CNI News
22 July 2022
As Shwebo rice was in short supply in the domestic market, the prices of the rice variety surged, according to rice merchants.
The price of a 24-pyi bag of Shwebo rice rose by K 5,000 and the prices were likely to surge further, U Shine Win Latt, the owner of Shwebo Rice Trading at Wartan Road Commodity Exchange, told the CNI.
U Shine Win Latt said, “Rice prices, especially Shwebo rice, have risen. I think paddy was in short supply in Shwebo. As merchants do not have paddy to be milled, prices have surged. As the region mainly supplies rice to Yangon, the prices have soared here. Shwebo rice prices have risen by K 5,000 per bag. The prices are likely to rise further.”
Furthermore, rice supply to Bayint Naung Commodity Exchange dropped recently to only one-third of previous supply volumes, according to the commodity exchange.
The entrance to Shwebo.
As Shwebo rice was in short supply, merchants had to trade other varieties of rice, pushing up their prices, especially those from Ayeyarwady, U Shine Win Latt said.
“There are other varieties of rice like Ayeyarwady rice in the market but their prices have also risen as all commodity prices have risen. Farmers had to buy their inputs at rising prices and incurred more agricultural costs. So, consumers have started to think about mixing Shwebo rice with other varieties for their meals. If Shwebo rice is in short supply they will have to rely on other varieties. It is likely that Shwebo rice will be in short supply at present,” he told the CNI.
Shwebo rice is in short supply in the market since cultivation acreage of monsoon and summer paddy in the area dropped last year and paddy yields decreased.
As farmers in Shwebo were also displaced by regional instabilities while cultivation costs were rising, they were not able to grow as much paddy as before and paddy yields dropped.
Displaced people in Wetlet in Shwebo Township.
Farmers were worried about the shortages of seed paddy in coming years due to decreasing cultivation acreage, a local farmer in Shwebo told the CNI.
“Most farmers cannot grow paddy in our region currently as they are struggling with other problems. Only a few of them have started farming. Majority of them have not started farming as cultivation costs are rising. Farmers have to borrow money from others to invest in their farms as they are struggling with their costs of living. Most of them have not started farming. They are worried about the shortages of seed paddy in the coming years as they cannot grow rice this year. Under current circumstances, they are worried about their uncertain future,” the farmer said.
Residents of Shwebo mainly grow paddy and rice produced in the region and Shwebo rice fetches higher prices than that of other regions and gains the largest market shares in Myanmar.
As total acreage of paddy cultivated in Shwebo has decreased below the regional needs, the region is not likely to supply rice to other regions, according to rice merchants.
