The Chili Market and Technology Development Association will sign a memorandum of understanding (MoU) with a Viet Nam-based company this month for export of chilis to Viet Nam.
Six containers of chilis are expected to be exported to Viet Nam every month under the agreement. The price at which chilis will be procured from farmers for export will be calculated on a daily basis according to the prevailing market rate.
“The price of chili is on the decline because we don’t have demand from China. That is why we have turned to Viet Nam to purchase chilis from local farmers. Once local farmers agree, contract farming will be conducted on a regular basis. At present, we will purchase chillies from local farmers first because they are facing difficulties due to the price fall,” said Daw Ohnmar Kyaw, the chairperson of the Chili Market and Technology Development Association.
Currently, the Viet Nam-based company, which is negotiating chili production through contract farming and provision of seeds to local farmers, will buy chilis from local farmers under the MoU. “The company wants to purchase more than six container cars of chili. But, we don’t have much supply because some chilis were damaged by bad weather conditions. That is why we can guarantee only six containers of chili. The price of chili will depend on the daily market price. Contract farming must be conducted after fixing the price,” said Daw Ohnmar Kyaw.
Last June, the price of chili was between K8,000 and K17,000 per viss in the local chili market. In the third week of July this year, the price of chili is ranging between K1,200 and K1,500 per viss.
“China buys chili only when it needs it. At present, we export most of our chili to China,” said U Soe Than Min Din, the chairman of the Myanmar Fruit and Vegetable Producers and Exporters Association. While local chilis are mainly exported to China and Thailand, Myanmar also exports 692 chili varieties to other countries. Myanmar chili is mainly cultivated in the Ayeyawady Region and Kyaukse township of Mandalay Region.
By Aye Yamone(Translated by Hay Mar)