As per statement issued by the Commerce Ministry that government of Myanmar is planning to lift the ban on rice exports gradually on each variety after analyzing the local demand for that particular variety Further, it was told that the ban was put in place as a measure to curtail food shortages and price hikes in the country as the floods ravaged the country’s farm lands. In fact, the ban was imposed due to the nationwide flood disaster. However, now the government wishes to maintain its strength in the export market, through watching these factors and coordinating procedures with the concerned organizations.
Emphasizing, the importance on marketing, it was also informed that without disrupting our existing market, especially in Europe, to capitalize on the rising popularity of parboiled rice which has low demand domestically. Further, it has been planned to priorities the types of rice that are in low demand domestically and then gradually lift the ban on each variety. As per report, the domestic prices of a bag of rice in the flood-affected regions reportedly increased about four times to around 80,000 kyat (around $13) from around 20,000 kyat (around $61).
In this matter, it was assured by the Joint Secretary of the Myanmar Rice Federation (MRF) that the ban would be lifted as planned on September 15. Myanmar has reportedly lost about 200,000 tons of rice exports during the last month. The MRF is expecting this year’s rice exports to be lower than last year. It is expected to export about 2 million tons of rice this year, but would not reach that target. Now we expect to export less than 1.5 million tons according to the MRF officials.
It has been seen that Myanmar 5% broken rice export price increased to around $420 per ton from around $405 per ton as compared to last month. Myanmar is a net exporter of rice and its exports have been increasing consistently for the past few years. Myanmar also exported around 1.8 million tons of rice in 2014. The MRF expects a paddy output of around 14 million tons (around 8.96 million tons, basis milled) in 2015.However, the USDA estimates Myanmar to produce 20 million tons of paddy rice (around 12.8 million tons, milled basis) and to export around 2.2 million tons of rice in MY 2015-16 (January – December 2015).