Currently, it is not practical to export rice from Myanmar to the Philippines because the cost of the commodity in Myanmar is higher than the cost internationally. According to an Myanmar Rice Federation (MRF) official, rice from Myanmar can only be exported to the Philippines if it can be sold at a price comparable to the price of rice sold internationally.
Rice Exports From Myanmar
He mentioned in a statement, “We signed an MoU with Philippine International Trade Corporation (PITC). We've acquired a new market. If we can sell, we'll export and we also discussed with the importers in the Philippines. We cannot export at the current price. Our rice prices are higher than those in Vietnam and Thailand and so they cannot buy as well. We can export our rice to the Philippines only by selling in comparison with international prices”.
Throughout the months of April and May of the current fiscal year 2023–2024, Myanmar was able to export 110,000 tons of rice and broken rice via maritime trade and border trade.
Due to the current increase in rice prices in Myanmar, exporters of whole and broken grains of rice are currently not making much profit. According to Myanmar rice traders, the majority of traders have stopped exporting rice and broken rice and are now only exporting for existing orders.
Through maritime and border routes, Myanmar exports its rice and broken rice to 25 nations, including China, Malaysia, Spain, Belgium, France, the Netherlands, and Bulgaria.
Policy Decisions
A Myanmar delegation that included the MRF chairperson, businessmen, and traders traveled to the Philippines from June 6 to June 9 to discuss trade issues in order to be able to export more rice and broken rice.
U Thein Aung, the head of the Farmers Development Association, praised MRF for being able to sign an MoU to export more rice and broken rice while the cost of inputs is rising and for gaining access to a new market.
He mentioned in an interview, “ Because an MoU was signed and they will surely buy the rice from here. Demand has increased. While the prices of inputs are going up, on the other hand, if the market is opened, it is more convenient for manufacturers. We must hail it.”
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