Wednesday, 01 February 2012 13:45 Mizzima News
The country’s rice harvest this year may more than double to 1.5 million metric tons, according to Myanmar Rice Industry (MRI) officials quoted by Bloomberg Businessweek.com.
“Myanmar coming into the market will take away some markets from Thailand, worsening Thai rice exports,” Vichai Sriprasert, the honorary president of Thai Rice Exporters Association was quoted as saying. “In the long run, Myanmar has the potential to become the top exporter because of its fertile land and water.”
The news service said MRI officials said that as “the government will purchase production at above-market prices to encourage greater planting, shipments may increase to as much as 2 million tons next year and reach 3 million tons by 2015.” Sales totaled 700,000 tons in 2011.
If realized this year, the increase in rice production could position Burma as No. 6 in the largest rice exporters; five decades ago, Burma was the world’s No. 1 rice exporter.
The increase in planting has been driven by a government policy of buying rough rice at about 10 percent above the market rate, starting early this year.
Bloomberg Businessweek said that while local consumption accounts for 11.5 million to 12 million tons per year, total milled-rice output may increase 11 percent to 13.5 million tons in the year that started in October, and climb to 15.5 million tons over the next three years, the association said in an e-mail. Target markets for white-rice sales are Africa, Indonesia and the Philippines, it said.
Burmese President Thein Sein’s government has embarked in a long-term move toward democracy by releasing political prisoners, engaging with the political opposition and opening up extensive talks with the U.S., the European Union and Asian nations.
The country is the “most promising” Asian market over the next few decades if the government continues its reforms of the political and financial system, U.S. investor Jim Rogers was quoted as saying in November.
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