CNI News

21 July 2022

As rice exports came to a halt recently, supply of the crop to Bayint Naung Commodity Exchange was low, according to the commodity exchange.

Currently, rice exports have halted completely and demand for rice is very low. Recently, rice was traded for domestic consumption, Tatmadaw rations and other organizations, Secretary U Than Oo of Bayint Naung Commodity Exchange told the CNI.

“As exporters have stopped buying rice, traders have to purchase rice at lower prices. So, it is not profitable for merchants in small towns who store rice for the market and as they cannot sell their rice at lower prices. Another factor is paddy has not been harvested at this time of the year in most areas except Mandalay and Madaya. Recently, we could sell rice for domestic consumption, rations for the Tatmadaw and the WFP. Exporters have stopped purchasing rice,” he said.

As the Central Bank of Myanmar has set the exchange rate at K 1,850 per US dollar, exporters suffered losses and stopped rice exports.

The processing of paddy.

Therefore, rice supply to Bayint Naung Commodity Exchange decreased to one-third of its usual volumes, according to U Than Oo.

“About 70,000 to 80,000 bags of rice were usually transported to Bayint Naung Commodity Exchange every day but the supply volumes dropped to 20,000 to 25,000 bags a day or about only one-third of usual volumes. Millers, wealthy farmers and dealers have not sold their rice to get more profits when the prices rise again. There is no rice in the hands of small farmers. As the harvest has started in Madaya, farmers there may have paddy in their hands. In other places, rice is held by people who are waiting for higher prices,” he told the CNI.

Maritime exports of rice have halted due to the gap between the official exchange rate and the market rates, but traders are still exporting rice at the border trade.

Rice exports through the border trade are still surviving as rice was traded not in US dollar but in Yuan there, Vice Chairman U Min Thein of Muse Rice Commodity Exchange told the CNI.

“We mainly exported broken rice to China and only a little rice. As the rice and broken rice trading is carried out not in US dollar but in Yuan, the border trade of rice and broken rice is carried out in Yuan, it was not seriously affected by the exchange rate set by the CBM. However, those who exported rice through the maritime trade suffered losses due to the gap between the official exchange rate of 1,850 per US dollar and market rates. We have not suffered the consequences as we exported rice in Yuan but those who exported rice through the maritime trade suffered losses because they traded in US dollars. So, they have stopped buying rice for exports. So, merchants from small towns cannot sell rice at lower prices and the demand is very low,” he said.

Rice exported to other countries was 25 marks rice and the price was as high as K 30,000 per bag but exporters could not offer more than K 28,000 per bag to export rice to other countries.

However, millers and farmers cannot sell rice to them at the lower prices and only a few of them who were short of cash sold rice to exporters at a loss, according to the commodity exchange.

 CNI News 

20 July 2022

 A statement claiming to have formed the Kaw Thoo Lei Army by Maj-Gen Saw Nerdah Mya, who was dismissed from the post of the chief of staff of the Karen National Defence Organization (KNDO), on 17th July 2022 was circulated on social media.

 The statement was also signed by Saw Win Myint, a commander of the Venom Commando column.

 The statement said that the KNDO led by current chief of staff Maj-Gen Saw Shee Lei is one of the signatories of the Nationwide Ceasefire Agreement and in a difficult position to lead movements of the entire people.

 Therefore, the Kaw Thoo Lei Army was formed under the leadership of Maj-Gen Saw Nerdah Mya on 17th July 2022, the statement said. 

The statement added that the Kaw Thoo Lei Army stands as a people's army of Karen ethnic group and will eliminate the State Administration Council until the victory of the revolution has been achieved without following the orders of the organization  under the SAC. 

Maj-Gen Saw Nerdah Mya and Captain Salone.

In the statement, Venom Commando column announced that it joined the Kaw Thoo Lei Army as of 17th July and requested the public to support the Kaw Thoo Lei Army instead of NCA signatories with the SAC.

 Venom Commando commander Saw Win Myint reiterated the pledge to defeat the SAC relentlessly without wasting any cent donated by the people.

 The KNDO is the armed wing of the Karen National Union, which signed the NCA on behalf of its armed wings, the KNDO and the Karen National Liberation Army (KNLA). 

The current chief of staff of the KNDO is Maj-Gen Saw Shee Lei and Maj-Gen Saw Nerdah Mya was dismissed from the post on 8th July for his role in the killing of 25 construction workers on 31 May 2021.

 Maj-Gen Saw Nerdah Mya rejected his dismissal. 

Maj-Gen Saw Nerdah Mya and Captain Salone.

The CNI tried to reach Maj-Gen Saw Nerdah Mya for comments on the formation of the Kaw Thoo Lei Army but  he did not answer the phone.

