Chiang Mai (Mizzima): In the backdrop of plummeting prices of pulses and beans three big wholesale traders are under investigation by 'Bureau of Special Investigation' (BSI) for non-payment to sellers, according to pulse and bean wholesale traders circle.

The wholesale traders Phyo Kyaing, Thet Naing Oo Ko Htay Aung tarted future trade in bean green and bean gram in the export market. Now they are on the run after they were unable to pay their dues as the prices of these export items started falling sharply.

"Phyo Kyaing surrendered and Thet Naing Oo and Htay Aung are still on the run. BSI kept Htay Aung's wife in their office. Thet Naing Oo's uncle stood guarantee for his nephew", a big bean trader in Rangoon told Mizzima.

These three wholesale traders owed hundreds of millions of Kyats to the sellers and their sub-contractors who in turn bought these commodities from the producers who they owe Kyat five to 20 million. These persons lodged complaints to the concerned trading houses.

"These big buyers bought hundreds of tons of beans for anything between 500-1,000 tons. We lost our money and lodged complaints to trading houses. But we did not lose much money. Some suffered to tune of hundreds of tons of beans," the merchant said.

Another bean trader from Monywa told Mizzima, "We lost too and our business suffered. Trading in beans has become sluggish as the prices are falling. The small traders suffered as big traders lost a lot. Our profit fell by about 33% compared to last year".

The three traders are famous and affluent people attached to beans trading houses and have a close rapport with the higher authorities in the military regime, trading circles said.

Currrently BSI is handling Phyo Kyaing's case and have told the other two who are on the run to surrender within 10 days or else they would be prosecuted.

Htay Aung's wife is under detention by the BSI and his two brothers-in-law are under investigation too, a person close to the traders said.

The future traders paid high prices when they bought the commodity and then they could not pay their dues when they had to settle their accounts because of the falling prices.

The big wholesale traders from Rangoon usually appoint their agents to buy the commodities on their behalf from the producers by paying 1% commission as fees on the trade value.

These agents face difficulty when their principals do not pay money in time. Most of these agents could not pay their dues on behalf of the wholesale traders. Thus trading took a beating in rural areas, the buying agents said.

"Though this is a seasonal price fall in pulse and bean trading, this year is worse than previous years as the importing country India did not pay a good price. Therefore the situation pulled the pulse and bean prices in the domestic market down," a big trader of pulse and beans in Rangoon told Mizzima.

One ton of pulse and bean could fetch Kyat 700,000 last year but it fell to over Kyat 400,000 this year, a loss of about Kyat 300,000 per ton.

According to a trade bulletin issued by Commerce and Trade Department, the prices of all Burmese pulses and beans are falling in the Indian market. Moreover the global prices of other crops and commodities are falling too which made the demand lower for these commodities in the domestic market.