Myanmar's most costly import was fuel, which accounted for some US$376 million in expenditure.

EXPORTS of natural gas again increased trade volumes by about 10 percent over the 2007-08 financial year, even though imports declined overall, Ministry of Commerce statistics show.

The trade volume for the year stood at US$8.860 billion, up 8pc from the $8.1694 recorded the previous year. However, it was well short of the target figure of $13 billion.

And natural gas exports led the growth.

“The export of Myanmar’s energy – especially natural gas – has been rapidly increasing year-by-year and is the major factor that’s helping to increase the country’s trade volume,” said Dr Maung Aung, a senior researcher and economist at the Economic Studies and Research Institute (ESRI).

Exports increased by about 12pc – from $5.2326 billion in the 2006-07 year, to $6.043 billion in 2007-08.

Natural gas sales accounted for 42pc of total exports, an increase of 13pc from the $2.039 billion recorded during the 2006-07 fiscal year. In 2007-08 natural gas exports earned $2.590 billion. Since the Yetagun gasfield began pumping gas to Thailand in 2003, the country’s biggest export has been natural gas.

And this remained so in 2007-08, with agricultural products coming in a distant second – earning $1.140 billion; gems and jewellery – despite international sanctions – earned $647 million; timber and forestry products raised $578 million; and fisheries exports contributed a further $366 million to state coffers.
On the import side of the equation, fuel was the nation’s largest import – sucking some $376 million from the economy. It was followed by textile imports that cost $278 million; machinery and spare parts cost $253 million; and automotive and vehicle purchases amounted to $209 million, the statistics showed.

Dr Maung Aung said that the food security – a hotly debated international issue – has actually boosted the finances of net food exporters by inflating the prices of agricultural products, like rice.

“In the previous financial year, Myanmar’s food exports – excluding beans and pulses – earned higher prices than they had earned in the past,” he said.

These higher prices were largely to blame for the increased earnings showed by the sector, he said.

Also contributing to the rise was the government’s condoning of rice exports, he added.

Rice increased as much as 300pc in price during the 2007-08 year.

“The price of rice (25pc broken) increased from $300 a tonne to $800, while the price of rice (0pc broken) increased from $400 to $1000, Dr Maung Aung told The Myanmar Times.

However, beans and pulses exports actually declined compared to 2006-07, said a Myanmar Beans and Pulses Association official.

Border trade accounted for 14pc of the total trade volume, while normal trade – conducted through ports and airports – contributed another 80pc.

In the 2007-08 financial year, Myanmar enjoyed a trade surplus of $3.225 billion, the Ministry of Commerce statistics show.