Chiang Mai – For the first time after temporarily banning rice exports, about 40,000 tons of rice have been exported, an official at the Commerce and Trade Ministry said today.
The junta had banned the export of rice after Cyclone Nargis hit Burma, but six months on have now again permitted rice exports.
"Yes, this week, we have exported rice for the first time. We have exported about 40,000 to 50,000 tons of rice so far by ship. Exporters can export any crops they like but the amount must be at least 15,000 tons," an official from the Commerce and Trade Ministry said.
"A shipload of rice has been exported. Anyone who wishes to export must submit their application to our ministry with details of storage area, area from where the rice was bought and delivery point. The ministry will pass all applications with complete information," he added.
A source close to export companies confirmed the news. The first batch of rice export was conducted by the 'Ayer Hinthar' and 'Ayerwaddy' companies. But the source could not provide further details.
The junta banned rice exports after Cyclone Nargis hit Burma in early May this year in fear of a rice shortage in the country.
An official from the Export Department earlier told Mizzima that rice exports would be permitted again in view of the self-sufficiency of the country.
A rice trader from Rangoon said that the price of rice, however, will not rise again in the domestic market, since domestic rice demand is declining amid the sluggish economy.
"In the current situation, workers cannot buy rice in bags as they are unemployed. They cannot even afford to pay 500 kyat per pyi (less than 50 cents for about 2 kg) for the cheapest rice. Most of them are like that. I have to pay my workers 500 kyat per head only for buying morning curry. In the evening, I must pay them 1,500 kyat per head regardless of the availability of work. Big families are facing much difficulty. The people are facing a shortage of employment," a rice trader from Bagyintnaung Trading House in Rangoon said.
"The price of rice is declining at the moment. Consumers are not buying much. This situation will affect the rice producers first as they invested much input cost in their productions. If farmers abandon their farmlands due to the lowering rice price, a shortage of cereal crops will appear," another rice trader from Bayintnaung market said.
The major rice producing regions in Burma are Ayerwaddy Division, Mon State, Karen State, Pegu Division and Sagaing Divisions.
The major export markets for Burmese rice are Indonesia, Brunei, Bangladesh, Mauritius and South Africa.
According to the FAO's statistics, Burma expects to export 600,000 tons of rice in 2008, which accounts for one percent of total world rice production.
