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Economic Analysis of Green Mung Bean in Selected Area, Myanmar

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Economic Analysis of Green Mung Bean in Selected Area, Myanmar International Journal of Science and Research (IJSR) ISSN: 2319-7064 ResearchGate Impact Factor (2018): 0.28 | SJIF (2018): 7.426 Economic Analysis of Green Mung Bean in Selected Area, Myanmar Yu Yu Tun1, Aung Phyo2 1Associate Professor, Department of Agricultural Economics, Yezin Agricultural University, Nay Pyi Taw 2Lecturer, Department of Agricultural Economics, Yezin Agricultural University, Nay Pyi Taw Abstract: As mung bean is one of the income remunerative crops in Myanmar, this study was focus on economic analysis and market performance of green mung bean producers and market intermediaries along the supply chain in selected areas of Nay Pyi Taw and related market regions. The objectives are to understand the existing participants, marketing activities, and distribution channel in the marketing system of mung bean and to analyze the cost and profitability of mungbean producing farmers and market participants along the channel in the study area. Main marketing actors are farmers, village collector, local wholesalers, and wholesalers (exporter) in Mandalay and Yangon markets. Marketing activities analysis showed farmers still have lower standard of grading and standardizing and also limited source of market information as compared to other market participants been indication to upgrade an efficient market information system to all. In the marketing channel, farmers preferred to sell local wholesalers and only very few farmers sold to village collector and most of the farmers in the study areas have directly contact with the local (townships) wholesalers. Local wholesalers traded their goods to the main agents such as Mandalay and Yangon wholesalers/exporters. In the results of profitability analysis, Farmers got the benefit cost ratio of 1.97 in mung bean production in the study area implied that for every 1.00 MMK invested in mung bean production in the area, 0.97 MMK was returned, thus further confirming the profitability of the enterprise. Among the market intermediaries the calculated absolute marketing margins for exporters to some Asia and EU markets obtained the higher margin than the other market participants. Keywords: Mung bean, Marketing activities, Marketing channel, Marketing margins, Profitability 1. Introduction In Myanmar, green mung bean is mainly gown in two seasons such as monsoon and winter. Depend on the market In Myanmar, pulses started grown under the British Rule demand; farmers grew different varieties of mung bean with (1885-1948) brought from India. Starting from these days, a different times (Pedi Shwewar: Jan-Feb, Anya Shwewar: significant proportion pulses exported to India and continued May-Oct, TaungooShwewar: Oct-Nov, Pakokku green mung today. One of the major reasons of increased productions of bean: Oct-Dec). Producing States and Divisions are Kachin, pulses is that pulses can be planted at the leftover moisture Kayin, Kayar, Sagaing, Bago (East and West), Magway, of the monsoons after monsoon rice with not much requiring Mandalay (Nay Pyi Taw), Mon, Shan (North), Yangon and irrigation facilities in the absence of rain. This makes their Ayeyarwady. Among them Yangon and Bago (east) cultivation undemanding and cost effective with no Divisions mainly produced Pedi shwewar, Bago and Magwe additional allocation of resources required. Furthermore, the produced AnarShwewar and others regions produce green shorter growing period from plantation to harvest and a mung bean, respectively. Table 1 presents the trend of green ready market with a steady demand coming from mung bean sown area, yield and production in Myanmar neighboring India pushed the beans and pulses production during 2007/08 to 2016/17. Highest sown area was reported further (Myanmar Insider, 2015).Pulses followed the second at 1221 thousand hectare in 2016/17 with a production of place of total crop sown area. Beans and pulses in Myanmar 1597 thousand ton. This records an increase from the are normally grown immediately after the monsoon rice in previous number of 1210 in 2015/16. Total sown area of the delta region (lower parts of Myanmar) and are grown as mung bean is updated yearly, averaging 1066 thousand a monsoon crop in the central plain areas and Shan State hectare from 2007/08 to 2016/17. The averaging yield per (East part of country). About 70 percent of beans and pulses hectare reached a high of 1.32 ton in 2015/16 and a record are grown during the winter season, with average yields low of 1.13 ton in 2007/08. ranging between 1.0-1.3 MT/hectare. There are about eighteen varieties of pulses being cultivated commonly in Table 1: Sown area, yield and production of green gram in Myanmar; the most significant pulses are black gram Myanmar Sown acre Yield Production (matpe), green gram (mung bean), pigeon pea (Toor whole), Year soy bean, chick pea and cow pea. Of these, black gram, (000' ha) (Ton/ha) (000' Ton) green gram and pigeon pea, are the most important, 2007-2008 1066 1.13 1204 accounting for over 80% of the total export value and 70- 2008-2009 1039 1.21 1257 2009-2010 1076 1.21 1303 75%of total bean and pulse production. 