The Myanmar Rice Federation declared on Tuesday that it will purchase paddy at the existing basic rate, which was set last year.
The MRF had fixed the basic price of paddy (low-quality variety) at K500,000 per 100 baskets (one basket is equivalent to 46 pounds) on 8 March, 2018.
Before the basic price was announced for this year, the MRF had urged merchants, millers, agents, private companies, and MRF members to buy paddy at the existing basic rate, if the paddy met the prescribed criteria: 14-per cent moisture content and a fixed percentage of impurities such as sand, weed, and small stones, the federation stated in a recent press release.
In addition, to increase the demand for paddy and promote exports, MRF members and merchants will buy paddy at the floor rate fixed by the MRF, if the market price falls below the basic price, the MRF stated in a press release. The MRF also said it had invited sellers to contact the federation. “The existing basic rate is effective until the MRF gives further notice,” said U Aung Than Oo, vice president, MRF.
“At present, the paddy price is ranging from K520,000-560,000 per 100 baskets. All stakeholders in the supply chain need to make an effort to ensure the price does not plunge below K500,000,” he added.
“If the market price remains above the basic price, merchants will purchase paddy at the prevailing market rate. However, if the market price falls below the basic price, they will buy paddy at the floor rate fixed by the MRF,” the federation stated in a press release announcing the basic price.
The price of the most common variety of paddy usually drops during harvest. The MRF has decided to set the rate to protect the interests of farmers working on a manageable scale.
According to last year’s press release, the MRF fixes the basic price depending on the production cost and benefit to farmers, as well as the expected trend in future domestic and international market prices.
By Nyein Nyein(Translated by Ei Myat Mon)