Myanmar quake may hit pulses, rice

YANGON (Commodity Online) : Exactly two weeks after hitting Japan, a relatively mild earthquake jolts Southeast Asia’s Myanmar, Thailand and Laos threatening to impact their economies.
The magnitude 6.8 quake hit in an area where Myanmar, Thailand and Laos meet. The quake was just 10 kilometers deep and according to U.S. Geological Survey, 600,000 people could feel shaking anywhere from strong to violent at that strength and depth.
Analysts are beginning to worry about an immediate impact of the quake though it wasn’t a strong one like that hit Japan a couple of weeks ago.
However, a clear picture of the magnitude of destructions and how far it will affect the economies of the three nations in particular and region’s and global economy in general is remained to be seen.
As usual, commodity markets are the first to hit by any major event as evident from the Japan crisis. The chances of Southeast Asia quake affecting commodity markets in general are highly unlikely at this point.

However, some agricultural commodities, especially pulses may witness an immediate impact as Myanmar is one of the major pulses producer and exporter.
Myanmar’s economy is mainly depended on its agri products. Rice, beans and pulses are the major export items which earned foreign currencies for Myanmar.
The country earned nearly $1 billion from 1.3 million tons of beans and pulses exports last year.
Myanmar has exported 72 percent its beans and pulses production to India and the remaining 28 percent to Indonesia, Pakistan, and Malaysia, Singapore, Japan, China and Mideast countries.
With an annual supply of 1.5 million tonnes of pulses to India, Myanmar accounts for almost 50 per cent of the country's annual pulses imports.
The Country is in the middle of pulses harvest season and if the quake affects it even mildly it might create problems for the Junta. Myanmar also exports about 500,000 tonnes annually.
Thailand is the world’s leading rice exporter and what impact the quake may hold for the production and exports of the commodity there is remained to be seen.
Any slight impact might hike global rice price and may evoke food crisis, analysts said. However, any such threats out of the quake seems far away, they added.

(Source: http://www.commodityonline.com/news/Myanmar-quake-may-hit-pulses-rice-37573-3-1.html)