Myanmar Resumes Transit Trade from June, Only for Export not to Domestic Market

By CnAgri2018-07-11 15:16:24 Print Myanmar media reports that the Government allowed resumption of white sugar transit trade from June 1st, ever since workers have more job opportunities. If the transit trade is up to 1 million tons, workers can earn 4 billion Myanmar dollars per year.
 
Myanmar trade bureau announced the transit trade is not for domestic consumption, companies not abiding by this rule shall be punished according to the law. Myanmar only made it clear the white sugar import is not for its domestic consumption, all import is for export, but there is no mentioning of export destination at all.
 
Sugar import for the transit trade is 480 USD/ton, whereas the export price is around 600 USD/ton. Based on the current RMB exchange rate, the cost of importing one ton of white sugar to Myanmar is about 3180 yuan, and export 3975 yuan, the price gap with that 5500 yuan/ton in China is over 1500 yuan/ton. As a neighbor and smuggling history, China is highly likely the destination of the transit trade.