CNI News
23 August 2023
When India has limited its rice export, foreign countries may increase their order of Myanmar rice, which rice exporters are reviewing.
Moreover, because the rice prices of Thailand and Vietnam have risen, buyers are turning to Myanmar, according to the Myanmar Rice Federation.
Currently, Myanmar rice is being exported to the Philippine and African countries are increasingly buying Myanmar rice, said an official from Myanmar Rice Traders Association to CNI News.
"A lot of rice is bought both locally and by foreign countries. A lot of rice is bought because India has limited its rice export as well. Rice is being exported to the Philippines. African countries buy Myanmar rice regularly. Rice here can be sold more than before." he said.
A farmer plowing the field
India, which is the largest exporter of rice in the world, has limited its rice export, aiming to prevent domestic rice prices from rising before its general election that will be held early next year.
If the purchase of Myanmar rice increased due to India's limitation of its rice export, it would be beneficial to rice farmers, said U Thein Aung, chairman of the Farmers Development Association to CNI News.
" India's rice export is not less. But as it has limited its rice export, if a lot of rice here can be sold, it can be beneficial to the farmers here. The farmers can produce more than the current amount. Because the production cost is high, they can't produce to the full. If they can make a profit from rice, they can produce another one third. When some other sanctions are imposed on Myanmar, if the number of countries which buys Myanmar rice and crops has increased, it is a good news." he said.
A rice mill
Although international rice prices are going up, the government will reduce the rice export licenses next month so as not to make domestic rice prices rise, said the Myanmar Rice Federation.
Buyers of rice for export buy very little at the Bayint Naung commodity depot and traders go to the areas where rice is produced and buy rice directly.
So, rice entering the commodity depot has been less, said U Than Oo, secretary of the Bayint Naung Rice Commodity Depot to CNI News.
" It is said that rice export licenses will be reduced so as not to make the domestic rice prices rise. But exporters are still buying rice. But the amount has been less. They don't buy rice as much as they bought before. But they have to buy rice. They go to the areas where rice is produced and buy rice directly. Rice doesn't enter the commodity depot so much." he said.
Current rice prices are trending upwards and if the government reduce the rice export licenses, domestic rice prices will decrease.
According the Myanmar Rice Federation, the government will suspend issuance of rice export license in September. But it has not yet been confirmed because it is being inspected whether it is consistent with the policies from the ministry or not reportedly.
