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March 23, 2019

MRF requests MOC to take action against China merchants offering inflated price for paddy

Workers unloading rice bags from the vehicle.  Photo: Phoe Khwar
Workers unloading rice bags from the vehicle.  Photo: Phoe Khwar

Myanmar Rice Federation (MRF) has recently requested the Commerce Ministry to take action against China’s merchants offering inflated price than actual market price for paddy through brokers in Mandalay Region.
“There should not be exorbitant purchase price than reasonable one. This led to the shortage of paddy in rice mills. It is profitable business for farmers as they get high price. But, we need to look forward to long-term benefit”, said Dr Soe Tun, the vice chairman of MRF.
The prevailing price of paddy is about Ks500,000 per 100 baskets whereas Chinese merchants offers up to Ks600,000.
Chinese merchants are buying the paddy instead of rice, which causes Mandalarian rice millers difficult in their business. Therefore, Mandalay Region Rice Millers Association submitted a report to Mandalay Region Chief Minister and MRF, said U Ngwe Aung, the chairperson of this association.
Previously, there was not much purchase of paddy by China. This kind of purchase commenced from last summer crop season. Chinese merchants mostly purchase from Madaya and Singang townships, said U Aung Than Tun from Mandalay Region Rice Millers Association.
“I am glad that the farmers get the good price. By-product such as paddy husk produced by our local mills goes to waste. There is little wastage in their production process and so, they purchase paddy directly from local farmers. Additionally, they can produce other product from paddy husk. As a result of this, they can offer good price”, he continued.
High price offered by Chinese merchants also increases the prices of bran and broken rice. This can also indirectly affect feedstuff processing businesses, said Dr Soe Tun.
There are around 1,100 rice millers in Mandalay Region.

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