Many Burmese traders stop work due to falling exchange rate

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Half of the 50 Burmese traders operating on the No-2, Indo-Burma border trade road have stopped work due to the falling exchange rate between the Kyat and the Indian Rupee.

Most Burmese traders deal in cosmetics and consumer goods from Shweli, near the Sino-Burma border and Mandalay, second capital of Burma selling in Mizoram and other northeast states of India. The money earned is exchanged on the Indo-Burma trade road.

“The exchange rate came down between 16 to 15.30 Kyats for a rupee (Indian currency) the day before, and then yesterday, it was down to 15.20 Kyats. So, we with small capital, stopped work,” said a woman trader from Mizoram.

At the same time, around 100 people working on commission with Burmese goods also had to stop work.

“We can earn around Rs. 400 to 500 per day because we can sell all the goods. But now, it is very difficult to get even Rs. 300 to 400 because we cannot supply all the goods in demand to the general store owners,” said a goods commissioner from Aizawl, Mizoram.

The goods are sold on a monthly pay system and selling or buying systems to general store owners in Mizoram, so, and the rotation rate is one in three months for Burmese goods, said a trader.

“Now, the exchange rate is only around 15 Kyats for a rupee, so, we cannot earn a profit but, we have to supply our goods to our clients to be able to trade regularly in the future. So, we are trading on very small profits because our debts remain with our general store owners” said a trader.

The selling of goods on commission has been banned by the Mizoram Merchant Association (MIMA) to prevent robberies and step up regional security in the state on August 2011, but the commission work system is still on in Mizoram. – Khonumthung News

 

 

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