Mung Bean Guide

Published 2021년 8월 30일

Market Penetration Strategy

What Are the Challenges in Producing Mung Beans?

Unpredictable rainfall

Most farmers/producers stated that those commodities’ productivity highly depends on the amount and distribution of rainfall. Indeed, the amount of rain required to produce mung beans is lower than the minimum precipitation requirement for other crops. However, rainfall amounts and distribution are irregular and sometimes unfavorable for mung bean production.

Prevalence of pests and diseases

Another critical challenge of mung bean production is related to pests and diseases. Hence, such crop pests and diseases would affect the productivity and quality of mung beans. This problem can be severe when the availability of pesticides is limited.

Lack of input supply and development

The production of crops is highly contingent on improved inputs like seed, fertilizer, etc. However, agricultural research institutes made minimal efforts to enhance commodity varieties, particularly mung beans.

Lack of proper storage and handling

It is essential to focus on improving post-harvest activities such as collecting, storage, and handling to improve mung beans’ quality. This, in turn, helps farmers have substantial bargaining power in the market and better market returns.

Source:

Marketing practices and challenges of Mung Bean in Ethiopia Amhara Regional State: North Shewa Zone in focus

Customs & Tariffs

What Are the Relevant Trade Agreements?

Related Trade Agreements

General Information

-ASEAN Free Trade Area (AFTA)

ASEAN Free Trade Area (AFTA) was established on 1-1-1998 and agreed to eliminate (0%) the tariffs as the commitment time schedule.

-ASEAN-China Free Trade Area (ACFTA)

ASEAN-China Free Trade Area was established on 1-1-2004. Under this agreement, Myanmar will reduce tariff rates in the year of 2010,2015,2018,2020.

-ASEAN-Korea Free Trade Area (AKFTA)

ASEAN-Korea Free Trade Area was established on 24-8-2006. Under this agreement, Myanmar will reduce tariff rates in the year of 2008, 2009, 2012, 2015, 2018.

-ASEAN-Japan Free Trade Area (AJFTA)

ASEAN-Japan Free Trade Area was put into effect on 1-12-2008. Under this agreement, Myanmar will need to reduce tariff rates in the year of 2014, 2017, 2019, 2021, 2023, 2026.

-ASEAN-Australia-New Zealand Free Trade Area (AANZFTA)

ASEAN-Australia-New Zealand Free Trade Area was put into effect on 1-1-2010. Under this agreement, Myanmar will need to reduce tariff rates in the year of 2011, 2013, 2015, 2017, 2019, 2021.

ASEAN-India Tariff Reduction Schedule

*Addition June 4, 2019

-ASEAN Free Trade Area (AFTA)

- zero (2018) Dried leguminous vegetables, shelled, whether or not

skinned or split: Beans of the species Vigna mungo (L.) Hepper or Vigna

radiata (L.) Wilczek:

-ASEAN-China Free Trade Area (ACFTA)

- zero (2018) Dried leguminous vegetables, shelled, whether or not skinned or split: other

- zero (2018) Leguminous vegetables, shelled or unshelled, fresh or chilled: other

-ASEAN-Korea Free Trade Area (AKFTA)

- zero (2019) Dried leguminous vegetables, shelled, whether or not

skinned or split: - Beans of the species Vigna mungo (L.) Hepper or Vigna

radiata (L.) Wilczek:

-zero (2019) Vegetables (uncooked or cooked by steaming or boiling in water), frozen: other

-ASEAN-Japan Free Trade Area (AJFTA)

-15 % (2019) 0 Cucumbers and gherkins, fresh or chilled: Other

-ASEAN-Australia-New Zealand Free Trade Area (AANZFTA)

- 15% (2018) Leguminous vegetables, shelled or unshelled, fresh or

chilled: Beans (Vigna spp., Phaseolus spp.)

- 0% (2018) Dried leguminous vegetables, shelled, whether or not

skinned or split: Beans of the species Vigna mungo (L.) Hepper or Vigna

radiata (L.) Wilczek:

-ASEAN-India Tariff Reduction Schedule

- zero (2018) Leguminous vegetables, shelled or unshelled, fresh or chilled: Beans (Vigna spp., Phaseolus spp. )

-zero (2018) Dried leguminous vegetables, shelled, whether or not skinned or split: Beans of the species Vigna mungo (L.) Hepper or Vigna radiata (L.) Wilczek

Production Supply Chain

What Are the Marketing Challenges of Mung Beans?

Low level of local consumption

The level of consumption for a particular commodity is one of the determining factors for its production. However, the level of consumption is driven by other aspects like the commodity’s value and the knowledge of such value by consumers and others.

