As India tightens its grip on rice sales, and prices spike in Thailand and Vietnam, buyers are turning to alternative markets. One country poised to benefit from this shift is Myanmar, as it expects its rice exports to dramatically rise in the coming months.
The global tightening in rice supply is predicted to rejuvenate Myanmar’s rice shipments, which experienced a steep decline of 56% in the initial four months of the fiscal year. This drop could now be reversed, potentially helping Myanmar to reach its ambitious annual goal of earning $1 billion from rice exports, explained Ye Min Aung, president of the Myanmar Rice Federation, in an interview last week.
Between April and July, Myanmar exported around 320,000 tonnes of rice, garnering only $138 million. This was due to the government’s decision to focus on selling higher-grade rice. However, the situation changed last month when India, the leading global exporter, substantially restricted its overseas sales to maintain domestic prices ahead of a general election due next year. Consequently, prices in some of Myanmar’s regional competitors saw an upward trend.
Despite Myanmar’s complex situation of food insecurity, worsened by political instability following the military coup in 2021, the government’s export policy is carefully designed to preserve domestic supplies. Ye Min Aung stated that they hope to capitalize on the current global conditions, while still emphasizing the export of only higher-quality varieties of rice.
This quality focus enables Myanmar to sell better-quality grain for as much as $700 a tonne, in contrast to $300 or $400 a tonne for lower grades. However, it also narrows down the customer base to relatively wealthy nations.
In the previous two fiscal years, Myanmar accumulated over $800 million from rice sales. Its largest buyers include countries like China, the Philippines, and Belgium. According to the US Department of Agriculture, Myanmar was ranked as the world’s sixth-biggest exporter last year.
In a nutshell, the curbs on Indian rice exports, along with the price surge in Thailand and Vietnam, present Myanmar with an opportunity to revitalize its rice exports and move closer to its annual financial targets.
This news is based on an article from thestar.com.my.
