According to bean market news, recently, the depreciation of the US dollar has affected the export bean market, and coupled with the recent sluggish market demand, it has led to a continuous decline in bean prices.
A bean trader stated: "The main reason is the cold trading that has caused the continuous decline in bean prices, and at the same time, the US dollar exchange rate is also falling."
In the second week of August, the price of black bean (FAQ/RC) had risen to over 3.05 million Myanmar kyat per ton, but it had fallen back to 2.94 million Myanmar kyat per ton on August 23.
Similarly, the price of red bean (Red/RC) had also risen to over 2.77 million Myanmar kyat per ton, but it fell back with the depreciation of the US dollar exchange rate, and currently it is only about 2.62 million Myanmar kyat per ton.
It is understood that the US dollar exchange rate was about 4,470 Myanmar kyat per US dollar at the beginning of August, but currently, the market is only about 4,330 Myanmar kyat per US dollar.
Although the main export market for Myanmar beans, India, has seen an increase in bean prices, the domestic market trading is sluggish, and the market is cold.
It is reported that recently, parts of India, including the planting areas of various beans, have been invaded by floods.
The various beans planted in Myanmar are mainly exported to India and China, and currently, according to the memorandum of understanding (MOU) signed by the two countries, India imports 250,000 tons of black beans and 100,000 tons of red beans from Myanmar every year. This memorandum of understanding will expire in the 2025-26 fiscal year, and it is reported that in the newly signed memorandum of understanding, India will increase the purchase volume, purchasing 200,000 tons of green beans and 500,000 tons of black beans annually.
Currently, Myanmar is facing high production costs and a decrease in production due to abnormal weather conditions.