Myanmar rice exports to resume in May

Rice exports will resume in May at regular volumes of 150,000 tonnes for the month of May, the Myanmar Rice Federation (MFR) announced on April 28.

100,000 tonnes will shipped overseas while the remaining 50,000 tonnes will be traded at the border.

More than 2 million tonnes of rice will be allocated for export in the current fiscal year, according to government estimates, of which 10 percent will be retained as food reserves for Myanmar, the MRF said.

112 companies will handle the maritime exports while some 200 companies will be involved in border trade for next month.

About 60 percent of the of 2 million tonnes will consist of equal allocations from all the companies. The remaining volumes will consist of additional allocations from companies involved in contract farming and which made investments in mills or warehouses over the last three years.

In the meantime, MRF is in negotiations with some ASEAN countries and for government to government export arrangements.

“The country has a rice surplus of between 2.5 million and 3 million tonnes and these are exported every year. The country exported about 2.5 million tonnes last year. This year’s exports will be net of volumes the government has taken for rice reserves in view of the COVID-19 situation,” said U Soe Thun, executive member of the MRF.

“We have to sell 100 tonnes to the government every time we export 1,000 tonnes. The price for the 10pc sold to the government is lower than the market price, making the permit price dearer. Now, there is also a limitation on granting export licenses,” said U Sai Kyaw, a rice trader from Mandalay.

The Ministry of Commerce this month temporarily suspended the issuance of rice export permits as “a transition measure towards a better system,” officials said.