Myanmar Pulses Production, Trade and Technology: Issues and Prospects

• San Thein and San San Yi • Contact Email: usanthein@gmail.com

• Paper presented to “Pulses for Sustainable Agriculture and Human Health”

• May 31- June 1, 2016

• IFPRI, NASC Complex, Pusa, New Delhi

Pulses and Bean Sector in Myanmar

Leading country in bean and pulses among ASEAN nations

Second largest sown area after rice (4.45 million ha),

occupying 21 % of total crop sown area

Over 40% export earning of total agricultural commodity is

contributed by pulses alone

18 kinds of pulses, including other pulses, are grown

Sown in monsoon and post monsoon season

Most of the pulses (black gram, green gram and pigeon pea)

grown in Myanmar are for export

Important vegetable protein source for the daily

consumption of Myanmar people.

Some pulses grown for green manure, soil conservation and

by-products are valuable for animal feed and fuel

Legume crop can be easily grown than cereal crops

Legume crop need less water than cereal (1 ac of rice used

water=3 – 4 acre for pulses)

Comparison of Export Value and Volume of Important Crops for 3 Years

No Crops

Name

2012-2013 2013-2014 2014-2015

Volume Value

($- million) Volume

Value

($- million) Volume

Value

($- million)

M. Ton % Million % M. Ton % Million % M. Ton % Million %

1 Rice & its

products 1470680 34.66 568.94 23.53 1233367 27 460.696 19 1812332 33.26 644.729 25.31

2 Pulses

crops 1418488 33.43 912.05 37.72 1369233 30 948.608 40 1323679 24.29 1083.434 42.54

3 Maize 565111 13.32 184.44 7.63 1061028 23 286.513 12 1360477 24.97 394.528 15.49

4 Oil Crops 197719 4.66 327.61 13.56 192332 4 354.999 15 91069 1.67 180.890 7.10

5 Rubber 103151 2.43 290.14 12.00 83715 2 195.082 8 77010 1.41 111.048 4.36

6 Fruits &

vegetables 444121 10.47 104.43 4.32 612242 13 96.053 4 710104 13.03 108.141 4.25

7 Kitchen

Crops 43993 1.03 29.99 1.24 56512 1 27.178 1 74801 1.37 24.334 0.96

Total 4243263 100 2417.58 100 4608429 100 2369.1 100 5449472 100 2547.104 100

2012-13 2014-15 2013-14

Yearly trend of pulses export volume

Source: Haggblade et al., 2014, FAO & MOAI data

Trends in composition of Myanmar pulses export

Pulses 1990 1995 2000 2005 2010 2013

Black gram 27 117 235 407 615 658

Green gram 15 128 145 144 303 302

Pigeon pea 110 89 89 193 296

Chick pea 40 40 47

X 000 MT

Okatomo, 2008; E Trade (2014); Soe Win Maung, 2014

Last 8 yrs average for export value: BG - 43%, GG – 28 %, PP –

17%, Other pulses – 12 %

(MT)

Sr. Varieties Myanmar

name

Total (million)

Sow

(ha)

Harvest

(ha)

Yield

Rate

(mt/ha)

Production

(mt)

1 Black gram Matepe 1.098 1.098 1.44 1.577

2 Green gram Pedisein 1.173 1.173 1.31 1.515

3 Pigeon pea Pesingone 0.619 0.619 1.36 0.84

4 Chick pea Kalape 0.378 0.378 1.6 0.604

5 Cow pea Pelun 0.145 0.145 1.29 0.187

6 Soy bean Peboke 0.151 0.151 1.52 0.228

7 Sultapya Sultapya 0.11 0.11 1.28 0.141

8 Bocake Bocake 0.133 0.133 1.26 0.168

9 Sultani Sultani 0.013 0.013 1.41 0.018

10 Butter bean Htawbatpe 0.064 0.064 1.4 0.089

11 Rice bean Peyin 0.051 0.051 1.13 0.057

12 Duffin bean Pebyugale 0.013 0.013 1.12 0.014

13 Lab Lab bean Peygyi 0.122 0.122 1.32 0.162

14 Lima bean Pegya 0.015 0.015 1.08 0.016

15 Garden pea Sadawpe 0.054 0.054 1.33 0.071

16 Lentil bean Peyaza 0.002 0.002 1.87 0.001

17 Peanauk Penaok 0.139 0.139 1.01 0.14

18 Other pulses Others 0.247 0.272 1.14 0.311

Total 4.527 4.552 1.36 6.139

Black gram Green gram Pigeon pea Chick pea

Cow pea Soy bean Sultapya Bocake

Sultani Butter bean Rice bean Duffin bean

Lab Lab bean Lima bean Garden pea Lentil bean

Peanauk Other pulses

Pulses and Beans Production in Different

Varieties for 2014-2015

Status of Pulses Sowing Area for 4 Years (From 2011 up to 2015)

