Bean Association Acts Swiftly to Avoid Panic

At an August 30 meeting of the Myanmar Pules, Beans and Sesame Seeds Merchants Association (MPBSSMA) and the Union of Myanmar Chamber of Commerce and Indus­try (UMFCCI), a solution was jointly reached to stabilize local bean market: a temporary contribution of state and association funds.

Two weeks ago, India, a primary bean importer, stopped buying pigeon peas and green grams from Myanmar, sending prices into a tailspin and traders into a frenzy.

The UMFCCI said the government will contribute K50 billion and the bean association K50 billion to temporarily relieve farmers of their bean surplus at the market price of K500,000 per ton of green gram and K400,000 per ton of pigeon peas.

Yangon’s Chief Minister, U Phyo Min Thein, criticized Myanmar border traders who engaged in greedy price manipulation, claiming they are guilty of pushing away Indian bean buyers.

To compound worry, the MPBSSMA claims that it will be difficult to resume trade with the Indian counterparts and especially difficult with any sort of fixed contract.

“Establishing a set bean trade through MoU is rare in the global marketplace. Prices of commodities can rarely be fixed as they need to adapt to various market pressures,” U Tun Lwin, Chairman of MPB­SSMA, said.

The meeting’s two at­tending parties also agreed to form a committee for stabilizing the market by managing warehouse space for stockpiles and assessing foreign markets to find a new buyer for all these beans.

The MPBSSMA however, still hopes India’s Prime Minister Narendra Modi, under pressure from the Myanmar Bean Association, might change his mind. The Gujarati leader visits the Golden Land in September.

Source : Myanmar Business Today