CNI News
27 Feb 2023
As rice exporters from border trade have stopped buying rice and broken rice, the prices of them have dropped, according to the Bayintnaung Commodity Exchange.
Rice exporters from border trade are required to exchange 65 percent of their earnings at the rate set by the Central Bank of Myanmar, they have stopped buying rice while their counterparts from mercantile trade follow suit as rice exports are not profitable for them due to high domestic prices.
As a result, prices of export rice and broken rice have fallen in the domestic market, Secretary U Than Oo of the Bayintnaung Rice Commodity Exchange told the CNI.
Loading rice bags.
He said, "Summer paddy is going to be harvested soon and the market has cooled down. Exporters from border trade are required to exchange 65 percent of their earnings at the rate set by the CBM. It is not profitable for them and thus they have stopped buying rice. The price of broken rice has fallen by MMK 1,000 per bag while that of rice has decreased by MMK 2,000 per bag. Merchants who transport rice to Mandalay, Muse and Myawady have stopped buying rice. Merchants from normal trade have long stopped buying rice because it is nor profitable for them. Prices are likely to fall further.
If the volume of rice exports can be reduced below the level in previous months, domestic rice prices are likely to fall, according to rice merchants.
As paddy yields have dropped at present, negotiations are being held to decide the amount of rice for local self-sufficiency and exports, an official from the Myanmar Rice Merchants Association told the CNI.
A rice shop.
He said, "To export 2 million tons of rice in this fiscal year, we need to export 300,000 tons of rice before the end of March. We planned to export 150,000 tons of rice in February and another 150,000 of rice in March. However, we were not able to export 150,000 tons of rice in February because it is not profitable for exporters at current rice prices. Rice exports have dropped during recent months. However, we exported a regular volume of rice during previous months. Paddy yields have dropped this year in Sagaing and Ayeyarwady regions. So, we are holding negotiations to decide how much rice we should export to maintain local rice sufficiency.
At present, the prices of Emata variety 25 marks rice, which is mainly exported, have dropped to MMK 53,000 per bag and its prices are likely to fall further when summer paddy is harvested, according to rice merchants.
Myanmar has planned to export 2 million tons of rice and still needs to export 300,000 tons of rice to meet the target. So, plans are underway to export 150,000 tons of rice in February and another 150,000 tons of rice in March,
according to the Myanmar Rice Federation.
