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November 13, 2019

Sugar re-export companies asked to report actual trade volume within two months

Local farmers harvest sugarcane in this summer in Thanbo Village-trace in Meikhtila District. Photo: Chan Thar (Meiktila)

The Trade Department has asked 141 companies which re-export sugar to provide the actual trade volume figures within two months, according to a recent announcement released by the department on 24 May.
Companies which fail to furnish the figures will face legal action, according to the Commerce Ministry.
Re-exported sugar is not intended for the domestic market as it can hurt domestic sugar producers. The import list needs to tally with the volume of re-export, and authorized companies need to strictly adhere to the prescribed rules and regulations. Inspections will be conducted to check whether they comply with the rules or not. Companies found selling sugar meant for re-export in the domestic market will face legal action.
The Commerce Ministry allowed Myanmar merchants to re-export sugar in the 2015-2016 fiscal year to help them earn hard currency, improve trade, and create job opportunities.
Myanmar merchants import sugar mostly from Thailand and India, along with Brazil, Qatar, and the UAE. It is then re-exported to China through the Sino-Myanmar checkpoints, as Myanmar sugar millers are unable to produce quality sugar that meets the export criteria due to lack of advanced refining machinery.
More than 700,000 tons of sugar, valued at $394 million, was exported in the 2015-2016FY. During the 2016-2017FY, 2 million tons of sugar, worth $1.12 billion, was exported. Starting from 22 September, 2017, sugar re-export was suspended.
In August last year, the Ministry of Commerce declared a temporary ban on sugar re-export to regulate the forex market as it could weaken the Kyat value. China has suspended the importation of some agro products, including sugar and rice, through the border since the second week of October, 2018. —Ko Khant
(Translated by Ei Myat Mon)


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