According to local sources, China and Myanmar are on the edge of striking a new contract under which China will mainly import around 1 million tons of rice from Myanmar next year at about $400 per ton as well as legalize rice imports across northern borders of Myanmar, which are presently considered illegal. The Chinese Leading apparently promised the above to the Myanmar Premier during the 25th ASEAN Summit taking place at Nay Pyi Taw, Myanmar.
The SouthEast Asian nation’s rice segment has been confronting strict difficulties since China had legitimately prohibited rice imports through Myanmar borders in August. Myanmar’s rice exports to China within northern borders weakened to about 25 tons a day from around 3,500 tons and this has strictly obstructed Myanmar’s total rice exports and limited prices.
According to a report by the World Bank in June this year, China has been a chief export market for Myanmar rice for the last couple of years. Myanmar’s rice exports to China (mostly through northern borders) improved almost 125 times since 2011. In 2013 alone, Myanmar exported 747,000 tons of rice to China across the Muse border.
Chinese experts discuss these cross border imports as unlawful as there is no official rice export agreement between China and Myanmar. They have been crabby for a long time that the quantity of prohibited rice exports from Myanmar has been snowballing and has voiced apprehensions that Myanmar rice is not obeying to China’s plant confinement rules. The Chinese government had also just insisted a formal sanitary and phytosanitary agreement on rice criterions with Myanmar.
The agreement would also emphasis in upsurge general trade quantity between China and Myanmar. China has allegedly assured to sign more than 20 trade agreements worth over $8 billion with Myanmar soon. Trade deals also comprise a $200 million microcredit loan for Myanmar to fight poverty. China also assured to offer scholarship to around Myanmar children and permit them to study in China.
Myanmar transferred record 1.33 million tons of rice in 201213, but exports declined to 1 million tons in
MY 201314. The government is intense on growing rice exports to around 4 million tons by 2020 and consequently has placed rice at the chief of its National
Export Policy for 20142019 and is forecasting to discover fresher markets for its rice exports.