For the coming years, Bhutan will sale about 20,000 metric tons of Burmese rice into Northeast India every month.
Independent rice industry The Myanmar Rice Federation (MRF),Burma had meeting with the Indian ambassadors to discuss upon guidelines of the export deal
Chit Khine, chairman of MRF. said that the Indian legation has announced two tenders for the purchase of rice which were costlier hence they approached to Burma.
India recently has also announced bids for the supply of rice to the remote northeastern states Mizoram and Manipur that border Burma. Two Burmese companies were only bidder who offered US$800 per ton. India then approached to the MRF for the supply at half prices.
Chit Khine said that the MRF has agreed upon US$400 per ton which include only the delivery of rice upto the border station, from where the Indian buyers have to arrange themselves the transport to transport the commodities to their local warehouses.
Initial cost of the Burmese sellers is high due to difficult and expensive transport expenditure. And uncertain political issues in the northeast India.
MRF will deliver the rice to the border stations at Tamu in Sagaing Division or Rihkhawdar in China State, as they are not informed about the situations inside India.
India has agreed to pick the commodities once they enter the Indian boundry. And both India and Burma are discussing tax rates, quality control procedures and other logistical hurdles.
Once the discussion on this comes to an end, the Indian government will reopen the tender process and the Burmese firms will reapply.
Dr. Soe Tun, secretary of MRF, told The Irrawaddy that Indian government will committed to purchase 20,000 metric tons of Burmese rice next year.MRF is capable of providing one million tons of rice per year still meeting its domestic demands.
Once the agreement is signed between the two nation, the Burma will start exporting rice to India for the first time.
Chinese officials are working with MRF to establish quality control facilities and regulations, and MRF anticipates that China will soon become a long-term trade partner once they secure a legal contract.