CNI News

22 October 2024

It was necessary to designate the profitable reference price of paddy more than agricultural cost, said farmers.

The steering organization for the promotion of farmers' right and interests has designated the reference price of paddy as 950,000 kyats per 100 baskets.

The agricultural cost for the rainfed paddy was 700,000 to 1,000,000 kyats per acre and the current reference price was not beneficial to farmers, former chairman of the Farmers Development Association, U Thein Aung told CNI News.

" The basic reference price means the guarantee foundation market which is in every country and the price is 30 percent more than the agricultural cost. The yield of paddy this year is 70 baskets per acre on average. In comparison with the reference price designated, a farmer could earn around 700,000 kyats per acre, but the agricultural cost is 700,000 to 100,000 kyats per acre. In fact, if the reference price was designated 30 percent more than the cultural cost, it would be 1,300,000 kyats." he said.

While paddy is being threshed

However, the price of paddy is 1,700,000 to 1,900,000 kyats per 100 baskets in the market. When the paddy appeared abundantly in the previous years, calculating on the reference price, as the paddy was bought, which hurt farmers.

When the agricultural cost has risen, the reference price should not be about half lower than the market price, U Kyi Lwin, a farmer, told CNI News.

" The yield of rainfed paddy this year is produced only half of the previous years. So, you can't buy the paddy, reducing the reasonable price. In the previous years, when the paddy appeared, for example, the reference price was designated 600,000 kyats per 100 baskets. In practice, there was no one who bought the paddy at that price. But it's necessary for the government to clearly issue an order." he said.

The currently designated reference price of paddy is for the rainfed paddy of 2024 and for the summer paddy of 2025 and at present, rainfed paddy is being reaped and bought at 1,700,000 to 1,900,000 kyats per 100 baskets.