Rice export through sea trade up by $180 mln this FY

Myanmar rice export through sea trade generated an estimated income of US$581.6 million as of 17 July in the current financial year and the figures reflect an increase of $181.4 million compared with a year-ago period, as per data from Myanmar Rice Federation (MRF). Myanmar maritime trade constituted over 85 per cent of rice exports. Earlier, border trade was relatively high compared to sea trade in terms of rice exports. Since the previous financial year, border trade has dropped, and currently, it accounts for just 14.8 per cent of the total rice exports.

Rice exports through the borders have generated an estimated $96.68 million in the current financial year, which plunged from $173.3 million registered in the corresponding period of last year. Myanmar primarily exports rice to China through the borders. However, trading in agricultural products has been halted on account of China clamping down on illegal trade and China’s precautionary measures to contain the spread of coronavirus. It is difficult to ship rice in the rainy season. In July, rice prices significantly plunged as against June, said traders from Bayintnaung market. The volume of rice and broken rice exported between 1 October and 17 July in the 2019-2020FY has been estimated at over 2.25 million metric tons, worth over $678.29 million, according to an announcement from the MRF. In the current budget year, Myanmar has shipped rice to 66 foreign markets. China is the main buyer of Myanmar rice, followed by Malaysia and Madagascar. The Philippines is the fourth-largest buyer and Cote D’Ivoire the fifth-largest buyer of Myanmar rice.

In 2019-2020FY, Myanmar has exported broken rice mostly to Belgium, followed by Senegal, China, Indonesia and the Netherlands. Broken rice has been placed in 57 foreign markets. ASEAN countries constitute 17 per cent of Myanmar total rice exports. The European Union countries account for over 20.45 per cent of rice exports, while 30.2 per cent of total rice exports in Myanmar goes to African countries. According to the work coordination meeting held on 26 June, 150,000 tonnes of rice will be exported each in July and August. And, 100,000 tonnes of rice will be sent to the external market in September, totalling rice export quota of 400,000 tonnes. The Ministry of Commerce, Myanmar Inspection and Testing Service (MITS), the authorized organization of the State and MRF implemented rice reserve scheme on 30 April. The state has purchased an adequate amount of rice (50,000 tonnes). Myanmar shipped 3.6 million tonnes of rice in the 2017-2018FY, which was an all-time record in rice exports. The export volume plunged to 2.29 million tonnes, worth $691 million, in the 2018-2019FY.

Source: The Global New Light of Myanmar

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