Businesses trading in beans and pulses have been asked by the Ministry of Commerce to submit their credit and debit lists by May 6 following a scandal involving billions of Kyats, according to an arbitration committee.
The scandal has involved merchants from Bayinaung bean market in Yangon Region who sold large amounts of beans and pulses by delivery order to buyers from India without having any product at hand.
“The incident is partly caused by sudden rise of bean price. They have sold beans without having any beans at hand. They can compensate in more amount in this crisis if they do it sooner. If they compensate later, the soaring bean price will put them in worse situation,” said Ohn Saing, the chairman for Bayinaung wholesale centre.
Trading companies such as Moe Thet Company Ltd. sold over 10,000 tonnes of beans and were accredited US$ 12 million which they are now being urged to pay back.
The bean merchants association and the Yangon Wholesale Centre presented the case to the Ministry of Economic and Commerce which in turn has formed an arbitration committee to help settle the debts owed by Moe Thet Company and other traders.
“If the debtor pays back all that now, he can settle 90 percent. But the lists cannot be confirmed yet. According to the lists he gave, he can compensate 80 percent to 90 percent. If so, he won’t lose much. That’s why he submitted them to us quickly,” said Ohn Saing.
The committee has received all debit and credit lists submitted by the company and requested all dealers also submit debit and credit lists should further problems arise.
The prices of beans and pulses has been on the rise since early April due to a reduced crop yield this year and strong demand from India, according to traders from the Bayintnaung Wholesale Centre.
“Buyers from India are continuously purchasing beans here. This year’s crop has also dropped. So bean prices won’t go down. Instead, it’s creeping up,” said Tun Lwin, chairperson of beans and sesame seed traders association.
Myanmar cultivators have also focused on green mung bean to export in large quantities to China where they will get higher prices.
Source: ELEVEN Myanmar