Black bean price on downward trend as demand dries up

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India narrowed down import deadline of beans and pulses, affecting Myanmar market. PHOTO: Phoe Khwar

The price of the black bean is keeping its slump as there is no demand by India, coupled with the drop in prices in India’s market, said a trader from Bayintnaung market.
On 24 November, the black beans were priced K1,004,000 per tonne for fair and average quality and K1,154,000 per tonne for special quality, data of Yangon Region Chamber of Commerce and Industry (Bayintnaung commodity depot) indicated.
The price of black bean dropped after the 2020 Myanmar General Election.
Before the General Election, the black bean was priced K1,072,500 per tonne on 7 November. The price drastically slipped to over K1,004,000 per tonne on 24 November.
Similarly, the pigeon peas market saw a gradual decline to K797,500 per tonne on 24 November, which plunged from K915,000 per tonne on 7 November.
India’s suspension in bean demand causes the price to plummet in domestic markets, said U Min Ko Oo, secretary of Myanmar Pulses, Beans and Sesame Seeds Merchants Association.
The domestic bean market is positively related to the law of supply and demand, he continued.
Myanmar has a stock of below 100,000 tonnes of black bean, and about 30,000 tonnes of pigeon peas are left in warehouses, the association stated.
On 1 October 2020, India issued a notification to purchase 150,000 tonnes of black beans instead, and the import deadline is March 2021. The licence will be equally granted for India’s companies.
Although Myanmar does not have adequate stock, for now, it can reach the quota of 150,000 tonnes, along with the beans which will be harvested next season, U Min Ko Oo maintained.
On 22 May, India rapidly changed the import period of black bean (400,000 tonnes) to three months by August-end 2020 from the earlier set deadline of March 2021, prompting Myanmar’s bean body to call for an extension of the deadline, as per its official notice.
Although the bean body asked to extend the August-end deadline, India still has not responded to the request. Myanmar exported only 100,000 tonnes of black beans then, the association stated.
Since 2017, India has been setting import quota on beans, including black bean and pigeon peas. Therefore, the growers face difficulties to export their beans to India market.
Myanmar has to export black bean and pigeon peas under a quota system and limit period. Consequently, there is no guarantee that we could get the prevailing market price next year, the market observers shared their opinions.
Following the uncertainty in markets of black bean and pigeon peas, the association suggested, in October-end, that the growers cultivate black-eyed bean more. — GNLM (Translated by Ei Myat Mon)

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