The price of rice exported to China through the Muse trade channel has been on the decline, unlike the domestic rice price, which remains stable said U Kyaw Min, the secretary of Mandalay Rice Depot.
Rice is exported to China mostly through the Muse and Lweje border trade camps, but the rice trade is declining because of enforced confiscation of Myanmar rice by Chinese authorities. Thus Chinese merchants who wish to purchase rice from Myanmar are forced to do so illegally. The lower demand from China has resulted in the decreased rice price, U Kyaw Min added.
If the trade of rice from Myanmar to China is legalised, there are examination procedures for imported rice to China. A permit from the Administration of Quality Supervision, Inspection and Quarantine (AQSIQ) is also required. Some local varieties of rice grown in Myanmar are not able to pass this process.
The domestic rice price is still stable at a high price. The domestic rice price has risen due to the torrential rain in Sagaing, Magwe, Ayeyawady and Bago regions.
The rice export market is dependent on demand from China. The export price of rice has slumped by 5 yuans per bag. The domestic rice price is likely to decline at the harvest time of the rain crops.