Rice export likely to drop when compared to previous FY

18 November 2020

Myanmar expects to export 2 million metric tonnes of rice and broken rice to the international market during this 2020-2021 fiscal years, and it is quite lower than that of the previous year, which was 2.5 million metric tonnes, according to Myanmar Rice Federation.

U Lu Maw Myint Maung, General Secretary of Myanmar Rice Federation noted that although 2.5 million metric tonnes of rice and broken rice were exported to over 60 foreign countries last year, this year there is likelihood of drop in export due to lesser local rice production and Covid-19 crisis.

“The exporters consider export delay after contracting with the foreign buyers in case of factory closure or any other possible impacts of Covid-19. So, for that reason, the amount is limited to the extent of someone’s handling capacity, thereby generally leading to drop in export. At the same time, because of weather condition and Covid-19, the local paddy production has decreased by about 10%, and also the export volume will be the same matter. Last year, the production was good and the export volume was quite high. This year, with decreased production, the export will slightly drop,” said U Lu Maw Myint Maung, General Secretary of Myanmar Rice Federation.

According to the data released by Myanmar Rice Federation in October, during 2019-2020 FY, a total of 1.6 million metric tonnes of rice were exported to 66 countries, and a total of 0.97 million metric tonnes of broken rice to 60 countries, which is worth of $794.3 million revenue.

Ko Myo Zaw, a farmer from Twantay Township, said, “The production is good if the weather condition remains unchanged. It all depends on weather. We have to pay more for workforce for cultivation, but it is still hard to get sufficient workforce. We hope that we will profit from farming in this year as well. I have not cultivated my paddy yet so I do not know about the future market. The current price ranges from 500,000 kyats per 100 baskets. Those who can store will benefit more.”

During 2019-2020 FY, Myanmar exported the highest volume of rice to China, which was accounted for over 500,000 metric tonnes, and it also exported to ASEAN countries, EU market, and African countries.

For the broken rice, the highest export volume went to Belgium, and the other to the countries include China, Senegal, Indonesia, the Netherlands, the United Kingdom, Thailand, Guinea, Poland, Malaysia, and more.

Thaw Tar Swe Zin, Soe Min Aung and Bo Bo Thein