Rupee-kyat trade arrangement may give India an edge in textile trade

The minister from Myanmar hopes that the trade volume between the two countries will double once the arrangement is worked out, as Myanmar has been hit by US sanctions and is unable to earn sufficient foreign exchange to import goods from its trade partners. 

The country has already arranged trade in Yuan-Kyat with China. Importers have been instructed to pay solely in yuan if they are importing goods from China. Myanmar's goal is to conserve US dollars and lessen its reliance on the global currency. For the same purpose, it is working towards initiating trade with India in rupees. 

Myanmar imports fabric, yarn, and cotton from China and India. However, it is primarily dependent on India for cotton. China is a key source for Myanmar's yarn and fabric imports. The country also produces raw materials domestically. According to Fibre2Fashion’s market insight tool TexPro, Myanmar imported fabric worth $875.872 million in the first four months of this year, with China supplying around 90 per cent. India supplied less than one per cent of the fabric. Myanmar's fabric exports were $3.9 million from January to April 2023, with India supplying around 20 per cent. 

China and India were the two top nations for yarn import by Myanmar, although its total yarn import was relatively small, amounting to $58.437 million from January to April 2023. China supplied more than 75 per cent of the yarn to the nation. 

As per TexPro, Myanmar imported apparel worth $116.782 million in the first four months of 2023. It imported more than 80 per cent of its garments from China. India was the fourth largest source for Myanmar, with a share of less than two per cent. In terms of garment exports from Myanmar, Japan was the top market, with around 30 per cent share from January to April 2023, when its total shipment value was $1,541.316 million. 

Fibre2Fashion News Desk (KUL)