 It was rumoured in the Karen political circle that a new Karen armed organization was likely to be formed and it was said that popularity of the group among the public and on social media was a push for formation of the new group. 

As Maj-Gen Saw Nerdah Mya joined the Spring Revolution and launched offensives against the SAC troops, he was popular among the public and on social media.

 Currently, there are many Karen armed organizations including the KNU, the DKBA and the KNU/KNLA-PC.

 All the groups are factions of the KNU and Col Saw Chit Thu of DKBA also formed another faction callled Border Guard Force and cooperated with the SAC. 

In a similar fashion, about 300 members of the DKBA led by Captain Salone defected in May 2022 and joined with the troops of Maj-Gen Saw Nerdah Mya, who was dismissed by the KNU.

CNI News

20 July 2022

U Cho Aung Than, a nephew of late martyrs Gen. Aung San and U Ba Win, refused to attend the Martyrs’ Day ceremony because he did not recognize the SAC, he told the CNI.

U Cho Aung Than is a son of U Aung Than, an elder brother of Gen. Aung San.

Families of Gen. Aung San and U Ba Win did not attend the 75th Anniversary Martyrs’ Day ceremony organized on 19th July, 2022.

U Cho Aung Than told the CNI, “As I said yesterday, we do not recognize the government. In previous years, a son of U Ba Win and I, as the eldest nephew of Gen. Aung San, attended the ceremonies.”

The organizing committee for the event attended the ceremony and laid wreaths on behalf of the absent families.

Daw Aung San Suu Kyi, the daughter of Gen. Aung San, has been detained by the Tatmadaw after she tried to form a new government without settling voters’ list disputes in the 2020 general election on 1st February 2021 and a state of emergency was declared.

Senior General Min Aung Hlaing attends the 73rd Anniversary of the Martyrs’ Day Ceremony. 

The Tatmadaw formed the SAC to run the country and promised to hand over power to the winning party in the 2023 elections.

U Cho Aung Than said that the SAC was not a legitimate government and no one had voted for them.

“I do not recognize the government. Actually, it is not a legitimate government. I have never voted for them. Last year, authorities came to my house to check whether there were guests at my house. When they saw the flag of the National League of Democracy, they seized it. I will always remember the incident, especially on a day like this,” he told the CNI.

Vice Chairman of the SAC Vice Senior General Soe Win attended the ceremony and laid a wreath at the mausoleum.

Gen. Aung San and colleagues were assassinated at a meeting in the Secretariat in Yangon on 19^th July, 1947.

The day was designated as the Martyrs’ Day and it has been 75 years since the Martyrs’ Day ceremonies were held every year.

CNI News

20 July 2022

Falling fuel prices failed to benefit the agriculture sector, farmers told the CNI.

Farmer U Aung Kyaw Mya, who was currently growing monsoon paddy, told the CNI that  falling fuel prices failed to benefit farmers because of the gaps between company price and market prices.

“We still have to buy fuel at K 2,500 per litre. So, farmers in Rakhine State cannot enjoy the benefits of falling fuel prices. If we can go and buy fuel at companies, we get fuel at cheaper prices. As we have to buy fuel in the market, we cannot get fuel at cheaper prices. Companies cannot sell as much fuel as we need. They can sell only K 20,000 worth of fuel to a car. As we cannot buy as much fuel as we need from companies and we have difficulties,” he said.

Although the drop in fuel prices have no impact on agriculture, transportation costs have fallen, farmer U Ko Ko Lay told the CNI.

Previously, farmers had to pay K 70 per viss for transportation of their goods to towns but now transportation charges have dropped to K 50 per viss.

“Farmers have to transport their crops by using cars. When diesel prices dropped a little, they can save some money for plastic and paper bags used to wrap guavas. We had to buy fuel and fertilizers at higher prices. Now, crops are being harvested and fuel prices dropped when we no longer needed to use them as much as before. So, we cannot enjoy the benefits of falling fuel prices considerably,” he explained.

During the rainy season, some farmers have to halt their agricultural activities and do not need to use as much fuel as before.

However, U Khin Soe, a retired state officer from Mon State Salt Industry Department said that it would be of benefit for farmers if fuel prices continued to fall until summer.

“Farmers, whether they work on agricultural farms or in salt farms, need fuel. Salt farmers have to spend about 20 percent of their production costs on fuel. When fuel prices were higher, they had to spend about 30 to 35 percent of production costs on fuel. The lower the production costs, the higher the profits,” he said.

On 19th July, diesel was sold at K 2,155 per litre while premium diesel was available at K 2,210 per litre. Octane 92 and Octane 95 are distributed at K 1,770 and K 1,830 per litre respectively. Fuel prices have dropped recently.