Inappropriate market chain

A successful and sustainable pulse presupposes that value chain actors are well-integrated and function as a unified system in a way that maximizes the welfare of all actors involved from production up to consumption.

Lack of market information

Farmers and traders had been unable to access regular market information. This had been considered to be a major problem in developing marketing plans and in price discovery. This lack of information has been increasing both transaction costs and resistance to risk-taking.

Price impulsiveness

Shifts in prices and demand for commodities had led to increased risk and volatility in both prices and volumes of traded commodities.

Lack of stakeholder’s commitment

Lack of enough support from officials to formalize the trading activities reduces uncertainty in the market for the farmer and trading community’s advantage.

Source:

Marketing practices and challenges of Mung Bean in Ethiopia Amhara Regional State: North Shewa Zone in focus

How Does the Supply Chain Work?

The supply chain starts from Farms and then goes through Local warehouses, Processors, Traders, and Exporters.

There are 3-4 intermediaries in the value chain. Agents/brokers play a huge role between local farmers and exporters in setting the price and negotiation.

Is There Any Supply Network?

Only a few implement contract farming between mung bean farmers and exporters. Such a contract basis system is still in its early stage of development.

Trade Overview

Which countries export mung beans the most?

In 2020, Myanmar was the top mung bean exporter globally, with an export value of USD 1,019,331K (39.8%). This was followed by China (7.1%) with an export value of USD 181,179K, and Uzbekistan (8.4%) with USD 87,934K.

Which Countries Are the Main Importers?

Top Export Flows of Dried Mung Bean

Source: Tridge

In 2022, 40.96% of mung bean Myanmar exports went to India, 28.61% to China, while Singapore, Indonesia, and Pakistan exceeded 18.10% of the export share. The EU market offers a better price but has low consumption rates. On the other hand, China offers a lower price but purchases in significant volumes. China does not have customs clearance for mung beans to check the quality, and they do not have a third-party inspection at the port, unlike vegetables, for example.

Source: Tridge

Seasonality of Main Producing Regions

What are some common varieties of mung bean in the market?

[United States]

According to Iowa State University, the varieties of mung bean include Berken and Texsprout. Berken is the major certified variety grown, is green colored, and is what most buyers prefer to purchase.

[Asia]

India is the largest figure, with 50% of world production. Improved varieties are now grown on almost 3 million hectares in Bangladesh, Bhutan, China, India, Myanmar, Nepal, Pakistan, Sri Lanka, and Thailand (Integrated Breeding Platform, 2019).

[Australia]

There are five varieties in Australia (Australian Mungbean Association)

1. Jade-AU (large-seeded, shiny green mungbean)

It is broadly adapted to the northern region. It is suitable for both ‘spring planting’ (September/early October) and ‘conventional summer planting’ (December/January).

2. Crystal (large-seeded, shiny green mungbean)

A cross between White Gold, Emerald, and other breeding lines. It is a relatively tall, erect variety with similar lodging resistance to Emerald.
Crystal has low levels of hard seed, increasing its attractiveness to the cooking and processing markets.
Crystal can grow in all regions and is suitable for spring planting (September/early October) and summer planting (December/January).

3. Celera II-AU (small-seeded, shiny green mungbean)

Offers greater yield stability under high disease pressure.
Grown for niche markets in many European and Asian countries, and some splitters and millers also prefer.

4. Satin II (dull green mungbean)

Has superior seed quality with increased seed size and improved evenness of seed color, size, and shape.

5. Regur (black gram)

Regur is a dark grey seed that is more tolerant to waterlogging than the mungbean varieties.
Japanese market demands this type.

What are the grade classifications of mung beans?

Here are the machine dressed mung bean standards according to the Australian Mungbean Association:

Source:

Machine Dressed Mungbean Standards

When Is the Harvest Season?

Mung Bean is grown during two seasons in Myanmar. One is winter season (starting October), and the other is the raining season (starting August). Winter crop is harvested in February to April and Monsoon crop is harvested in August to January.

Local Logistics

How Is the Logistics Process Structured?

The main port is Yangon. It could be done through truck or sea, (in the case of trucking, this would be cross-border trade, i.e. Myanmar with China. However not all parts of China are shipped through trucks - depends on the port of destination).

Regulations in Exporting Country

What Is the Export Process like in Myanmar?

Exports from Myanmar are controlled by the Customs Department of the Ministry of Planning and Finance (“Customs”). Customs is responsible for assessing and collecting applicable taxes on exports and carrying out other regulatory and law enforcement responsibilities relating to exports.

In order to clear Customs, exports must be accompanied by a customs declaration and required accompanying documents. All exports must be cleared through Customs’ MACCS system.

