The Indian and Chnese businessman has signed a deal with the Myanamar farmers representatives for cultivating the rice on Myanmar land.
Under this deal the China is suppose to provide fertilizer and other inputs to Myanmar farmers for rice cultivation.The entire cultivation will be procured by the Chinese businessman at the local prices of the Myanmar.
The Myanmar is looking for the foreign investment in its rice sector to help the country regain its status as a prominent rice exporter
Currently the country has below potential partly rice production due to fluctuating prices and constant farmer debts.
The country has a golden hen named The Irrawaddy Delta in Myanmar which is larger than Vietnam’s Mekong Delta, so foreign investment in the region could boost Myanmar’s rice production and exports significantly.
According to the data from USDA, Myanmar produces around 11 million tons, against a consumption of around 10 million tons but some local sources revels that its production is in range of around 13-14 million tons.
In the FY 2012-13 (April – March), Myanmar exported around 2.1 million tons of rice, up about 40% from the targeted 1.5 million tons, and almost three times the 750,000 tons exported in FY 2011-12.
Myanmar rice exports have increased mainly due to low prices. Neighboring China is a major buyer of Myanmar rice. Recently, the EU removed import tariffs on rice from Myanmar under the preferential trade scheme for least developed countries.