CNI News

20 July 2022

The instruction of the Central Bank of Myanmar to companies and organizations that received foreign loans to suspend repayments can lose confidence in Myanmar in the international community and affect economic development, according to political and economic analysts.

Foreign investors may see Myanmar as a notoriously unreliable country, political analyst U Ye Tun (Hsipaw) told the CNI.

“As the instruction was issued for private companies, I don’t know how this can affect their businesses but as a country, Myanmar will be regarded as a financially notorious and unreliable country by foreign companies, governments and investors,” he said.

Foreign currencies.

The new monetary policy adopted by the CBM will undermine Myanmar’s ability to receive low interest loans from international banks, according to businessmen.

This will also affect the companies that import goods on loans and lead to shortages of commodities, an economic observer told the CNI.

“The order has an enormous impact that will have various consequences. Companies can get new loans or place new orders for goods after they have repaid loans in time. Such companies may face shortages of goods,” he said.

Business community in Myanmar believed that the new policy to suspend repayments of foreign loans aims to tighten the control over the flow of foreign currencies especially US dollar.

However, an economic analyst said that it was not clear what the aim of the CBM was and it was likely that the CBM will ease the control again.

People walking in Yangon.

“We don’t know the aim of the policy of the CBM. It is not clear whether they want to control the outflow of US dollar or they just want to study the amount of the outflow. It depends on their aim. In the past, they cut off the outflow of US dollar and then measures were taken to ease the control gradually. I think they will ease the control for companies and organizations that really need to repay loans,” he told the CNI.

After the CBM issued the new foreign loan policy, the Kyat currency fell against US dollar from K 2,200 to K 2,300 per US$, causing gold and car prices to jump up.

The order issued by the CBM on 13 July instructed banks that have authorized dealer licenses to make necessary negotiations for their customers’ repayment schedules of loans and interest with lenders.

CNI News

19 July 2022

Those who claimed that the Tatmadaw was deteriorating are people who want to revive the armed struggle, said Director U Thein Tun Oo of the Institute for Strategic Studies.

Prime Minister Mahn Win Khaing Than of the National Unity Government on 17th July said that the Spring Revolution was a significant one in the history of Myanmar and it was time to topple the Tatmadaw as it had been deteriorating.

U Thein Tun Oo told the CNI, “ The problem is that the NUG is almost always making such kind of rhetoric repeatedly. We don’t know what facts they have taken into consideration. What is worse is that we are still wondering whether they are taking the situation on the ground into account. So, frankly speaking, they are saying that without considering the situation on the ground. We need to consider sound research data. Otherwise, such rhetoric is just propaganda and reflects the desire to revive the armed struggle in which they encounter problems and just for instigation.”

Mahn Win Khaing Than said that the people have contributed funds and strength without losing momentum to the Spring Revolution, which is the significant convergence of diverse ethnic, religious and regional groups in the history of Myanmar.

 NUG Acting President Duwa Lashi La and PDF members.

Political analyst U Than Soe Naing told the CNI that the NUG was likely to announce this because they said they had controlled 48 percent of the country and had formed more than 200 battalions.

U Than Soe Naing said, “The NUG announced that they had controlled 48 percent of the country. Furthermore, the Ministry of Defence of the NUG had formed more than 200 battalions and there were more than 500 PDF forces working independently, according to them.”

Fighting has intensified in urban areas as well as in states and regions recently after the acting president of the NUG called for more offensives against the SAC troops.

After the Tatmadaw staged a coup on 1st February 2021, protests against the army  as well as armed resistance broke out in Sagaing and Magway Regions and in Kayin, Kayah ( Kareni) and Chin States.

Almost one million people have been displaced by the armed conflicts, according to the UN.

CNI News

18 July 2022

Myanmar workers who went to Thailand under the MOU between the two governments sometimes were not employed in jobs in their contracts, Ko Thar Gyi, a labour activist for Myanmar workers in Thailand, told the CNI.

The workers signed employment contracts which guaranteed certains jobs in factories before they went to work in Thailand but they said they were employed in construction sites when they arrived in Thailand.

Ko Thar Gyi said, “When employment contracts were signed, it was stated that they would be employed in certain factories but when they arrived in Thailand, they had to work in construction sties. Some of them were sent to construction sites but they were not allowed to work there. The problem was they were not employed in accord with their contracts. Under the terms and conditions of the MOU, agencies sent the workers from Myanmar to Thailand but this was just an offical purpose to send workers to Thailand. Costs for hiring workers for a factory for a construction site vary enormously. Why can’t agencies employ workers at the workplaces stated in the contracts? According to complaints we have received, workers were hired for jobs stated in the employment contracts, but they are forced to work in other worksites,” he said.