0

0.2

0.4

0.6

0.8

1

1.2

1.4

Total Sowing (million ha) 2011-12

Total Sowing (million ha) 2012-13

Total Sowing (million ha) 2013-14

Total Sowing (million ha) 2014-15

Geographic distribution of area cropped in pulses in Myanmar 2015

Sr Location Pulses Sown area

Area (Acre) Percent

Upper Myanmar

1 Sagaing 1026977 23%

2 Magway 858922 19%

3 Mandalay 584498 13%

4 Shan(South) 93588 2%

5 Shan(North),(East),(Chin),(Kachin) 110531 2%

Subtotal 2674516 59%

Lower Myanmar

6 Bago 803645 18%

7 Ayeyarwady 683557 15%

8 Yangon 173624 4%

9 Kayin, Kayah, Mon, Rakhine, Tanintharyi 149154 3%

10 Naypyitaw 69544 2%

Subtotal 1879524 24%

Total Myanmar 4,554,040 82%

Crops

Cost and Benefit Ratio

2012-13

2013-14

2014-15

2015-16

(Expect)

Black gram 1: 1.96 1: 2.03 1 : 3.18 1 : 2.06

Green gram 1: 1.44 1: 1.85 1 : 2.00 1 : 2.07

Soybean 1: 1.91 1: 1.93 1: 2.41 1 : 1.30

Pigeon pea 1: 1.45 1: 1.64 1 : 2.38 1 : 2.65 Cow pea 1: 1.52 1: 1.60 1 : 1.76 1 : 1.49

Chick pea 1: 1.86 1: 1.86 1 : 2.79 1 : 2.05

Cost -Benefit Ratio of Pulses

11

Net margin,

$/ha

Labor productivity,

$/day

Production costs,

$/ha

Labor use,

days/ha

Monsoon paddy 114 4.75 510 103

Dry season paddy 246 9.20 626 63

Black gram 267 9.29 237 45

Green gram 581 15.92 355 51

Chickpeas 141 6.85 266 42

Groundnuts 324 8.32 421 65

Sesame 202 8.54 217 44

Sunflower seeds 377 15.68 121 30

Comparative cost, labour productivity and grow margin in

cultivation of paddy, pulses and oil seed crops, 2015-1016

Source: Sergiy Zora, The World Bank, May 2016. Report Launch May 11, 2016,

Yangon, Myanmar.

Black gram yearly price movement in two markets vs. 5 Yr. average: E trade, 2015

Price movement, Yangon Year Yearly mean

Yangon market price of Black gram , USD/Mt

5- year average price, 2008-12

2008 443 631

2009 613 631

2010 842 631

2011 703 631

2012 553 631

2013 563 631

2014 Up to

October

724 631

Price movement, Mumbai Year Yearly mean

Mumbai market price of Black gram , USD/Mt

5- year average price, 2008-12

2008 569 755

2009 743 755

2010 1007 755

2011 836 755

2012 623 755

2013 610 755

2014 up

to October

788 755

Monthly mungbean price variation between Mumbai and

Yangon market from 2008 to 2014

Source: E trade, 2014 Nov:

Year Annualize

price volatility

2008 40.03 %

2009 36.99 %

2010 48.34 %

2011 22.15 %

2012 34.06 %

2013 28.02 %

2014 25.40 %

Annualize black gram price volatility in Yangon

from 2008 to 2014 (up to October)

E Trade, 2014

0

200

400

600

800

1000

1200

1400

1600

1800

2000

Pulses Price (FOB Yangon), last week of every month, Jan 2015 to April, 2016, Soe Win Maung, 2016

Black gram Pigeon pea Green gram Chick pea

0

200

400

600

800

1000

1200

1400

1600

1800

2000

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr

USD

/mt

Pulses Price (FOB Yangon) , (Jan,2015 - Apr, 2016) mean monthly value, Soe Win Maung, 2016

Black gram Pigeon pea Green gram Chick pea

Effect of Indian Market Demand on Distribution of Myanmar Black gram Export by Month, 2015

• Soe Win Maung, 2016

Sudden High Rise of Indian Market Demand

• The characteristic of this budget year 2015-2016 is the record high surge of pulses prices due to Indian demand pull.

