A month-long surge in US dollar exchange rates against Myanmar currency ‘kyat’ has benefitted rice exporters in Myanmar, but it has led to an increase in local rice price, businessmen said.
Rice is not only the staple food of
Myanmar but also a major export commodity. Myanmar has exported 97,000
tonnes of rice as at May 17, earning US$38 million within the first 47
days of fiscal year. In the same period last fiscal year, 119,000 tonnes
of rice were exported.
Demand is rising up now as exporters
gain better profits from around 10 percent increase in US dollar value
against Myanmar kyat.
Businessmen said a tonne of rice is
averagely US$360 and it would yield larger amount once converted with
the new exchange rates as previous average dollar exchange price 860
kyats (K) has risen up to 948K now.
The favourable market condition however
has little positive impact to the farmers who has already sold out all
the stock by this time, observers said.
It is just benefiting the exporters who
hold majority of stock currently. Farmers will gain benefits only if the
condition remains until harvest of monsoon crops, they said.
Strong demand has also caused a hike in
local rice prices, placing a burden to the grassroots and average people
including farmers themselves. A bag of Emahta rice has risen from
12,500K to 15,000K now.
During previous fiscal year, Myanmar
earned total US$528 million from export of 1.3 million tonnes of rice.
More rice export is expected this year as the newly formed Myanmar Rice
Federation has initiated micro-credit loan programs for farmers to grow
rice.
Previously, Myanmar’s rice export was
monopolized by the state-owned companies. After Myanmar Rice Federation
was formed, the market was liberalized to some extent. Still, those
companies with close link to the government remain major rice exporters
and allegedly evade taxes.
source: Eleven Myanmar
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