CNI News
May 13, 2026
Farmers are reportedly benefiting from cheaper market prices following the Ministry of Finance and Revenue's decision to extend a one-month tax exemption on the 2% income tax levied on imports of diesel fuel and fertilizer.
The 2% advance income tax exemption on fertilizer imports, which was initially in effect from April 1 to April 30, has now been extended until May 31. Similarly, the exemptions for customs duties, special goods tax, commercial tax, and the 2% advance income tax on diesel fuel imports have also been extended for an additional month.
Farmers noted that while they had to purchase a barrel of diesel for 3 million kyats (30 lakhs) during the recent harvest season, the current price has dropped to between 1.2 million and 1.5 million kyats (12 to 15 lakhs) per barrel.
U Thein Aung, the former chairman of the Farmers' Development Association, told CNI News that because of these tax exemptions on fuel imports, the price of diesel purchased by farmers has dropped by nearly half.
A fuel station.
"I haven't asked about fertilizer prices yet because I haven't needed to buy any. I’m not sure how they will be sold when the time comes. Currently, farmers aren't using fertilizer for the monsoon paddy yet. As for diesel, the outside market price has dropped to around 1.2 or 1.3 million kyats. Since it previously reached 2.4 to 2.6 million, the price has basically been cut in half compared to the peak. The official government price is likely even lower, around 0.9 million (9 lakhs)."
While the Department of Agriculture and relevant ministries are taking steps to support agricultural production, farmers pointed out that it is crucial to time these interventions for when they are most effective.
U Aye Naing, a paddy farmer from Bogale Township, explained to CNI News that fuel consumption is much higher during the harvest than during the planting season. During planting, fuel usage is only about 2 to 3 gallons per acre.
A farmer plowing a field.
"Prices have indeed fallen. The fuel used for harvesters is now only about 1.5 million kyats per barrel. Previously, premium diesel was around 3 million per barrel. Diesel needs for planting aren't as high as for harvesting. For example, a harvester requires about 5 to 6 barrels of diesel for 100 acres. During the planting season, we use simple single-cylinder engines, so fuel consumption is at most 2 or 3 gallons per acre."
Farmers mentioned that while monsoon paddy growers do not need fertilizer immediately, it is necessary for the government to ensure that prices are not hiked up when the demand arises.
Currently, the Department of Agriculture is reportedly supporting farmers by providing loans, conducting research, and holding discussions to facilitate the planting season.
