Long grain rice of 90-day yield is currently priced at K19,000 per bag in the domestic market, a decline of K7,000 compared with a year ago, according to rice depots.
“Last year, the price of 90-day rice had went up a high of K26,000 per bag, but this year, it is fetching around K18,000-19,000 per bag,” said U Aung Than Oo, the chair of the Myanmar Rice and Paddy Traders Association.
“The price of 90-day rice is not that low. It is stable at K18,500-19,000 per bag. Compared with last year, the price is lower this year, but the market is witnessing regular buying,” said U Aung Than Oo.
Last month, the Myanmar Rice Federation announced it would purchase long grain rice with 90-day yield, which had no demand in the market, at a basic price of K19,500 per bag from 8 April.
At present, 90-day rice is cultivated in the Ayeyawady and Bago regions. Rice from the Ayeyawady Region has been supplied to the Wadan rice depot, according to the depot.
“The basic rate of 90-day rice will ensure growers do not face losses. They will just make a lower profit compared with the previous year,” according to rice traders.
“Long grain rice of 90-day yield is primarily meant for domestic consumption, and it is also exported to China. However, rice has piled up in the domestic market due to lack of demand from China,” said U Zaw Khaing, joint secretary, Wadan rice depot.
“At present, rice cannot flow out of the Muse border gate to China. We have only the Yangon market to rely on,” said U Zaw Khaing.
Myanmar exported 2.3 million tons of rice to foreign trade partners between April, 2018 and March, 2019. “Due to a drastic plunge in rice exports through the border, about 2 million tons of rice has been stockpiled in the market,” said U Aung Than Oo, the chair of the Myanmar Rice and Paddy Traders Association.
Myanmar exports rice through maritime trade and border gates. Rice trade to China through the Sino-Myanmar border trade channels has been halted as China has been cracking down on entry of illegal goods since October, 2018. This has led to a steep drop in rice exports to China.
Myanmar shipped 3.68 million tons of rice to foreign
countries in the 2017-2018 fiscal year.
By Nyein Nyein (Translated by Ei Myat Mon)