Myanmar Rice Federation sets reference prices for monsoon paddy harvest

By Admin 21 Sep 2023

DMG Newsroom
21 September 2023, Sittwe
 
The Myanmar Rice Federation has fixed the maximum buying price for rice at 2 million kyats per 100 baskets of paddy for the monsoon paddy harvest.
 
In an announcement on Tuesday, the federation said it had set the reference price to ensure appropriate profits for farmers, stabilise rice prices and reduce the financial burden on people by setting fair prices.
 
The reference prices are 1.3 to 1.5 million kyats for the Eae Ma Hta/Nga Sein variety, 1.6 to 1.8 million kyats for Ayeyarwady Paw Hsan and Ayeyar Padetha varieties, and 1.8 to 2 million kyats for the Shwebo Paw Hsan variety.
 
The rate is higher compared with last year’s reference rate, according to industry insiders.
 
“An acre yields 70 baskets of paddy. It costs an average of 900,000 kyats for an acre. Farmers can make good profits under the reference price set by the federation. Farmers usually make a loss for monsoon paddy every year. It seems that they will have profits this year,” said rice market analyst U Nay La.
 
At present, different varieties of rice fetch between 1.9 million kyats to 2.8 million kyats for 100 baskets.
 
Farmers have incurred higher costs during this year’s monsoon paddy cultivation season due to high fertiliser prices and labour costs. They said they can only make profits if 100 baskets of rice are sold for at least 2.5 million kyats.
 
“We have to use a large amount of fertiliser to get a high yield. I expect it will yield around 60 baskets per acre. It cost 700,000 to 800,000 kyats to grow an acre. This cost is exclusive of labour costs as we ploughed by ourselves. We can only make profit if we get 2.5 million kyats for 100 baskets,” said farmer U Tin Tun from Labutta Township in Ayeyarwady Region.
 
Farmers in Arakan State were hit hard by Cyclone Mocha in May and subsequent heavy rains and flooding during the paddy cultivation season this year.
 
Farmer U Shwe Mya Thar from Nayin Village in Minbya said: “We have had a lot of difficulties this year. Our seeds did not grow, and we had to buy saplings at 20,000 kyats for 100 saplings. So, the cost has doubled. And I am not sure I can reap a good harvest. So, I guess I can only make profit if rice sells at 2.5 million kyats per 100 baskets.”
 
Weather and high input costs remain major challenges for farmers in Arakan State.