Required accompanying documents include:

An export license / export permit

If Non-license

Company registration certificate including Form VI, XXVI

Exporter registration certificate (Pa-Tha-Kha)

Invoice

Packing list

Sales contract

Shipping instruction

Booking note

Others required documents such as Consumer goods FDA recommendation (Food and Drug Administration), Plants, Flowers, Seeds Phytosanitary Certificate from the Plant Quarantine Division under the Department of Agriculture, Dangerous Cargo Storage Recommendation from the Ministry of Home Affairs

Generally, the customs declaration and supporting documents must be submitted to Customs prior to the export of the goods.

Buyer/Seller Relation

Upon the deposit, exporters order from local farmers/wholesalers. They were then delivered to the Yangon Industrial Zone.

Mung beans are processed according to the buyer’s requirement (mung beans are exported as raw, gravity cleaned, sorted, or double sorted).

Exporters then arrange logistics/cargo for shipment. Once the full payment is received, exporters load the goods.

Required Documents

What are some related trade regulations for mung beans in the global market in 2020?

[Myanmar]

Myanmar mung bean price increases as India increases the import quota:

The Indian government has recently allowed 150,000 MT of beans & pulses from Myanmar as its domestic crop is damaged. In October, the local wholesale price of raw mung bean and raw black gram bean increased from MMK 900,000 up to MMK 1,200,000 per MT immediately upon the news from the Indian government. Thus growers and exporters will direct the export stock to the Indian market in the coming season.

Source:

Myanmar mung bean price increases as India increases the import quota

[Tanzania]

VAT from agricultural products removed in Tanzania:

The Ministry of Finance of Tanzania has waived off 18% value-added tax (VAT) on raw agricultural export. This decision will make Tanzania’s agricultural commodities more competitive in the global market. The removal of the tax was announced during the reading of the 2020/2021 budget speech.

Source:

VAT from agricultural products removed in Tanzania

[India]

Indian government implements new regulations to increase competition and exports:

The government of India brought out new regulations aimed at reforming the Indian agricultural value chain.

Pulses, lentils, cereals, and onion have been removed from the Essential Commodity list, along with the regulation that farmers can now directly trade and enter into business contracts with exporters, traders, and processors/millers, removing the mandatory requirement of trading through wholesale Mandis (markets).

With these new regulations, the government expects to increase competition and exports, attract private investments, and improve crop quality.

Source:

Indian government implements new regulations to increase competition and exports

What Kind of Regulations Are Applied to Burmese Mung Beans?

India has comparatively more regulations than the other main importing countries (Vietnam, Japan, the United States, and China) of mung beans. According to the rules, each consignment sent to India must be fumigated with methyl bromide at “32 gram/m^3 for 24 hours at 21 degrees Celsius or above at NAP” or other specific, noted dosages. Exporters must provide evidence attesting to the treatment as well.

To export mung beans to Europe, traders must deal with strict rules and obligations on food safety. The General Food Law regulates food safety in the European Union and applies to mung beans. Suppliers must ensure that exports are traceable and that safety systems (such as HACCP) are in place.

As food safety is a top priority for buyers, extra guarantees could be expected in the form of certifications and compliance with food management systems, such as Global G.A.P. for agricultural production, ISO 22000, and BRC or IFS for the processing and handling of mung beans.

Quality Control/Certification

How Is the Quality Checked?

The most significant quality issues are regarding moisture level -> 8-9% ideal, 10% is max, and 13% is hazardous for the crop(Shelf life is one year). The beans' moisture level is checked at every stage of the value chain.

There are a few logistical issues (e.g., shipping containers) as the beans are dried. The dried condition allows a long shelf-life for the product, lowering the risks of shipping and storage issues.

What Are the Major Diseases and Pests of Mung Beans?

Mung bean yellow mosaic virus (MYMV) is a primary viral disease that causes immense damage to both mung beans in Asia. This disease is transmitted by the whitefly (Bemisiatabaci Gen). It results in the puckering of leaves and reducing the size (Sahni, Prasad, and Kumari, 2016). Moth bean is also highly susceptible to MYMV (Panwar and Srivastava, 2012). Various bean varieties that are resistant to MYMV have been developed.
Powdery mildew is a fungal disease common in areas with rice-based cropping systems. This occurs in the winter/dry season and is thus more prone to be found in countries where mung bean production occurs in winter. It mainly affects the winter crop grown in the peninsular region of India.
Cercospora leaf spot is a more severe disease in mung beans. It causes leaf-spotting and defoliation.
Although varieties with resistance to MYMV and powdery mildew have been developed, pests like Helicoverpa, whiteflies, bean aphid, leafhopper, green and brown mirids, bean pods borer, and thrips continue to cause substantial damage.

