Rice Prices: Weak Domestic, Export Demand Slump Prices
Rice prices in the market have fallen due to weak demand raising risks for both farmers and traders, according to traders.
According to local farmers, the market price for 100 baskets of stored Manaw Thukha paddy was at over 800,000 kyat in September, bet fell shortly to around 600,000 kyat.
Traders added that demand from China, the main destination for most of Myanmar’s milled rice exports crumbled following China’s attempt to clamp down on illegal cross-border trade.
Joint Secretary General , Myanmar Rice Federation , Dr. Soe Tun : As the monsoon harvest approaches, we are worried. If Chinese demand continued to fall, the prices would be in an even worse shape in December. Moreover, the farmers and traders will face serious losses if the prices continue like this.
Traders add Myanmar needs government assistance to expand their export market, as higher production costs and low quality of rice remain a problem.
Joint Secretary General , Myanmar Rice Federation , Dr. Soe Tun : We need the government to step in with purchase guarantees. We need government to government agreement to penetrate new markets instead of relying on a single market, which is China. As we got GSP opportunity from EU market, I think we need to extend it more there. Our rice strains have higher production prices but lower in quality than others in the market; it’s not easy to expand to markets by ourselves.
Traders predict Myanmar to export about 1 million tons of rice this year—300,000 tons short than the same period last year.
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