After the first bid worn a deserted look, the deadline for the second bid which was 27th February has also passed with no bid submitted by the companies aiming to participate in rice exportation process to China, said joint secretary U Soe Tun, The Myanmar Rice Federation.
After the failure of first bid in which the nine companies selected were criticized as inexperienced, the second bid was also launched as china said for more options.
Half a decade ago, China used to be a marginal market for rice export to China and now the China is most important buyer of Myanmar rice. However the trade is illegal from Beijing point of view and negotiations are being done to legalize it.
The selection of Myanmar rice millers would allow the Chinese authorities to make sure that the rice supplied to their country is up to their health standard.
After the trade would become legalize, the rice would exported to china by these selected firms by using ships to China’s eastern seaboard along with the current method of shipping overland through Muse in northern Shan State
Many of the rice firms selected by the MRF has criticized as inexperienced or several of the companies were unknowns with little track record in the industry. Complaints were drawn on social media against MRF that the companied selected for the trades by MRF were not capable of proving large export volume and those that were capable, were skipped.
One of the rice trader told The Myanmar Times that that after seeing the initial list, the Chinese side demanded inclusion from more companies with the capability to export large volumes of high-quality rice from Myanmar.
He also said that some of the companies even do not have registration prove.
More than 100 local companies applied for rice export license in first bid but only 10 firms received the license from China.
U Soe Tun did not say anything why the second bid did not received the same interest as the first although the conditions and selection criteria for the second bid was same as first.
Nine companies that were selected by the MRF in the first bids were MAPCO, Myanmar Rice Mill, FPR from the Myanmar Rice Traders Association, Golden Land East Asia, MRDC from Mandalay, a company from Yangon’s Bayintnaung commodities market still to be formed, Ayer-Pathein company from Ayeyarwady Region, SPRDC formed by Muse traders and Rakhine Ethnic Rice Company.
Myanmar Rice Federation officials said that they hope to start the legal rice export trade to China by the April end or May starting but the companies that
wish to involve in the trade need to be registered and their farm produce need to be tested before export and performance measured before the trade can officially begin.
In 2010 the Myanmar exported about 4000 tonnes went to China. In 2013 country exported 747,000 tonnes to China.
MRF is planning to send again a team of delegation from members of 10 top most rice exporting companies in the country along with all the related documents signed between Myanmar and China to attend a meeting with officials of China Certification and Inspection Group (CCIG), COFCO Group and Chinese companies that have signed Memorandum of Agreement with Myanmar.
CCIG, investigation group of China is planning to set up an office in Rangoon soon to check the quality of rice being imported from Myanmar by China.