• It affected highest ever price level in Myanmar pulses market.

• In black gram, fob Yangon price reached its highest price level of 1,820 USD / Mt in October 2015, which is more than the double of price level of 860 USD / Mt in January, 2015.

• Likewise, pigeon pea price skyrocketed from 760 to 1,570 USD / Mt in the same period.

• As a result, distribution of pulses export showed faster and larger export occurred in the early marketing season in comparison with the regular trade pattern.

• The prices of other pulses showed not much fluctuated like black gram and pigeon pea.

Outlook for Pulse Export

• In previous years, Myanmar encountered widespread flood, abnormal hail storm, ElNino effect, stress of unfavourable soil moisture, etc.

• Pulses output in 2015-16 is estimated to decrease from 6.5 to 5.6 million Mt, by 8 % decline.

• Outlook for pulses production in Myanmar for 2016-2017 is to restore production around 6.1 million MT and to export about 1.3 million Mt.

• Promotion of export is one of major priority of the New Government. It aims to triple the export earning of the country this year.

Opportunities and Barriers

• In the new Democratic government, business environment becomes more favourable. Myanmar exporters can enjoy GSP benefits for the products of their country.

• But for most cases, there are still barriers such as fulfillment of the requirements in quality standard, SPS measures, certification, traceability system, etc.

• Trade financing and high transport costs, limited access to credit for business expansion must be4 areas of further improvement.

Comparison of Sowing Area and High Yielding Variety Area in 2014-2015 (Pulses)

Crop Sowing Area-ac

Sowing HYV-ac

Area %

Black Gram 2712,047 10,265 0.38

Green Gram 2899,154 14,361 0.50

Pigeon Pea 1529,136 32,853 2.15

Chick Pea

934,186

25,674

2.75

Ground nut 2346,187 32,256 14

Other Pulses > 0.02 %

Use of improved seed is severely limiting in pulses cultivation.

Yearly production of pulses seeds by Dept. of Agriculture

6254

3748

6412

2011-2012 2012-2013 2013-2014

25,016

14,992

25,648

2011-2012 2012-2013 2013-2014 ac

(Seed Distribution) Acreage distributed with use of

seed.

Source-DOA

Total production of seed(in basket)

1 basket = 32 Kg

Way forward by Agriculture Department

• Enormous scope for introduction and replacement of old cultivars across pulse crops (BG, GG, Chick pea and PP)

• Strengthening formal/informal seed systems is the key for further enhancing quality productivity across all crops

• Tracking of seed entrepreneurs/capacity building and their seed multiplication process, learning lessons from those experiences is highly valuable

• Focused crop improvement for development of short-duration, disease resistant and climate smart cultivars/adaptation to climate change

Breeder Seeds

Foundation Seeds

Registered Seeds

DAR

Seed company

Normal farmers

Market demand, Consumer

Preference and local

Adaptability

Certified Seeds

DOA

Contact farmers

Seed Flow/ Procedure of Seed Production

DOA Proposed Public Private Partnership for Seed

PUBLIC SECTOR

DAR&DOA

Exte; Seed

National Seed

Committee

Seed Law

SEED CERTIFICATION BODY

Breeder seed

Foundation seed

Registered seed

Private Community Leading Companies (CS1)

Farmers Community Based Seed Multiplication (CS2, in VSB & FBS)

Seed marketing based on national and international demand

As for quality seed

Distribute with systematic Seed/ storage/ packaging

Seed Multiplication Technology by Seed/Ex;

Staffs-DOA

Pulses Consumption Pattern

• Monthly Household Expenditure Survey indicated that average monthly expenditure for pulses for the whole Union is 1.75 percent of total expenditure including food and non-food items. The monthly expenditure on pulses was highest in Mandalay Region (Dry Zone) and lowest in Rakhine State (Coastal region).

• Source: CSO (2012)

• High export demand has generated rural household income increase but its effect on small holder livelihood in the dry zone still is not well understood.

Stepping up from the Primary Industry Status?

• Pulses total are currently One Billion export earning crops for the country. BG or GG offers about 1,000 USD /Mt of output for farmer.

• Land resource allocation has led farmers to focus on monsoon paddy > pulses in post monsoon. It becomes more attractive to farmers as compared to sugarcane crop.

• However, pulses business offer low degree of agro-industrialization. Myanmar agriculture sector may remain as primary industry for some decades.

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