India's Purchasing Power Declines! Drops 100,000 Kyat in a Week

According to reports from Burmese media, traders have revealed that due to the decline in purchasing power of India, the main buyer of Burmese legume products, the prices of black gram and pigeon pea continue to fall. Currently, in the domestic market of Myanmar, the price of newly listed black gram has dropped from 3.5 million kyat per ton to about 3.4 million kyat within a week, while the price of pigeon pea has also fallen from 3.85 million kyat to 3.4 million kyat.

Reviewing the situation from early September, the price of black gram once soared to 4.5 million kyat per ton, while the price of red pigeon pea reached 5.2 million kyat per ton. However, due to fluctuations in the USD exchange rate and weakened foreign purchasing power, prices have continued to decline. Market analysts point out that given the situation of new beans entering the market, the price of black gram may further decrease. However, some believe that due to the reduced domestic legume production and India's demand for legumes, the downward trend in prices may be alleviated in the long term.

Currently, the price of black gram in India is also declining, and new beans will begin to enter the market in the coming months. In addition to importing from Myanmar, India also imports black gram from Brazil and other countries and pigeon pea from Africa. Notably, India has extended the free purchase rights for black gram and pigeon pea until the end of March 2025.

Myanmar and India have signed a memorandum, under which Myanmar has the right to export 250,000 tons of black gram and 100,000 tons of pigeon pea to India annually between 2025 and 2026. Moreover, if the newly signed memorandum is implemented, the procurement volume of black gram may increase to 500,000 tons, while that of pigeon pea may increase to 200,000 tons.