CNI News

6 October 2023

Myanmar agriculture needs to change all aspects including policy, technology, machines, ability to manufacture finished products and to find buyers so that it will be able to keep abreast of its neighboring countries, said agricultural experts to CNI News. 

Although Myanmar has land, water and seeds necessary for agriculture, its agricultural sector has not developed as much as its neighboring countries, pointed out agricultural experts.

When farmers do business of agriculture, they mainly need buyers and if there was no buyer, they could get into debt, said Ko Zaw Min Naing, an agricultural and economic advisor to CNI News.

" Fortunately at present, Thailand is buying Myanmar corn. They are buying officially or from the black market according to the necessity of their country. Corn is grown on more acres. But if Thailand suddenly stop buying Myanmar corn, where shall we export the corn to? We need marketing. And then we need technology. After that, the production will obviously increase. It is not difficult for us to sell if we firmly have more than one market. Number one is market and No.2 is technology." he said.

Although Myanmar's neighboring countries are using technologies and machines in agriculture, Myanmar farmers have not been able to use them widely. 

While seeing onions

So, it is necessary to support the farmers technologically. After organizations are formed for farmers, if the government issued long-term loans at low interest rates, Myanmar agriculture can improve to an extent within three to five years, suggested agricultural experts.

There should be a minimum market guarantee for farmers, said U Thein Aung, chairman of the Farmers Development Association to CNI News. 

" There isn't any guarantee for farmers how much they will get at least for the the crops they produce. Although relevant organization has designated the basic reference price, in practice it's necessary to have buyers at that price. When the rice paddy appears, their rice paddy is bought at a lower price than it is worth. The price goes up in June, July, August, September, October when the farmers have no rice paddy and when the traders and rice mill owners have the rice paddy. Farmers don't enjoy the benefit." he said.

While Myanmar farmers are ploughing

Moreover, in stead of 65 percent of export earnings, only 50 percent are paid by kyat. This policy cause a barrier for the development of a sector and it should be reformed, pointed out experts.

Thailand buys Myanmar agricultural products as raw materials and manufactures finished products and export them to other countries from which it earns foreign currency. So, Myanmar can manufacture finished products from its raw materials, it can develop more, said Ko Zaw Min Naing, an agricultural and economic advisor to CNI News.

" If you sell something as a raw material, you cannot earn as much as a finished product. Almost all the crops from Myanmar are going abroad as raw materials. So, there is no market guarantee. We cannot sell at a reasonable price. So, the lives of farmers cannot improve. So, we should manufacture finished products. For example, rubber is produced here up to RSS 1 size at the highest level. In fact, it hasn't been a finished product. If we can upgrade to the next stage, we can export it to the country that needs directly. That's why we need technology, infrastructure and capital investment. And then, our foreign income will increase." said Ko Zaw Min Naing.

Because the current political situation has not been stable, it is not easy to reform the agricultural sector from all sides. So, the policy that can be reformed should be reformed first, said agricultural experts.