Source:

Marketing practices and challenges of Mung Bean in Ethiopia Amhara Regional State: North Shewa Zone in focus

What factors can affect the quality of mung beans?

According to the Department: Agriculture, Forestry, and Fisheries of the Republic of South Africa, 2010, the following are the factors affecting the quality of Mung beans:

Fertilization

Mung beans have phosphorus, potassium, calcium, magnesium, and sulfur requirements, which must be met by fertilizer additions if the soil is deficient in these elements.

Irrigation

Mung beans are sensitive to water-logging, laser-leveled fields with a relatively steep position are preferred.

Weed control

Weed control in mung beans is required that the presence of weed seed in a seed lot will result in the seed being downgraded to a lower quality. Black nightshade, hairy nightshade, yellow nutsedge, and annual summer grasses are the major weeds that can create harvest and quality mung bean problems.

Pest control

To achieve high seed quality, pest control is essential.

General Product Introduction

How is the supply and demand of mung beans in 2020?

[Brazil]

The largest Brazilian exporter of beans and pulses has reported Brazil’s current scenario as of December 2020. For its domestic varieties:

Despite producing 16 varieties of beans and pulses, Brazilian consumers have a preference for three main varieties of beans- carioca with 61%, cowpea 19%, and black haricot 18%:

1. Carioca common bean

The first crop is at the harvest stage right now. However, it will not be enough to replenish regulatory stocks. Surplus for exports will be only available in the second crop from March onwards;

2. Black Haricot common bean

Following the same trend above, this variety deals with the additional impact of a lower yield during this first crop caused by a long drought. If any surplus is available for exports this season, it will no be seen before March; and

3. Cowpea

The main crop is grown in the country’s Northeast region, aiming at the domestic markets.

Source:

Insight on Brazilian beans and pulses

[Indonesia]

Increasing Indonesia green mung bean exports to China and the Philippines:

Recently, several local farmers in Kalianak regency East Java province have successfully exported 25 MT of green mung beans to China and the Philippines with the Ministry of Agriculture’s local representative. This export volume brings the total export volume of mung beans from this region to 325 MT so far in the second quarter of 2020, a 12% increase compared to the same period last year. Since 2018, this province has been the biggest producing region of mung beans in Indonesia. The average annual production at 12K MT, with around 30% of the production output is allocated for export.

Source:

Increasing Indonesia green mung bean exports to China and the Philippines

What Are the Global Market Trends of Mung Beans?

The growing health consciousness primarily drives the global market among the masses. The rising prevalence of lifestyle diseases, including obesity, diabetes, and cardiovascular disorders, has led individuals to adopt a healthy lifestyle with a nutrient-rich diet. This has consequently contributed to the increasing demand for mung beans since regular consumption is widely associated with preventing numerous diseases.

The market is further driven by the growing trend of veganism and vegetarianism on the global level. In line with this, individuals’ shifting preference from animal-based to plant-based proteins creates a positive outlook for the market. These beans are an essential component of numerous dietary supplements and ready-to-eat (RTE) food products. Facilitated by changing lifestyle patterns and inflating per capita income levels, this provides a thrust to market growth. Furthermore, the expansion of e-commerce platforms and the increasing sales of mung beans through online grocery stores have significantly contributed to market growth.

Source:

Global mung beans market to exhibit moderate growth during 2020-2025, fostered by rising trend of vegetarianism

What Are the Factors That Determine the Prices of Mung Beans?

Here are factors that affect the price of mung beans:

Mung beans were affected by export. For example, Myanmar's mung bean price depends highly on India's imports.
Financial crisis: Farmers are forced to sell the products immediately after harvest when the price is lower due to a glut in the market.
Lack of information: Farmers do not follow other markets.
Storage: Some farmers do not have good storage, and the products deteriorate over time, the price goes down. But other farmers collaborating with regional traders using adequate storage can sell at a reasonable price.
Transportation: Transport fee and delivery time markup the price of products.
Production of pulses: Production may be affected by weather conditions, insect and pest attacks, and high or low rainfall. When production is down in that year, but the demand is still there, the price will rise.
Labor Resource: Over the years, people migrate to the cities where the villages’ total labor keeps going down. Farmers need to hire from other villages and pay more. The overall price goes up.
Production Volume from other countries: World mung bean prices are primarily determined by the volume of production and quality of the crops in China and Burma, and as a result, are continually responding to supply issues in these exporting countries.
Grading: Processing grade is a broad classification for lower quality beans. Prices can vary by as much as USD 150 per Tonne depending on appearance and quality, i.e., whether good or low-quality processing grade.