Myanmar loses watermelon market share in China to Laos due to unfair competition

As Laos can enjoy some trade preferences, unlike Myanmar’s watermelon export to China, it might grasp more market share, Sai Min Thu Naing, director of Khwanyo Fruit Depot, criticized.
During his visit to the Mohan fruit yard on the border of China and Laos, he realized a different purchase policy and treatment for growers of Laos, he added.
Laos now has direct access to the Chinese market through its trucks. Therefore, Laos can enjoy direct trade, direct payment and zero tariffs as tax and other charges are imposed only on Chinese traders for transactions.
Mohan border town is being developed as a special economic zone. The Laos-China six-lane highway facilitates border trade, allowing Laos growers to sell fresh fruits.
Meanwhile, Myanmar’s growers are struggling to export them without having equal treatment. This way, they might lose market share in the long term, he pointed out.
Extreme weather and transport disruption at borders are contributing factors to the physical damage of the fruits at present.
Subsequently, Myanmar exporters are suggested to contemplate the market conditions depending on the supply and demand factors amid the export risks and transport disruption.
Myanmar delivers watermelon and muskmelons to China through Lweje and Mongla road channels under some circumstances.
Myanmar’s watermelon is primarily exported to China. However, fruit traders emphasized that traders are facing prolonged challenges amid the policy changes in China.
Tight inspections of Chinese Customs hindered truck transport in early February last year. That being so, only 20-30 trucks were given green lights to pass the checkpoint despite high demand.
Consequently, watermelon was sold out at the depots on the Chinese side, and more than 500 trucks queued in line on the Myanmar side.
The COVID-19 restrictions hindered Myanmar’s watermelon and muskmelon exports to China in 2021. Chinese Customs policy changes worsened the delay. Long delays of trucks led to the deterioration of fruits, and only one in five trucks heading to China remained undamaged.
The traders need to carefully consider delivery time, price and profitability, as watermelon is a perishable fruit while trying to explore new markets beyond China. — NN/EM