Increasing rice hoarders cause price high

la 9
Rice bags are seen being organized at the warehouse.

One of the reasons causing rice prices high is the hoarding of rice, U Ye Min Aung, chairman of the Myanmar Rice Federation told The Global New Light of Myanmar (GNLM).
Currently, the transaction of rice and broken rice at Muse rice wholesale is slack and the export via the China-Myanmar border is also coming to a standstill, said the rice merchants of Muse.
These cases occur for various reasons including the increasing prices in local and export earning 65-35 cases and export via sea route from Yangon, said U Ye Min Aung.
“The export volume to China falls a little. But we are still exporting to China. It is very rare to export to Yunnan via the border. There are various reasons for such cases. The main reason is that the price is high locally. It can be due to 65-35 cases. But it is not just for that case. The local prices are on the rise and the local rice prices are high as the number of people who store the products are increasing. The number of hoarders is high as they intend to resell at high prices. It also exports to Guangzhou and other Chinese ports from Yangon via sea. Then, it is also in the rainy season. Normally, I think it can be in May, it exports only 50,000 tonnes or 100,000 tonnes in June and July, and about 200,000 tonnes in the rest months and open seasons.
‘‘One of the reasons is the rainy season. The volume is low in June, July and August. The local rice price is high when compared to the same period. The broken rice is exported via the border. The need for broken rice locally is high for the breeding sector as well as the industrial sector. When the broken rice price is high and the country’s need is also on the rise, it cannot be a reasonable price. Therefore, for such cases, the volume through the border drops. We are figuring out the solution to solve it. The rice is exported quota system and it is rarely exported via border.
‘‘Now, we are discussing with the Yunnan government to be able to export the rice via land borders. Although the volume via sea is falling, the income doesn’t show a decrease in income. We receive high income this year. It is over $300 or $400 per tonne this year. There is no change in income although the amount is decreasing. It is between 50,000 tonnes and 100,000 tonnes during these months. We expect to export two million tonnes per year,” he said.
Although the rice price is high in the country, the Chinese offer lower prices and so it does not make good profits. Therefore, the Muse rice merchants do not export rice and broken rice to China via land borders. Moreover, the changes in financial policy also affect some sectors.
“As Muse rice wholesaler, the entry of rice and broken rice is very low. The transaction is slack at all. The export volume to China becomes lower and the sales are at a standstill. We face such a situation in late April. The Muse rice wholesale centre mainly focuses on rice and broken rice and now the operation of the centre is cool.
‘‘The transaction will start in the monsoon paddy season in October. When the financial policy is changed, the licences are not revoked and the Myanmar side can export and China side accept starting 1 March. However, the prices of rice and broken do not make good profits just for the reason of financial policy changes.
‘‘The next one is that the rice and broken rice are out of stock locally. The price is high locally and the China side does not offer a high price. Then, there are changes in financial policy. Although we can trade and the licences are not revoked, the merchants might not export to China as it does not make any profits for them,” U Min Thein, vice-chairman told the GNLM.
State Administration Council Chairman Prime Minister Senior General Min Aung Hlaing mentioned the arrangement to ease the 65 per cent and 35 per cent of export earnings during the meeting with business people held at Kanaung Hall of Hlinethaya Industrial Zone on 5 February. — Saya/KTZH

Share this post
Hot News
Hot News