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.

CNI News

17 July 2022

The PDF suicide bomber is recognized as a hero but suicide bombing is not encouraged, political analyst U Than Soe Naing told the CNI.

A suicide bombing was carried out by the PDF when Tatmadaw personnel, who stationed at a monaster in Thedaw Village in Yesagyo in Magway Region, tried to shoot and arrest PDF members.

“This is the first suicide bombing carried out by the PDF. I recognize that this is the most violent reaction to the atrocities of the SAC but I do not want to encourage such methods, which amount to kamikaze carried out by Japanese soldiers who sacrificed their lives with highest morale during the Second World War. Such methods could not bring victories in battles, which can only be achieved by the struggle of the entire people,” he told the CNI.

A PDF member from Yesagyo told the Khit Thit Media that at least ten soldiers from the Tatmadaw were killed during the bombing.

 A protest in the Spring Revolution.

U Than Soe Naing said, “I honour him but I don’t want the people to pay a price for adventurism because we cannot win victories in our revolution through such methods. As I believe that it is necessary for the entire people to join the revolution in order to achieve victories, I express my own opinion.”

The suicide bombing in Yesagyo is the first of its kind in the Spring Revolution.

The Tatmadaw staged a coup to oust the NLD government by declaring a state of emergency when the NLD tried to form a government without settling voters’ lists disputes in the 2020 general election.

After the coup, anti-military pro-democracy armed struggles have broken out and armed conflicts have spread to Magway and Sagaing Regions and Chin,  Kayin and Kayah States.

CNI News

17 July 2022

The transportation of medicines, fertilizers, wires and ironwork has been prohibited by checkpoints around Pakokku, according to truck drivers in the town.

Although local authorities have not issued the prohibition order officially, checkpoints at the entrance and exit of the towns and along the highways have told truck drivers not to carry the goods.

Moreover, the transportation of rice has also been restricted, truck driver Ko Myint Zaw, who transported onions from Pauk Township to Pakokku, told the CNI.

“Transporting more than five bags of rice is not allowed. It is said that oral and injectable medicines, batteries, wires, solar panels and generators are prohibited,” he told the CNI.

However, medicines are allowed to be transported together with doctors, he explained.

Goods are being inspected at a checkpoint at the entrance to Pakokku.

As restricted goods were not announced officially, truck drivers faced difficulty and refused to transport some goods.

Some truck drivers who carried restricted goods were sometimes punished by authorities at checkpoints, according to truck driver U Nay Lin.

U Nay Lin told the CNI, “Most truck drivers are afraid of authorities at checkpoints and have stopped transporting goods. If they have to transport goods, they dare not carry restricted goods because it is dangerous for them. Some truck drivers who carried prohibited goods were punished by authorities  by forcing them to put their hands on their heads and to stay under the sum for a long time.”

When prohibited goods are found to be transporting, authorities at checkpoints seize the goods, refuse to give permissions to pass through the checkpoints or impose fines, according to truck drivers.

Transportation of such goods is prohibited in townships around Pakokku including Pauk, Monywa, Yaw, Pale, Seikphyu and Salin.

CNI News

16 July 2022

Measures taken by the Ministry of Commerce to issue licence and permit to export only after remittance has been received through the advance payment system aims to strengthen the market, Secretary U Thant Zin Tun of Myanmar Corn Industrial Association told the CNI.

Previously, pulses and beans, corn, sesame, peanuts and oil crops were allowed to export with the agreement between the buyers and sellers but exporters are now allowed to export oil crops only after US$ remittance has been received.

U Tant Zin Tun said “ The government might want to raise the prices of exports and enable exporters to sell their goods at a fixed price in a dignified manner instead of going to the border and selling goods.

The Ministry of Commerce issued an order on 2nd July that oil crops can be exported through the desired payment system but it is necessary to set the prices in US$.

Oil crops.

According to the order, exporters are required to deposit their export earnings in US$ at the Central Bank of Myanmar, which, after deducting 2 percent tax, reimburse the earnings in Kyat at the exchange rate of K 1850 per dollar.

In the order issued on 14th July, in exporting pulses and beans, corn and oil crops through border trade, the advance payment system is introduced and export licenses will be issued only after receiving remittances for the crops.

As the system is applied only to maritime trade previously, there may be some difficulties in border trade, said In-Charge U Nay Win Soe of Ayeyar Trade Centre.

“Countries importing goods from Myanmar are not trading only with our country. Thailand can import goods from Vietnam and Laos. India can import goods from Pakistan and other countries. The main demand comes from China.  China needs goods from Myanmar but they have taken an upper hand. So, payment system used in maritime trade is introduced in border trade, there will be some difficulties,” U Nay Win Soe told the CNI.

Exports from a port.

Repeated changes of policies in the export sector cause delay in trade and create instabilities in the market, according to exporters.

Moreover, many exporters have suffered losses due to policy changes and price instabilities and have to buy corn from farmers at lower prices for the upcoming cultivation season, corn farmer Ko Min Khaing from Ayeyarwady Region told the CNI.

“Corn exporters have suffered losses this year. So, they have learnt a lesson and buy corn from farmers at lower prices than the previous year. They will buy corn from farmers at lower prices, I think,” he said.

However, some exporters at border trade said that it is still necessary to closely watch the new policy on exports of pulses and beans, corn and oil crops as there are some difficulties at first, but the policy may work in the long term.