Rakhine State — Traders at the Maungdaw border trade post in Rakhine State, which contributes to the state's dollar income, have attributed the decrease in trade activity to shifts in the trade policy of the Military Council.
Traders attribute the decline in Maungdaw border trade to a directive from the Military Council's Ministry of Commerce, which stipulates that agricultural and aquatic products can now only be exported from the Sittwe trading post.
Due to this restriction, commodities such as rice, broken rice, pulses, sesame, peanuts, peanut seeds, and onions, as well as various freshwater and saltwater fish, have been prohibited from being exported from the Maungdaw border trade post since September and only the remaining goods have been permitted for export.
"The trade conditions at the Maungdaw border are worsening. It has reached a point where, every one or two days, there are no boats departing, and this pattern of inactivity is becoming more frequent," mentioned an undisclosed trader from the Maungdaw border.
Previously traders from Maungdaw border reported that 3 - 5 boats per day were engaged in trade with Bangladesh. However, now, it occurs only once every 3 days.
The Junta imposed a ban on the export of rice, broken rice, pulses, sesame, peanuts, peanut seeds, onions, and various freshwater and saltwater fish through the Maungdaw border town , in reaction to Sonali Bank in Bangladesh's suspension of withdrawals from deposits held by two Myanmar-owned banks. The Military Council has imposed a ban on the export of rice, broken rice, pulses, sesame, peanuts, peanut seeds, onions, and various freshwater and saltwater fish through the Maungdaw border town.
The Department of Trade under the Military Council issued an order on September 1, scheduled to take effect on September 4, stating that individuals desiring to export restricted goods must exclusively employ the trade post located in Sittwe, the state capital.
U Myint Thura, serving as the spokesperson for both the Military Council's Ministry of Commerce and the Director General of the Department of Trade, clarified to Myanmar Now that these restrictions are being enforced to prevent illicit exports that could arise following the Bangladeshi government bank's ban on Myanmar exports and trade payments.
Traders pointed out that the Military Council's policy shift is causing negative impacts on traders in Maungdaw, entrepreneurs on the mainland, as well as boatmen and laborers involved in border trade.
According to traders, a substantial portion of Maungdaw's border trade revolves around the export of various freshwater and saltwater fish. Furthermore, they said that Rohus, which are transported from the mainland using refrigerated trucks for export via the Sittwe border trade post, experience a decline in quality, and these issues have led to debates among traders from both sides of the border.
"They are aware that certain items dispatched from the Sittwe Shwe Min Gan border trade post, are of sub-standard quality upon reaching their destination on the other side. It's indisputable that perishable goods sent from Sittwe exhibit lower quality compared to those sent from Maungdaw when they reach the neighboring country. However, the Department of Trade maintains this policy," stated U Aung Myint Thein, chairman of the Maungdaw Border Trade Association.
In September, the total exports from the Maungdaw border trade post to Bangladesh reached a value of 1.425 million US dollars.
In 1991, the Maungdaw border trade post was under the management of the Myanmar Export Import Corporation. It was then reestablished in 1995 as the Department of Border Trade, Director's Office, where it played a pivotal role in facilitating bilateral trade operations.
In the past, each bank transfer transaction was limited to US$2,500, and currently, each bank transfer transaction is set at US$50,000.
However, following the ban imposed by Sonali Bank of Bangladesh on MFTB and MICB, two Myanmar-owned banks from withdrawing dollars, the trade operations between these two banks and Bangladesh Bank at the Maungdaw border trade have experienced a significant decrease.
