Myanmar. Commerce ministry seeks funding from state to assist farmers

22.11.2016

The move aims to enable farmers to cover their production costs due to a decline in the monsoon paddy prices. The exports of rice have not materialised despite the government allowing entrepreneurs to export rice in November under a three-month plan.

"Exports of paddy is one of the short-term measures to control declining prices.

In addition, the farm produce management committee is to buy paddy from farmers at a fair price. When asking for money from the state's revolving fund we have reached an agreement in principle," said Khin Maung Lwin, assistant permanent secretary of the ministry.

The management committee will start buying rice in Yangon, Ayeyawady and Bago regions.

"Another point is rice prices start going up slightly. But it has yet to reach last year's price. Anyway, farmers will get some profits if the rice price is over Ks400,000 per 100 baskets."

The Myanmar Rice Federation planned to export 300,000 tonnes of rice between November until January, in cooperation with its member companies. It is expected to earn about US$90 million from rice exports.

It could help increase demand, support the revival of rice market and benefit all those engaged in the supply chain system effectively.

The MRF is making efforts to promote the private export sector. And it also plans to increase rice export volumes in the long-term and reduce the trade deficit by accepting export earnings at domestic banks.


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