Myanmar: Agriculture & Excise Law Update 2026

At a Glance: The National Defence and Security Council enacted three new laws on 7 March 2026, touching the fertilizer sector, the seed sector, and, most substantially, the entire alcohol industry. The Amendment to the Fertilizer Law (Law No. 15/2026), the Amendment to the Seed Law (Law No. 14/2026), and the Excise Law (Law No. 13/2026) all carry immediate practical consequences. This alert summarizes what has changed, who needs to take notes, and what steps to take now.

1. Amendment to the Fertilizer Law (Law No. 15/2026)

a) Key Changes

Two targeted but significant changes have been made:

1. Ministry rename. All references to “the Ministry of Agriculture and Irrigation” in the Fertilizer Law are replaced with “the Ministry of Agriculture, Livestock and Irrigation.”
2. Higher penalties. Fines under the existing offence provisions have been substantially increased:

Provision	Previous Fine	New Fine	Increase
Section 36 – Unauthorized fertilizer production, import/export, handling, or sale of fake or toxic fertilizer	Up to K 1,000,000	Up to K 3,000,000	3× (tripled)
Section 37 – Use of fertilizer for non-agricultural purposes	Up to K 500,000	Up to K 1,500,000	3× (tripled)

b) Who Is Affected

All businesses involved in the import, export, production, distribution, and sale of fertilizers in Myanmar, including manufacturers, traders, and distributors, must ensure their compliance programs reflect the new penalty levels. Any correspondence or documentation referencing the former ministry name should be updated accordingly.

c) Action Items

Priority actions for fertilizer sector clients:

• Update internal compliance documents and contracts to reflect the new ministry name.
• Review current practices under Sections 36 and 37, as exposure to fines has tripled overnight.
• No express transitional period or deadline is stated in the amendment; treat compliance as immediate.

2. Amendment to the Seed Law (Law No. 14/2026)

a) Key Changes

Mirroring the Fertilizer Law amendment, two parallel changes are introduced:

1. Ministry rename. All references to “the Ministry of Agriculture and Irrigation” in the Seed Law are replaced with “the Ministry of Agriculture, Livestock and Irrigation.”
2. Higher penalties. The fine threshold of K 1,000,000 referenced in Sections 28 and 29 of the Seed Law is replaced with K 3,000,000, respectively.

Provision	Previous Fine	New Fine	Increase
Section 28 – Unregistered plant variety production, unlicensed seed business, or non-compliant seed distribution.	Up to K 1,000,000	Up to K 3,000,000	3× (tripled)
Section 29 – Unregistered Seed Testing Laboratory.	Up to K 1,000,000	Up to K 3,000,000	3× (tripled)

b) Who Is Affected

All businesses involved in the production, sale, import, and export of seeds in Myanmar, including seed companies, agrochemical distributors carrying seeds, and licensed seed merchants.

c) Action Items

Priority actions for seed sector clients:

• Update all contracts and regulatory filings referencing the old ministry name.
• Re-assess compliance risk under Sections 28 and 29 in light of the tripled fine ceiling.
• As with the Fertilizer amendment, no grace period is provided — act immediately.

3. Excise Law (Law No. 13/2026)

a) Key Changes & Purpose

This is the most wide-ranging of the three laws. It introduces a comprehensive new legislative framework governing Myanmar’s entire alcohol and excisable substances sector.

The law’s stated objectives include:

• Ensuring systematic public consumption of alcohol and excisable substances.
• Supervising and ensuring that the State receives full applicable excise taxes.
• Reducing alcohol consumption habits and ensuring that the production, distribution, and sale of quality alcohol cause minimal social and health harm.
• Minimizing environmental and social impacts arising from the production, storage, distribution, and sale of alcohol.

Key defined terms (essential for understanding the law’s scope):

Term	Definition
Excise	Alcoholic liquor and excisable articles.
Alcoholic liquor	Any liquid containing more than 0.5% ethyl alcohol, including beer, wine, toddy sap, and fermented liquor, but not denatured alcohol.
Country liquor	Strong alcohol domestically produced with a still or at a factory, or alcohol processed to make it suitable for consumption.
Foreign liquor	Liquor imported from abroad or imported and bottled domestically, including locally produced liquor under foreign trademarks or brand licences.
International-standard domestically produced liquor	Liquor produced in Myanmar using specified methods and raw materials, including beer, wine, whisky, brandy, gin, rum, vodka, and spirits.
Denatured alcohol	Alcohol processed for industrial or pharmaceutical use, not suitable for drinking and excluded from the law’s scope.
Excise business	Any business involving producing, value-adding, bottling, storing, distributing, selling, transporting, importing, or exporting alcohol or excisable substances.

Governance: A new Excise Policy Committee of up to 15 members is to be formed, chaired by the Union Minister of Home Affairs, with the Director-General of the General Administration Department as secretary. The committee must review excise policies at least once every five years.

b) Licence Categories

The Department will issue excise licences covering the following categories of business activity:

Licence Category	Activity Covered
Production	Producing alcohol by any method; redistilling; ageing in barrels; purifying, flavoring, or coloring.
Value-Added Production	Further processing of alcohol or excisable substances using advanced technology to create internationally standardized products.
Bottling	Transferring alcohol into bottles, cans, jars, or other containers, including labelling.
Distribution	Wholesale of alcohol to licence holders in quantities exceeding the Ministry-specified retail threshold.
Sales	Retail transfer of alcohol or excisable substances to a buyer.
Other designated businesses	Additional categories designated by the Department through notification.

Who can apply for a licence? Applications may be made by Myanmar citizens (including associate or naturalized citizens), Myanmar-registered companies with no more than 49% foreign shareholding, and wholly Myanmar-owned business entities or joint ventures formed by Myanmar citizens.

Licence validity: Regardless of the date of issue, all excise licences are only valid until the end of the relevant financial year.

Quota system: The Department may designate certain categories of excise business as subject to a quota, with licences issued by the district excise officer in accordance with prescribed regulations.

c) Who Is Affected

Practically every participant in Myanmar’s alcohol industry is affected: producers, brewers, vintners, bottlers, importers, exporters, distributors, and retailers. Foreign investors holding or planning to hold stakes in Myanmar alcohol businesses must note the 49% foreign shareholding cap on eligible licence applicants.

d) Action Items / Deadlines

Priority actions for excise sector clients:

• Await the Presidential notification that brings the Excise Law into force — the law takes effect on the date that the President issues the relevant notification.
• Identify which licence category or categories apply to your operations and prepare application materials.
• Applications must be made to the district excise officer in accordance with prescribed regulations. Any person wishing to operate an excise business must apply for the relevant licence from the district excise officer.
• Licence renewals require a separate application to the township excise officer. Any holder of an excise licence who wishes to renew must submit an application to the township excise officer in accordance with the prescribed regulations.
• Review corporate ownership structures to confirm compliance with the 49% foreign shareholding ceiling.
• Monitor Department notifications for quota designations and additional licence categories.
• Note that regional/state governments and the Nay Pyi Taw Council may impose time restrictions on alcohol sales and regulate alcohol consumption within their territories.

The information provided here is for information purposes only and is not intended to constitute legal advice. Legal advice should be obtained from qualified legal counsel for all specific situations.

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