2010-2011 1121 1.29 1448 2011-2012 1098 1.22 1344 Green mung bean (binomial name is Vignaradiata), also 2012-2013 1087 1.28 1388 known as green bean are mainly cultivated in India, China, 2013-2014 1123 1.29 1452 Thailand, Philippines, Vietnam, Indonesia, Myanmar, 2014-2015 1173 1.31 1536 Australia, Iran, Eastern Africa and Bangladesh, but also in 2015-2016 1210 1.32 1596 hot and dry regions of southern Europe and southern USA. 2016-2017 1221 1.31 1597 Volume 8 Issue 12, December 2019 www.ijsr.net Licensed Under Creative Commons Attribution CC BY Paper ID: ART20203145 DOI: 10.21275/ART20203145 394 International Journal of Science and Research (IJSR) ISSN: 2319-7064 ResearchGate Impact Factor (2018): 0.28 | SJIF (2018): 7.426 Source: data from Ministry of Agriculture, Livestock and production and marketing data such as cost of production Irrigation (MOALI) and output of marketable surpluses, sales, major buyers, prices, sales outlets etc. The second set of questionnaires As a result of this diversity in geographic and seasonal were administered on market intermediaries colleting the production, mung bean offers a longer marketing season marketing activities to generate information on costs, prices, than other pulses. While most mung bean from Upper returns, quantity, handling, transport, sales outlets, Myanmar gets sold through Mandalay for export to China, processing, packaging, and storage etc. Primary data was some finds its way south to Yangon for export to other collected during the cropping seasons of 2017 and 2018 Asian markets. The main flow of mung bean was from the from the mung bean growing farmers and market producing areas to the respective town local markets and intermediaries.Farm level primary data were collected and reached to the wholesale markets in Yangon and Mandalay. analyzed from 71 mungbean growing farmers in two villages Besides, pulses are coming into the Yangon wholesale at each of Tatkon and Pyinmana Townships and 22 related market (BayintNaung Crop Exchange Center) all year round market intermediaries included in the Nay Pyi Taw, so that old crops and new crops usually overlap. Mandalay and Yangon during October, 2017 to January, BayintNaung Crop Exchange Center was the focal point for 2018. A total of 22 market intermediaries consist 1 village the marketing of dry goods including pulses. Buying and collector, 14 local wholesalers, and 7 wholesalers/exporters selling wholesale prices of large scale and town wholesaler’s were interviewed with different set of structured distribution price are happening in this market. Then, questionnaires Mandalay market (Mandalay Crop Exchange Center) which is the second largest one located in the central part of Descriptive analysis was used to obtain the general Myanmar acts as the distributor for the Upper Myanmar. characteristics of the sampled participants. As a basic Therefore, among the pulses markets, two important pulses analysis mapping is the identification of the actors markets were Yangon in Yangon Region and Mandalay in participating in the production, distribution, marketing and Mandalay Region. The price signal of mung bean from the sale of a particular product. A sequence of product flow international market concerned was the price of Indonesia, from producers to consumers by using various marketing Malaysia, Singapore, EU markets and China market. function is marketing channel. This mapping assesses the Because, China is the neighboring country of Myanmar as characteristics of actors, profit and cost structures, flow of well as the main importer of Myanmar pulses while good throughout the chain etc. Indonesia, Malaysia, Singapore and EU markets were also importing countries from Myanmar. The export prices of Enterprise budget analysis enables to show the differences in Myanmar pulses depended on the demand of the other net benefits under several resources allocation in such a way importing counties. Therefore, Indonesia, Malaysia, as to help farm management decision. Therefore, this study Singapore and EU markets and China were the potential and applied the cost and return analysis, to determine the promising markets for Myanmar. profitability of the mung bean production in the study area. Both cash and non-cash items were included in the The economics activities analysis has impact on the income estimation of material cost and labor cost. Non-cash items of producers, village collectors, local wholesalers, for material cost included seeds, family labor, owned wholesalers and exporters. This information could help working animals, farm yard manure and cost of inputs. Cash farmers, market participants and others, who need the payment for labor included hired labor payment for information for their respective purposes. Improving production. Under the above categories gross benefit or total marketing facilities for agricultural crops and mung bean revenue is multiply output per unit area and the price farmers in particular would enable to plan their production received by the mung bean growers.
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