70% of export earnings of agricultural products to be used in purchasing diesel
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Hsu/ Yoon (NP News) – Jan 9
The Myanmar Rice Federation (MRF) reported that 70 percent of export earnings of the agricultural products are projected to be allocated to diesel and premium diesel purchases, reflecting the substantial dependence of both industrial and agricultural sectors on these fuels.
In December, the Union of Myanmar Federation of Chambers of Commerce and Industry (UMFCCI) has announced that 70% of the export earnings from rice, broken rice, beans and pulses, and corn will be allocated for the import of petroleum payments.
To facilitate the new export earnings allocation, coordinated efforts are underway between businesses, governmental departments, and banks.
It is reported that the scope of the program is limited to facilitating access to petroleum and fuel needed for productions in the industrial and agricultural sectors.
U Ye Min Aung, chairman of the MRF, told NP News, "Our coordination efforts have commenced. We are collaborating with companies, respective department, and banks to establish a direct link between exporters and petroleum importers. This initiative aims to stabilize the export market and secure a more stable exchange rate. Specifically, the program is designed to ensure the availability of diesel and premium diesel for the industrial and agricultural sectors, and is not intended for general use."
Reports suggest that the direct linkage between exporters and petrol importers could benefit both petrol market price stability and a more stable exchange rate.
Reports also indicate that 70% of the export earnings from the export declaration (ED) for rice, broken rice, beans and pulses, and corn will be transferred to the foreign account of the petroleum importing company for the importation of petroleum.
To import petroleum, if the importer is the company itself, the company has to make the payment from 70% of the abovementioned export earnings through the company’s foreign account.