Myanmarese Mung Bean Guide

• 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

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 

• 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

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. 

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.

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.

Many producing regions include Magway, Mandalay, Bago, and Yangon. Suppliers don’t buy from other suppliers to meet the demand as exporters and farmers are not tied to each other with contracts.

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

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).

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.

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.

• 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

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.

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

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.

Regarding quality, Australia is better, but in terms of price, Pakistan and Tanzania are at an advantage. However, East Asian countries still prefer to buy from Myanmar as Myanmar offers non-GMO mung beans of smaller sizes, which East Asian buyers prefer.