Chinese businessmen have struck a deal with Myanmar farmer representatives to grow and procure rice in Myanmar in 2013-14 to benefit from low prices in Myanmar, according to local sources.
Under the deal, China is expected to provide fertilizer and other inputs to Myanmar farmers for rice cultivation. The entire harvest will be purchased by the Chinese businessmen at local prices as per the agreement. Indian businessmen have also struck a similar deal with Myanmar representatives, sources say.
Myanmar is aggressively looking for foreign investment in its rice sector to help the country regain its status as a prominent rice exporter. Currently, rice production in Myanmar is below potential partly due to fluctuating prices and constant farmer debts. The Irrawaddy Delta in Myanmar is larger than Vietnam’s Mekong Delta, and foreign investment in the region could boost Myanmar’s rice production and exports significantly.
According to the USDA, Myanmar’s annual rice production is estimated at around 11 million tons, against a consumption of around 10 million tons. However, local sources say that Myanmar’s rice production has increased to around 13-14 million tons.
In the fiscal year 2012-13 (April – March), Myanmar exported around 2.1 million tons of rice, up about 40% from the targeted 1.5 million tons, and almost three times the 750,000 tons exported in the previous fiscal year. Myanmar rice exports have surged mainly due to low prices. Neighboring China is a major buyer of Myanmar rice. Recently, the EU removed import tariffs on rice from Myanmar under the preferential trade scheme for least developed countries.
source: ORYZA
http://oryza.com/news/rice-news/china-india-businesses-invest-rice-production-myanmar
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