Export rice prices sliding amid falling demand by China

Workers loading the truck with sacks of rice at Botahtaung Jetty in Yangon. PHOTO: Phoe Khwar
Workers loading the truck with sacks of rice at Botahtaung Jetty in Yangon. PHOTO: Phoe Khwar

By Nyein Nyein

The export rice prices in recent days are slightly dropping on account of the falling demand by China, said vice chairman U Min Thein of Muse Rice Depot. In the first week of August, China purchased about 30,000 bags of rice per day. The demand plummeted to about 10,000 bags in recent days.
“The price of rice is declining in China. Earlier, the rice was priced 130-132 Yuan per bag. It is now rarely traded at 125 Yuan. The price slipped back slightly,” he said. The General Administration of Customs of the People’s Republic of China (GACC) granted licences to 43 Myanmar companies on 10 July 2020 to export the rice to China through a legitimate trade channel. About 10 of them are exporting rice to China, he continued.
“Although 43 companies are granted licences some of them are lacking documents, and some are still observing the market. Around six companies are sending rice to China,” he added. The prices of rice in the export market significantly plummeted in July against the previous two months, as per data of Myanmar Rice Federation (MRF). The prices have remained flat for two months (May and June) and sharply fell in July.
In June, the prices of white rice varieties ranged US$395 to 440 per metric ton depending on quality. The prices plunged to $375-420 per metric ton in July. The prices of rice last month move in the ranges of K36,000-51,000 per 108-pound-bag of Pawsan varieties, with a drop of K3,000 per bag compared to the previous two months. Meanwhile, low-quality rice fetched 20,500-22,500 in the domestic market, showing a decrease of K1,000 per bag as against the prices in May and June, MRF data showed. Myanmar exports rice, green grams, onions, chilli and other food commodities while CMP raw materials, building materials, pharmaceuticals and personal goods are imported. (Translated by Ei Myat Mon)

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