmar onions at the FOB price at Yangon Port, I think." he said.
The demand for onion in the domestic market is on the rise and old summer onion prices are between 3,200 and 3,400 kyats per viss at the Myingyan and Pakokku wholesale centers and new rain onion prices are between 2,300 and 2,700 kyats per viss reportedly.
Myanmar onions are being exported to Thailand, Vietnam, Lao, Malaysia and Bangladesh. Moreover, the Philippines is buying Myanmar onion with G to G system.
