Rice market sluggish on poor demand

Rice market is slow-moving at the end of June 2023 with the demand declining in Yangon’s wholesale market.
There is a moisture content problem in the rainy season so the rice cannot be stored longer as in the summer. The traders are selling them out. Despite the sluggish market, the price hike remains.
The prices of high-grade Pawsan rice moved in the range between K87,000 and K110,000 per bag depending on the producing areas from Bogale, Mawlamyinegyun, Pyapon, Myaungmya and Shwebo.
The low-grade rice prices stood at K82,000 per bag of Pawkywe, K75,000 for short-matured rice (90 days), K65,000 for rice grown under the inter-cropping system, K57,000 for Emahta variety and K44,000-47,500 for broken rice.
Trial operations of warehouse storage situations in the rice producing regions commenced this month to evaluate the rice stock volume of the traders. Those traders who store above 5,000 baskets of paddy and 1,000 rice bags (over 50 tonnes) must register with the relevant institution.
Some traders want to sell new summer paddy in the market at the present time. The market is cooling down this month. Newly harvested summer paddy started flowing into the upper Myanmar regions. The prices of low-grade rice dedicated to foreign markets are climbing in the domestic market so the profit has become less and exporters are also mulling over the purchase.
Monsoon paddy season has commenced in lower Myanmar regions. New supply of monsoon rice will enter the Yangon market in September.
This year, the price of high-grade Pawsan paddy from Shwebo area hit K3 million per 100 baskets, while Pawsan paddy from delta regions fetched K2.4 million and low-grade paddy was priced at K1.9 million per 100 baskets.
There is a low probability to reach the record high that occurred in the Q2 last year.
The price of high-grade rice is approximately K100,000 per bag. The demand is significantly poor this year. The prices of low-grade rice are unlikely to go up on new summer paddy supply and low foreign demand if in unusual situation arises.
Those traders keeping the paddy stocks in hands have less chance of profit as they purchase the paddy at high price, U Myint Hlaing, a rice trader, told the Global New Light of Myanmar (GNLM).—TWA/EM