The government has pledged K13 billion to the Bago and Ayeyawady regions to allow them to purchase paddy at the basic price, said U Aung Htoo, the Deputy Minister for Commerce.
“The Bago Region government has asked for K8 billion to purchase paddy. To set the rules and regulations regarding that we will call a meeting soon. Afterwards, we will pay the subsidy to them. However, we will figure out a way so they can repay it. No report has been submitted by the Ayeyawady Region. The regional government has sought around K5 billion. The existing fund is adequate to make the allocations. It is available so they can buy paddy, if the market price falls below the basic price,” said U Aung Htoo.
At present, the Bago, Ayeyawady, and Yangon region governments have requested the leading group on protecting the rights and enhancing the economic welfare of farmers to buy the paddy at the set floor price, he said.
On 15 October, the government fixed the basic price of paddy (low-quality variety) at K500,000 per 100 baskets (one basket is equivalent to 46 pounds) for this year’s monsoon paddy and the 2020 summer paddy. The government has pledged K15 billion for purchasing paddy, in case the market price falls below the basic price.
Therefore, the concerned region and state governments are preparing plans to purchase the paddy if the price drops below the basic price.
“The related region and state governments will buy the paddy. They had to submit a report to the Union government to seek a purchase permit. They all have forwarded the respective reports and will take action on this,” said U Aung Htoo.
Additionally, to pay off the funds allocated under the government purchase plan, rules, regulations, and payment terms will be discussed, he added.
The agricultural management group and paddy purchase groups formed by the leading group will initiate the purchase plans in remote places, where it is hard to trade paddy at the basic price. The plans are being drafted at present. The Myanmar Rice Federation and warehouse businesses will also cooperate in the plans.
By Nyein Nyein(Translated by Ei Myat Mon)