Economic malaise deepens in conflict-wracked Arakan State

By Admin 26 Apr 2024

DMG Newsroom
26 April 2024, Sittwe

The economy is spiralling in war-ravaged Arakan State as its producers can’t sell their products such as rice and other agricultural crops, meat and fish to local and foreign markets, according to business owners.

Agriculture and fisheries are the key sectors of the economy in Arakan State. The regime has blockaded roads and waterways since renewed fighting broke out in November, effectively cutting off the flow of goods into and out of Arakan State.

While basic foodstuffs and consumer goods are still coming into Arakan State through some channels, the state has not been able to sell its products for months.

“We can export nothing from Arakan State as the regime has cut off roads and waterways,” said a business owner from Pauktaw Township. “However, we have to rely on domestic and foreign markets to get basic foodstuffs and consumer goods. So, there is no income, and only expenditures. The economy of Arakan State is in decline.”

As the fighting continues to take a toll on the economy, people are suffering from greater financial hardships. Farmers are having a hard time as they can’t sell their produce and rice.

“There is no demand for rice as it is wartime now. At this time last year, there was a certain level of demand. If we can’t sell off our rice, we will have no money to buy paddy in the coming rainy season,” said a farmer from Ponnagyun Township.

Border trade with Bangladesh through Sittwe and Maungdaw has been halted by the fighting. The regime has also imposed a ban on fishing and export of fishery products in coastal townships and areas engaged in commercial-scale fish and prawn breeding.

“I have not been able to go to the sea for fishing for nearly five months, partly because junta vessels shell indiscriminately on boats. I have been forced to sell or pawn belongings to feed my family. If it goes on like this, things will only get harder,” said a fisherman from Kyaukphyu Township.

The banking system has effectively collapsed in townships seized by the AA and townships experiencing intense fighting. Public sector employees report not receiving their monthly salaries due to the cash crunch.