12/19/2023 0 Comments Myanmar exporter![]() Since 1977, the government has promoted high-yielding varieties (HYVs) of rice seed, with 65% of Myanmar farmers now opting for HYVs. ![]() Many determinants of farm-level productivity relate to inputs, such as seed, fertiliser and irrigation. Note: The red line marks the year that Vietnam surpassed Myanmar in rice exports. Sources: Authors’ representation using data from the Food and Agriculture Organisation and the USDA FAS. This is evident from the observation that Myanmar and Vietnam once exported rice at comparable levels, but consistent increases in Vietnamese average yield allowed the country to surpass Myanmar in rice exports in 1989 – within one year of overtaking Myanmar in average yield (see Figure 2) (Kubo, 2012). Importantly, though much of Myanmar’s rice trade occurs informally, this article concentrates on the Myanmar rice industry as it relates to formal exports only.Ī major constraint to Myanmar’s rice industry is low productivity at the farm level, manifesting in low yields. Of the many challenges facing the rice sector in Myanmar, issues of productivity and quality are central. With a target set by the Myanmar Rice Federation (MRF) to achieve four million tonnes in exports by 2020-2021, it is vital to build on this momentum by addressing the critical challenges that remain for the industry (Myanmar Rice Federation, 2019). These included floating the currency, eliminating minimum export prices, and liberalising rice export licenses (World Bank, 2014). ![]() This is testimony to the reforms to the sector and the wider economy over the past decade. Note: The 1940-1949 figure averages 19-1949.įast-forwarding to 2019, the country’s annual rice exports have surged to 2.8 million tonnes, according to the United States Department of Agriculture’s (USDA) Foreign Agricultural Service (FAS). Sources: Authors’ representation using data from World Bank (2014) and the USDA FAS. Thus, Myanmar’s rice industry entered a vicious cycle where low-quality inputs led to low-quality outputs, which soon became uncompetitive in the international market. Moreover, milling fees were insufficient to cover equipment repairs, and millers faced no incentive to invest in upgrading their facilities (World Bank, 2014). Rice quality also deteriorated, as Myanmar farmers sold low-quality rice in response to government sales quotas at unattractive prices. The state maintained a monopoly on rice exports, which served as an important source of foreign exchange earnings despite low volumes (Okamoto, 2005). Post-independence nationalisation of the industry was accompanied by a sharp decline in exports, reaching a low of 15,000 tonnes in 1997 (Proximity Designs, 2016). Myanmar once held the distinction of being the world’s largest exporter of rice, accounting for one-third of the global rice trade in 1934-1935. However, key challenges need to be addressed for the country to re-establish itself in the international market. Myanmar’s rice industry can be reignited by reforms.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |