The Ministry of Commerce and Myanmar Rice Federation (MRF) have planned to export 100,000 tonnes of rice through sea trade and 50,000 tonnes through border trade.
They are negotiating with ASEAN and neighbouring countries to sell the rice through government (G to G) plan.
The export quota of 150,000 tonnes is set based on the suggestions made by private and public sectors and the actions of other foreign countries.
The quota is imposed on exports of rice, broken rice and sticky rice. However, there’s no restriction on parboiled rice export.
Regarding rice export quota in May 2020, about 112 companies will ship them through maritime trade, while 200 companies will conduct the trade via borders.
The export volume for each company is proportioned on 60 per cent of the average monthly export volume in the past 30 months. Those companies which have better performance in contract farming, supply chain and value chain, and for the millers and warehouse investors; and those which have the partnership with foreign firms will surely get more shares, as per the federation’s statement.
The exporters can contact the MRF via email [email protected] for further enquires.
The Federation will negotiate with the government concerning the export depending on the situations of the pandemic and local and foreign markets.
It is the harvest time of summer paddy and the federation is making efforts for the growers to get a decent price. Additionally, MRF, its subsidiary organizations and the rice traders are coordinating to have a much fairer price of rice for the consumers during the coronavirus pandemic.
Local market constitutes over 70 per cent of production, whereas some portion of the remaining is sent to the foreign market and some of them are left for rice reserve.
The exporters must sell 10 per cent of total export volume (well-milled and sorted rice), stated in the export declaration as country’s reserved rice.
The reserved rice must be sent to the state’s warehouse. Myanmar Inspection and Testing Service (MITS), the authorized organization of the State, will inspect and verify the quality and quantity.
The Yangon Region government will receive the reserved rice proportioned by sea trade, while some per cent of the border export will be stored at the Consumer Affairs Department in Mandalay Region.
Those exporters who failed to comply with this will get their licences revoked and face legal actions under the Essential Supplies and Services Law. At present, the country has self-sufficiency in local rice market and the rice reserve scheme is meant for emergency foodstuffs distribution.
The MRF is prioritizing domestic market stability and self-sufficiency and working towards these goals by coordinating with government departments and stakeholders in the supply chain, including exporters, traders, depot owners, and millers, according to a press statement issued by the federation on 13 March 2020.
The export will return to normal starting from May 2020. Myanmar intends to export over 2 million tonnes of rice for the current fiscal year 2019-2020, the federation stated.
Additionally, MRF has submitted the government to increase the cultivation loan amount for the coming monsoon season and other necessary points for the rice industry.
The volume of rice and broken rice exported between 1 October and 28 February in the 2019-2020 fiscal year has been estimated at over 1.37 million tonnes, worth $396.29 million, as per the MRF data.
Myanmar shipped 3.6 million tonnes of rice in the 2017-2018 fiscal year, which was a record in rice exports. The export volume plunged to 2.29 million tonnes, worth $691 million, in the 2018-2019FY. – Ko Khant (Translated by Ei Myat Mon)