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Mizzima: Burmese traders at a loss



Burmese traders at a loss in legal border trade with Bangladesh

By Our reporter, Mizzima News Group
Dhaka, January 30, 2000

The Burmese traders who are doing legal border trade between Burma and
Bangladesh are facing loss many lakhs during the month of January. The
wholesale dealers of Bangladesh are offering prices for onion, garlic,
ginger and spices four or five times less than the fixed prices, causing
heavy loss to the Burmese traders.

A Burmese trader in the legal trade is taxed 300 US dollars by the Burma
Custom if the turn over of his or her trade is over Kyat ten lakhs. (The
rate of dollar exchange is Kyat 350 to 380 in open market.)

Because of good offer in the past, traders from Shan State, Rangoon
Division, Irrawaddy Division and Arakan State of Burma used to bring
onions daily to Bangladesh worth about 30 to 40 lakhs Kyats.

Onion Kyat 100 per viss at Burma when reach Bangladesh is offered only
Kyat 60/70 and that too after selecting better ones and throwing away
others. If they don't sell onions due to low price, onions get bad and
prices are further reduced. Thus, the Burmese traders are losing in
lakhs for every trip.

However, traders from Bangladesh make more profits as Burmese onions
have good market in Bangladesh. The onions from Burma reach not only
border areas but go up to Chittagong and Dhaka. The whole sellers at the
border in Bangladesh make monthly profit up to 30 million Kyats.

But, Burmese traders continue do the business.

"We had taken loan and bought these goods because of good offer by
traders from Bangladesh. As traders from various parts of Burma are
coming down in numbers for this business, Bangladesh traders cut prices.
We cannot go back as there is less demand in Burma and therefore we have
to sell at a loss", said a Burmese trader when asked why he continues
this "loss" business.