Overseas employment agencies are responsible for the problem while those who complained of the problem only knew the name of the persons who sent them to Thailand and when they were contacted to the phone numbers they had given to workers, they did not answer the phone calls. The workers did not know the names of agencies which sent them to Thailand.

Currently, the workers who do not have appropriate accommodations and have faced difficulties for food, want to return to Myanmar. Ko Thar Gyi said that the problem must be blamed on the Ministry of Labour of Myanmar.

“Employment agents in small towns tried to lure the workers by saying that they would be provided with accommodations. They showed the workers photographs of some hostels in Thailand and said that they did not need to pay utility bills and would also be provided with food in a certain factory. The workers no longer want to stay in Thailand if they are not employed in the jobs stated in the employment permits. They want to return home and sue agencies which sent them to retrieve their costs with the help of the Anti-Human-Trafficking Police,” he said.

Action should be taken properly against such oversea employment agencies by the Myanmar Embassy in Thailand and diplomatic staff, Executive Director U Htoo Chit of Foundation for Education and Development told the CNI.

“Most labour attaché here have to depend on overseas employment agencies and work with their assistance. So, they cannot take effective action against the agencies. This is the lack of accountability that tarnish the image of the government. So, it is necessary for them to offer assistance to the workers immediately and this will amount to protection of workers,” he said.

There are millions of Myanmar workers in Thailand and the MOU, which was suspended due to COVID-19, was revived on 10th May 2022 and currently, more than 10,000 Myanmar workers have been sent to Thailand.

CNI News

18 July 2022

Although rice exports to China dropped , broken rice increased in border trade recently, according to rice merchants in Muse.

In the past, Myanmar exported much more rice than broken rice to China but rice exports dropped to 10 percent of previous volumes while broken rice stored in warehouses in Muse was sold to China, Vice Chairman U Min Thein of Muse Rice Commodity Exchange told the CNI.

“Merchants exported broken rice instead of rice to China. In the past, Larger volumes of rice were sold to China but broken rice exports were much more  than rice recently . Only one truck out of ten transported rice  to China and the rests were broken rice trucks. Broken rice from the mainland as well as from warehouses in Muse was transported through Kyin San Kyawt gate.

Broken rice is used as a substitute for rice in distilleries and production of noodles and vermicelli in China.

Merchants in China import more broken rice than rice because taxes for rice are higher than that for broken rice, according to U Min Thein.

“Taxes for broken rice are lower in China while that for rice is higher. So, it is more profitable for them to import broken rice. They have to pay 20 Yuan more taxes for a bag of rice,” he told the CNI.

As it is not so profitable for Myanmar merchants to export rice due to the gap between the official exchange rate of the Central Bank of Myanmar and market exchange rate, the volume of rice exports to China dropped.

Exports of rice from Bayint Naung Commodity Exchange to China also decreased, Secretary U Than Oo of Bayint Naung Commodity told the CNI.

“Exporters completely stopped buying rice and only a small volume of rice was exported to China through Kyin San Kyawt gate. Muse-105 mile gate has been closed,” he said.

About 10 to 15 truckloads of rice and broken rice are exported to China through Kyin San Kyawt gate daily.

As merchants exported more broken rice than rice recently, a small volume of rice entered Bayint Naung Commodity Exchange recently.

CNI News

17 July 2022

People were confused about the announcement of China to halt permission to take out goods that were stuck in China and rumours spread that China-Myanmar border trade would be closed on 15 July but China-Myanmar border trade is being conducted as usual, Vice Chairman U Min Thein of Muse Rice Commodity Exchange told the CNI.

“It has been about two years since about 600 truckloads of goods were stuck in warehouses in Jiegao. The goods were allowed to be taken back from Jiegao to Ruili, from Ruili to Wantain and Kyin San Kyawt gate. Goods stuck in Chin Shwe Haw were also allowed to be taken back. Chinese authorities allowed this for two months and announced on 14th July that they would halt the permission temporarily as of 15th July. The Kyin San Kyawt border gate is open for entry as well as for departure,” he said.

Goods stuck in Jiegao and Wantain were allowed to be brought back as of 23rd May and the permission has been suspended now.

About 100 truckloads of goods are traded at Kyin San Kyawt gate daily and Jiegao gate is closed, truck driver Ko Thant Zin from Muse said.

“Border trade is open. About 100 truckloads of goods are traded daily recently. Chinese authorities just closed the road from Jiegao to Wantain,” he told the CNI.

As a measure to prevent the spread of COVID-19, Chinese authorities have closed border gates in Chin Shwe Haw, Jiegao, Muse and Mant Wain but Kyin San Kyawt gate is still open for border trade.