Rice prices climb up on strong demand

The prices of rice and rice crops jumped in 2021 as against the rates recorded in 2020 on the back of strong demand in domestic and external markets.
The prices of rice in domestic markets increased by over K10,000 per bag in 2021. At present, rice worth K43,000-50,000 per bag is highly demanded in the domestic market. The prices of high-quality rice move in the range of K43,000-58,000 per bag, Bayintnaung Rice Wholesale Centre’s price data indicated.
Meanwhile, the prices of low-quality rice are relatively low at K2,2500-2,3500 per bag. Low-quality rice was mostly purchased by Chinese traders yet COVID-19 restriction measures negatively affected the border trade between Myanmar and China, causing the price drop.
Pawsan rice crops also touched a high of around K950,000 per 100-basket in 2021, whereas it fetched only K685,000-786,000 in 2020. However, high input costs cut the benefits of the growers.
The prices of low-quality rice crops stayed unchanged last year amidst the suspension of border posts. Consequently, traders turned to maritime trade for rice export. Myanmar shipped rice and broken rice to China, regional countries and European Union countries through maritime trade.
High transportation rates, inflation, banking restrictions, high input cost and transport barriers owing to the COVID-19 negative consequences and political instability are contributing factors to the rise in commodity price last year, a trader from the Bayintnaung wholesale market pointed out.
Myanmar has shipped more than 500,000 tonnes of rice and broken rice to foreign trade partners between 1 October and 30 November in the current mini-budget period (2021-2022), the Myanmar Rice Federation stated.
The country sent over 27,000 tonnes of rice and broken rice to the neighbouring countries through border trade, whereas it placed over 470,000 tonnes in the international market via maritime trade.
Myanmar also generated an income of US$700 million from 2 million tonnes of rice exports to the foreign countries in the past 2020-2021 financial year.—KK/GNLM