Rice export to China via Muse 105th Mile trade zone drops by half

Myanmar rice export to China via Muse 105th Mile trade zone plummeted by half, according to the Muse Rice Wholesale Centre. Although Myanmar exported 60,000 bags of rice and broken rice daily to China from earlier October to 20 December; only 30,000 bags of rice can now be exported after 20 December. Myanmar rice export to China has dropped because Myanmar exported only the rice permitted for 2020 and the rice is stockpiled in Muse wholesale centre. It is also explained that the 2020 rice export permit from China will end on 31 December. The rice from lower Myanmar does not reach the Muse border area because the permitted rice stock and the remaining rice are being exported to China before 31 December. There are many rice stocks in the Muse border area.

The price of broken rice is also a bit on the decline because of the high charges of export trucks and depreciation of the exchange rate. However, according to Muse Rice Wholesale Centre, Myanmar exported about 30,000 bags of rice and broken rice to China daily. The export rice to China is sold for ¥128 per 50-kg bag for broken rice, ¥136 per pack for Thuka rice and ¥137 per bag for Nga Sein rice in Muse market, according to Muse Rice Wholesale Centre. China will issue the new rice export permits for 2021 in January. Also, China is likely to give more licences to the companies this year than last year, according to the rice traders’ opinions.

The Chinese government has granted rice export licences to 15 Chinese companies in the year 2020. It is heard that the Chinese government would issue the rice permits for 2021 to 50 companies. But, any confirmation has received yet. If the Chinese government confirms it, the export value will increase three times than in 2020. And, the border trade volume will increase compared to the previous years. Myanmar has opened four border trade zones with China; Muse and Chinshwehaw in Shan State, and Kampaiti and Lweje in Kachin State. Majority of the trade is carried out through the Muse land borde.

Source: The Global New Light of Myanmar

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