Pajau Media
March 27, 2025
Due to the ongoing closure of China-Myanmar border gates in Kachin State, charcoal producers and traders in Man Win Gyi are facing severe losses, with large stocks of unsold charcoal piling up, according to local sources.
"Some displaced people and locals used to make a small income by producing charcoal in the forests and mountains. But now, no one is buying it, and there's no other way to earn money. We are extremely worried and struggling," said a charcoal trader.
Residents who rely on charcoal production for their livelihood are experiencing financial hardships as they can no longer export or sell their goods to China. Moreover, demand within the local market has dwindled, forcing many to halt their operations.
Previously, traders would purchase charcoal from producers and export it to China. However, since the borders gates remain closed, traders have stopped buying charcoal, leading to production suspensions.
Before the closures, charcoal was sold for 2,000 yuan per ton (equivalent to 1,200,000 MMK, based on an exchange rate of 100 yuan = 60,000 MMK). However, in early 2025, the price dropped to 1,700 yuan per ton, and by March, it plummeted further to 1,500 yuan per ton. With no buyers, many traders have been forced to sell at a loss.
Since March 20, China has completely stopped purchasing charcoal, causing some traders to accumulate tens of thousands of tons of unsold stock, leading to heavy financial losses.
Traders are now storing the unsold charcoal either within their own land or by renting storage spaces, while pre-packaged charcoal bags are deteriorating due to prolonged storage.
Similarly, local farmers growing regional crops are also struggling, as the border closures and sharp price drops have prevented them from selling their harvests, leading to further economic difficulties.
Reported by: Zaw Mai
Comentários