CNI News
11 November 2023

While implementing an export-based reserve rice storage system, companies that export rice have to sell a bag of rice for reserve rice at the price designated, Myanmar Rice Federation (MRF) has stated.

A bag of rice was collected if a ton of rice was exported in the previous years, At present, not only it is the time when the rice appears plentifully, there also is no domestic demand for rice.

So, one bag per three tons is being bought from the companies exporting rice abroad in order to export more, U Nay Lin Zin, general secretary of the Myanmar Rice Millers Association, told CNI News.

" In the past we collected one bag per ton for reserve rice. But now one bag per three tons is collected because not only now is the export season, the rice also appears abundantly. The reason why we have bought reserve rice is that we have prepared to be able to sell rice to basic workers, the people and government employees at a lower price." he said.

Companies that export rice must deliver 25 percent of reserve rice to designated storage facilities within one week and the remaining 75 percent will be collected when necessary reportedly.

Companies must sell 25 percent of reserve rice that is consistent with designated qualification and standard at 62,000 kyats per bag in November, said in the statement. Myanmar Rice Federation collects reserve rice to help those who find it difficult to buy rice when the price is high due to natural disaster, an official for the Myanmar Rice and Paddy Association, told CNI News.

" MRF has collected reserve rice. It sold the reserve rice to the people at 2,500 kyats per pyi (4.375 pound) when the rice prices were going up a few months ago. MRF collected one bag when one ton was exported in the past. The price was negotiated with the market price. We have collected reserve rice in order to sell the people and the shops when the prices go up." he said.
If more rice is exported, farmers can sell their rice at a higher price. However, if reserve rice storage is reduced and more rice is exported, it probably will be difficult to control the rice market when the domestic rice prices go up due to a certain reason, those working on farmers' affairs said.

Necessary reserve rice should be bought in one go in advance without exercising an export-based reserve rice storage system, pointed out farmers and traders.