India is planning to import rice grain from neighboring Burma (Myanmar) for the benefit of two of its far eastern states, Nagaland and Mizoram. Both states are far from the mainland and adjacent to the Burmese states of Sagaing, Chin, and Arakan.
India is planning to import 100,000 tons of rice from Burma through the Food Corporation of India. India’s minister for consumer affairs, food, and public distribution, Mr. Ram Vilas Paswan, has confirmed New Delhi’s plan to obtain rice from Burma.
The minister declared that it was only a temporary measure for India since India is actually a rice exporting nation and construction work on the Guwahati Silchar railway line has temporarily reduced the ability to transport rice to India’s northeast. Yet analysts view this as a new chapter in India-Burma trade relations.
According to a World Bank-sponsored report, Burma has the “potential to more than double its rice exports by diversifying and increasing rice production, opening its rice milling sector to direct foreign investments, and reducing export procedure costs.”
“Improving agricultural productivity and promoting rice exports are top priorities for the Burmese government. Despite its plan to export four million tons of rice by 2020, the actual annual rice export has reached only 1.3 million tons over the past years,” added the report.
Burma’s current rice export strategy favours the production of low quality rice, which is largely sold to Africa and China. Consequently, farmers have earned minimal profits and agribusinesses have foregone necessary investments. The situation is worsening as global demand for low quality broken rice is shrinking, according to the report.
