Monday, 31 December 2012

Rice price insurance to avoid market crash

Myanmar Farmers Association (MFA) has submitted a proposal to Thein Sein’s government to set up a rice price insurance program recently that will protect rice market crash.

Protecting farmers from potentially disastrous losses and rice market crash, MFA urges the government to buy rice from producers and farmers with rice price insurance.

Local rice price has dropped  down to US$350 per 1050 kg as well as the global rice market seems declining.


The supply is higher than the demand due to havesting moonsoon paddy from various regions and selling harvested paddy for summer cultivation.

“High-yeild rice this year in rice exporting countries and shipping delay due to December consecutive holidays in rice buyer countries, have dropped down the rice price as well,” stated in the proposal of the chairman Dr. Soe Tun of MFA.

MFA has asked the government’s  National Rice Reserves Supervisory Committee (NRRSC) to consider buying at least 10,000 metric tonnes of rice (Emahta) with the balance of the committee’s budget, buying about 1.05 million kg rice (Ematha) daily from the Myanmar Agribusiness Public Corporation (MAPCO) as well as buying rice from Rice Mill Associations, rice export companies and farmers who are having difficulties selling their rice.

The MFA is willing to negoctiate with Myanmar Paddy Rice League, Rice Traders Union, Rice Milll Associations and MAPCO to sell the rice to NRRSC.

To protect recent rice price decline  MFA urges the government to buy a total amount of 100,000 metric tonne rice next month due to the rice price has dropped down to production cost.
 
source: Eleven Myanmar

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