The price of rice is spiraling in some places in Arakan state in southern Burma from March 10, after local people learnt that over 25,000 tons of Burmese rice will be exported to Bangladesh this year.

The price of Emahta rice (a 20 per cent broken variety) has increased from 19.000 Kyat (USD 18) to 25000 Kyat (USD 24) for one bag (30 Kilograms) in the townships of Maungdaw, Rathe-taung, Buthidaung, Minbya, Ponnagyun and Mrauk-Oo.

“The price has gone up so much because  rice traders have started purchasing rice at  increased prices after they heard that Bangladesh will import rice from Burma,” a rice trader from Rathe-taung township told Mizzima.

"The price went up within two days because rice was not transported from other townships and whatever we have in our township is also being exported to Bangladesh, a rice mill owner in Maungdaw said.

There are further restrictions in place in transporting rice from one place to another in Arakan State, she added.

"Earlier, we could carry around five sacks of rice from one town to another. But now we are allowed to carry only one sack. So rice prices soared immediately in areas like Buthidaung and Maungdaw, where rice production is not sufficient for local consumption," she said.

Local people in Maungdaw transport rice to Bangladesh illegally, after bribing Burmese border security personnel since it is located on the border of Burma and Bangladesh with Naff River as its boundary.

Bangladesh will purchase over 25,000 tons of rice from Burma for domestic use. The decision was taken at a cabinet committee meeting on public purchase in Dhaka early this month. The Singapore-based Indo-Sino Trade Limited was contracted to supply bulk rice from Burma at US$395 per tonne.