Paddy prices fall in Arakan due to declining purchases from mainland Myanmar

By DMG 01 Oct 2021

DMG Newsroom
1 October 2021, Sittwe

Paddy prices in Arakan State are falling due to declining purchases from mainland Myanmar, according to paddy merchants.

U Khin Maung Gyi, vice chairman of the Rakhine Economic Initiative Public Co Ltd (REIC), said political instability and the Covid-19 situation had led to a decline in paddy markets on mainland Myanmar, causing a drop in rice purchases. He added that paddy prices had fallen in Arakan State.

“Some people stockpile paddy for sale for a profit. These people are there to sell when the price of paddy goes up. If the traders who stockpile paddy do not sell it, the price of paddy will go down. For those who stockpile paddy, they will suffer financial loss if the price of paddy falls,” he said.

U Khin Maung Gyi continued that demand for paddy has weakened due to the closure of markets at the border in Arakan State.

The Sittwe and Maungdaw border trade camps in Arakan State have been closed since July 15 to prevent the spread of Covid-19.

“If the rice is bad and broken, the price is K380,000 and if the rice is not high-grade, it will be around K400,000. This is attributed to the rise in fuel prices,” said a rice merchant in Kyauktaw Township.

“We used to get good prices about a month ago, but now the price of paddy is falling again. Previously, Paw Hsan Hmwe [Myanmar pearl rice] sold for over K400,000. Traders say prices have fallen due to poor rice sales and a lack of buyers,” said U Kyaw Sein Hlaing, a farmer from Ngwe Twin Te village in Pauktaw Township.

In the past, the price of 100 baskets of Myanmar pearl rice was up to K450,000 and 100 baskets of Kaut Ngel was up to K280,000. At present, the price of Paw Hsan Hmwe (pearl rice) has dropped to K400,000 and the price of Kaut Ngel has dropped to K250,000.

This year, fertiliser prices have skyrocketed to K70,000 per bag in Arakan State. As a result, farmers say they have not been able to use enough fertiliser to grow paddy at previous levels, leading to lower yields.

“I don’t think it will cover the cost of paddy and land. Farmers will suffer financial losses,” said U Pan Hla Aung, a farmer from Okkan village in Mrauk-U Township.

Farmers in Arakan State are worried that paddy prices will continue to fall as the paddy season approaches.

“If prices continue to fall until the time of the paddy harvest, it will be difficult for farmers on all sides. Some are even regretting what they did in the middle of the year,” said U Kyaw Kyaw, a farmer from Mrauk-U Township.