Since 2011, myanmar has freely exported rice to china through sister kim, but since early this year, china has stepped up its efforts to control the traffic, its agricultural products, including rice, are not normally exported. At present, 1 million bags of rice (50,000 tons) are still in the city of mui-mui in myanmar and cannot be exported. Without a choice, business people can only change traditional modes of export and form companies to be exported by sea to other countries。
In an effort to reduce the dependence of rice on the chinese market, myanmar businessmen have transformed the past form of individual exports into one of multi-person corporate, group-based, sea-based exports。
Not long ago, 50 traders from the boinlang rice trading station joined together to establish a rice company called boinlang, which is preparing to export rice by sea to countries such as the united states。
The chairman of the newly established bhineland rice company, u nerin, stated that i had been in the rice industry for 35 years and that, as rice was currently exported through the border, it could only be exported by sea. However, large amounts of money are required for the management of warehouses and rice by sea, which is a major challenge for small and medium-sized traders. In order to address these difficulties, the business community in mandalay joined forces and set up a company。
As chinese purchases of rice to myanmar almost stagnated this year, the market for rice in myanmar was hit and the prices of rice for the new market declined in the hot season. Last year, the price of a bag of “90 days” rice was 26,000 kyats, while this year it fell to 19,000 kyats, even lower。
In addition, rice growers were frustrated last year, when the price of 100 kyats of rice was around 650,000 kyats, and only about 500,000 kyats this year. As a result, domestic businessmen in myanmar have joined forces to establish companies to export by sea to change the dependence of myanmar rice on the chinese market。
