CNI News
27 July 2022
Contrary to recent news reports, rice millers in Ayeyarwady Region denied receiving advance payments from the Tatmadaw to sell their rice.
Hinthada District Rice Millers’ Association Chairman U Soe Myint told the CNI that they had not received rice orders or advance payments from the Tatmadaw and they did not have much monsoon paddy left in the district.
“We haven’t received any rice orders from the Tatmadaw. If the Tatmadaw purchases rice, it will place an order with Myanmar Rice Millers’ Association, which will inform regional associations of the order. We haven’t heard anything. The Tatmadaw didn't purchase rice from our district and we don’t usually have much monsoon paddy left by July or August. Some traders may have stored a little like the Sinthukha variety, whose prices have risen to about K 1 million per 100 baskets recently,” he said.
It was reported that the Tatmadaw had purchased all paddy in Ayeyawady Region by making advance payments and did not allow farmers and traders to sell their paddy to others.
Chairman U Thein Aung of the Association for Development of Farmers’ Livelihood told the CNI that the Tatmadaw used to purchase rice from Ayeyarwady Region in previous years but millers were allowed to decide whether they would sell their rice to the Tatmadaw or not and the Tatmadaw bought as much as it needed.
“The Tatmadaw purchased rice from Ayeyawady Region for its rations almost every year. It made advance payments to millers who wanted to sell rice to it. The Tatmadaw placed orders for certain amounts of rice from Ayeyarwady Region and made advance payments at fixed floor prices to millers who wanted to sell rice to it. That was its normal purchasing practice in previous years,” he explained.
Farmers incurred high cultivation costs this year due to rising prices of fertilizers and fuel oil.
In Ayeyarwady Region, it cost about K 450,000 to cultivate one acre of paddy, which yielded about 70 baskets.
Therefore, the basic reference price of paddy should be set at an amount that is profitable for farmers, U Thein Aung added.
“The basic floor price for paddy should be set at least at K 750,000 per 100 baskets so that farmers do not suffer losses. If the price is set at K 900,000 per 100 baskets, farmers will be able to enjoy profits. The floor price at K 750,000 is just enough to cover their costs,” he told the CNI.
As dollar exchange rates are rising against Kyat, traders are likely to offer high prices for paddy this year, according to rice traders and millers.
Ayeyarwady Region has the largest paddy cultivating acreage with highest yields in Myanmar.
