CNI News
31 Mar 2023
Due to suspension of new licenses to export rice through the border trade in a bid to stabilize domestic rice prices, the exports of rice and broken rice at the China-Myanmar border have almost ground to a halt, according to rice merchants in Muse.
It was reported that new licenses have been suspended and rice exports have been restricted to stabilize domestic rice prices.
As rice exports have been restricted and summer paddy are being harvested, domestic rice prices will fall, Vice Chairman U Min Thein of the Muse Rice Exchange told the CNI.
He said, "There are only a few licenses that have already been issued. Authorities have suspended issuing new licenses since 14th February. However, it was heard that the new licenses will be issued in April. However, merchants have stopped exporting rice to China since it was not profitable for them because of the requirement to sell 65 percent of their export earnings at the CBM rate to banks. So, rice and broken rice exports have almost ground to a halt. Although authorities have not announced that they have restricted rice exports officially, they have restricted it gradually. As summer paddy is going to be harvested, domestic rice prices will fall back to some extent."
Drying paddy under the sun.
As the rice variety mainly exported to other countries is 25-mark emata variety rice, the prices of emata rice will drop but the yields of paw san hmwe variety rice have decreased this year, paw san hmwe rice price will not fall, according to rice merchants.
As domestic rice prices have skyrocketed, it is not profitable for merchants and most of them have stopped exporting rice.
As rice exports have halted and falling rice prices can affect paddy farmers, export licenses are being issued after thorough scrutinization to stabilize the market, Secretary U Than Oo of the Bayintnaung Commodity Exchange told the CNI.
He said, "It has something to do with domestic rice prices. However, if we do not export rice, farmers will suffer losses. It is impossible to ban rice export on the one hand and we cannot allow domestic rice prices to skyrocket on the other hand. As a result, we will have to try to strike a balance. Last month, monsoon paddy stock was low and rice prices skyrocketed forcing merchants to export rice at losses. And it still takes some time to harvest summer paddy and authorities had to restrict issuing licenses. Merchants were not allowed to export rice recklessly. Now, summer paddy is being harvested."
Loading rice bags
Summer paddy has been harvested since the second week of March and as rice supply has entered the Bayintnaung Commodity Exchange, rice prices have fallen.
The prices of rough rice, which is mainly exported to other countries, have dropped from MMK 53,000 per bag previously to MMK 50,000 per bag at present and the prices are likely to fall further because of the moisture of newly harvested rice, according to the commodity exchange.
Although the Myanmar Rice Federation aimed to export 2.1 million tons of rice in the 2023-24 fiscal year, it will have to export only about 150,000 tons of rice a month, according to rice merchants.
