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November 14, 2018

Rice market cool due to lower demand from China

Farmers harvest rice in Kangyidauk in Ayeyawady delta. Photo: Phoe Khwar
Farmers harvest rice in Kangyidauk in Ayeyawady delta. Photo: Phoe Khwar

Rice exports through the Muse border have been cool because of the low demand from China.
“The rice market is cool because of the low demand from China, as well as the Muse conflict. High quantities of rice have been entering the Muse market, but the demand has been low. Therefore, we are selling rice at a lower price. The price of rice has declined to Ks2,000 per bag,” said U Than Oo, secretary of Bayintnaung rice depot.
With the price of rice declining in the Muse market, traders have reduced their rice purchasing volumes. Rice from the Bago Region is still selling at the current price, but rice from the Ayeyawady Region, which has stopped producing rice, is not selling in the market. Therefore, the volumes of rice entering the Muse market from the Ayeyawady Region are low.
“Although lower volumes are entering the market, the price is not on a downward spiral. I think the prices of rice and broken rice are not likely to decline,” he added. Moreover, exporters do not need to buy rice urgently because rice exports via the sea route have been deferred to July instead of June. Therefore, the price of rice in the market is stable.
The price of 25-mark rice is Ks19,000 per bag, while the price of 5-mark rice is Ks21,000 per bag.
Some 30,000 rice bags entered the Muse rice depot on 21 May, but only 25,000 were sold. The situation is better now compared with the last few days, said U Min Thein, deputy chairman of Muse rice depot.
The price of 25-mark rice is likely to increase if the summer paddy runs into difficulties in the monsoon. Also, the Bago Region’s northern part will stop producing rice after two weeks. Therefore, the price of 25-mark rice is likely to increase in July, said U Than Oo. Earlier, the price of exported rice increased after the water festival period but the rice market is still calm this month.

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