Myanmar to export 100,000 tons of rice to China in August through barter

Between 4,000 to 5,000 bags of rice are exported to China on a daily basis. Photo : Than Zaw Min (IPRD)
Between 4,000 to 5,000 bags of rice are exported to China on a daily basis. Photo : Than Zaw Min (IPRD)

Myanmar will export 100,000 tons of rice to China using the barter system beginning this August, according to U Saing Kyaw, secretary of the Rice Merchants Association of Mandalay.
Myanmar’s Mandalay Rice and Paddy Development Public Co., and a Yunnan-based Chinese company, signed the agreement on 25 July in Mandalay to export 100,000 tons of rice within ten months.
Under the agreement, Myanmar merchants are able to export any kinds of both old and fresh long grain rice produced across the country to Chinese merchants, said U Saing Kyaw.
He added that a system of barter is an exchange of goods and services for other goods, without paying with money. According to the agreement, Myanmar will import fertilizer and farming gears, medicines and related equipment, iron, steel and construction materials from China.
This system allows merchants to import commodities granted by the two governments.
There is an agreement between merchants to enjoy a five per cent discount on importing products from China.
The rice will be exported by the Mandalay Rice and Paddy Development Public Co., which is one of 11 companies allowed to export rice to China. The price of rice will be set in Myanmar.
U Saing Kyaw said the barter export of rice will benefit growers and rice millers, though it is difficult for merchants to sell commodities imported under this system. Currently, 4,000-5,000 bags of rice are exported to China on a daily basis.—Than Zaw Min (IPRD) (Translated by Khaing Thanda Lwin)

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