MoU on rice exports signed with Yunnan govt
2019-04-25 16:40:45 / Myanmar Agro Food Exhibition
The Ministry of Commerce (MOC) and government of Yunnan Province, China, signed a memorandum of understanding on the export of Myanmar rice and other crops to China on April 21.
Under the agreement, Myanmar will be able to legally export crops such as rice as well as fisheries to China via the Muse border trade gate.
The MoU, which is a part of barter system, will see Myanmar importing construction materials and farming machinery manufactured in Yunnan Province in exchange for an equal amount in value of Myanmar-produced agricultural products.
The Agriculture, Livestock and Fishery Development Committee under the Union of Myanmar Federation of Chambers of Commerce and Industry (UMFCCI) will take charge of this agreement, which will take effect in May. Exporting rice to China will be the government’s top priority.
The barter agreement comes after tonnes of Myanmar agricultural products, including rice, sugar and maize, had accumulated at warehouses near the border after China, in an attempt to crack down on illegal border trade, temporarily banned all imports from Myanmar.
Since Chinese New Year in February, around one million bags of rice and 5000 head of cattle have been stuck in transit at Muse.
As a result, rice prices have decreased by up to 20 yuan per bag, while breeders were forced to sell their cattle at low prices. In total, trade volumes have fallen by a value of US$650 million year-to-date in the current fiscal year compared to the year before, according to the MOC.
China currently imports commodities based on a quota system. Myanmar’s official export quota, set in 2016, is 100,000 tonnes of rice. According to data from the MOC, over 50 percent of Myanmar-produced rice is sold to China via the border. As such traders are lobbying for that quota to be quadrupled, to 400,000 tonnes.
Traders have expressed skepticism at the agreement though. “The MoU is just an initial phase,” said U Mike, a rice trader from Mandalay. He pointed out that Myanmar had signed several MoUs on trade with China in the past. Myanmar agricultural products, which up until now have been deemed illegal by China, will be costly if they are made official so it might be not profitable for traders and farmers in the early stages of the MoU, rice traders said.
Although rice production in Myanmar hit its highest in 73 years last year, production is expected to taper this year as a result of declining demand in the Chinese market, which is the main buyer of Myanmar rice, according to rice traders.
Rice is a main export of the country, generating over K5 trillion annually of which 40pc is generated by exports. As it plays a major role in the country’s economy, it is very important for rice producers to focus not only on the price but also on the quality, vice president U Henry Van Thio said at the Seminar for Development of Myanmar Rice and General Assembly and Annual General Meeting held by Myanmar Rice Federation on February 9.
More News
- Fluid Power Technology Seminar and Taiwan Aerospace & Defense Industry Development Trends and Opportunities Forum Taipei Int’l Fluid Power Exhibition / 2024-07-26 10:22:52
- Exhibition rescheduled to July26-29! Chan Chao / 2024-07-24 20:56:19
- 【Continuous Updates】Taiwan International Laser Forum and New Product Launch Laser Taiwan / 2024-07-19 14:35:01
- Highly Anticipated Floor Plan Revealed -2024 BIO Asia-Taiwan Exhibition BIO Asia-Taiwan Exhibition / 2024-07-17 13:42:48
- 2024 BIO Asia-Taiwan Exhibition - Exhibitor Showcase BIO Asia-Taiwan Exhibition / 2024-07-12 10:54:35
- 【VietnamWood 2023】Profession and Entertainment ALL in ONE VIETNAMWOOD / 2024-07-09 16:48:49
- 【VietnamWood 2023】 Has a successful start VIETNAMWOOD / 2024-07-09 16:48:40
- 【VietnamWood 2023】Highly reputed by exhibitors VIETNAMWOOD / 2024-07-09 16:48:34
- Smart Wood Manufacturing by VietnamWood 2023 at SECC on 9/20-23 VIETNAMWOOD / 2024-07-09 16:48:28
- HAWA Renewed Strategic Cooperation with VietnamWood VIETNAMWOOD / 2024-07-09 16:48:21
- VietnamWood's Digital Path to Woodworking Excellence VIETNAMWOOD / 2024-07-09 16:48:11
- VTG is ahead, successfully addressing industry bottlenecks in textile transformation VTG - Vietnam Int'l Textile & Garment Industry Exhibition / 2024-07-09 16:44:25
- 【Application Closed】2024 Foreign Buyers Incentive Program Taipei Int'l Industrial Automation Exhibition / 2024-07-04 09:12:07
- Exhibitor Registration for ATLife 2025 open NOW! Assistive Technology for Life / 2024-06-05 09:22:35
- ANEX PRO Award List Asia Nonwovens Exhibition And Conference / 2024-05-23 17:32:03
- Something interesting you can experience in HanoiPlas 2024 Hanoi Plas / 2024-05-20 15:18:53
- Notice of Rescheduling for The 16th Vietnam Int’l Woodworking Industry Fair (VietnamWood 2025) VIETNAMWOOD / 2024-05-15 10:41:14
- Postponement Announcement: The 9th Cambodia International Textile & Garment Industry Exhibition (CTG) CTG / 2024-03-04 14:50:53
- Postponement Announcement: The 9th Cambodia International Machinery Industry Fair (CIMIF) CIMIF / 2024-03-04 14:43:08
- A Whole New Business Platform for Thailand's PCB and Electronics Manufacturing Chain, Intelligent Asia Thailand Thailand PCB and Electronics Manufacturing Exhibition / 2024-02-29 11:18:22