September 22, 2022
Myanmar’s broken rice exports to China brought in a decent income on account of Kyat devaluation against Yuan, said U Min Thein, vice-chair of Muse Rice Wholesale Centre.
At present, export value of broken rice to China is 128 Yuan per 50-kilogramme bag. A Yuan is exchanged at K450 in the local forex market, pushing up the price of broken rice.
“The price is high on the back of strong demand by China. Exporters are prospering as Kyat is weakening against Yuan. Therefore, broken rice is transacted even if the prices touched a high of K41,000-42,000 per bag. The weaker domestic currency stimulates export and increases export earnings. The market price of broken rice hit 128 Yuan per bag,” U Min Thein elaborated.
Tracking the commodity price hike in domestic markets, broken rice price also increased to K39,000 per 108-pound bag, according to the rice wholesale centre (Wadan).
“Following detection of the coronavirus, Chinese officials issued a lockdown order in Ruili to contain the virus. However, the Kyinsankyawt border between Myanmar and China is open as usual. About 70 trucks of goods including rice and broken rice are daily leaving for China via the Muse border. Approximately 30 truckloads of goods are imported by China as well.
“Trade is going as usual. Despite the lockdown imposed in Ruili, the Kyinsankyawt border post is not suspended. Myanmar daily conveys rice, broken rice, pulses, rubber, fishery products and food products with 70 trucks to China. Meanwhile, building materials, electronic devices, fertilizers, equipment, food products and pharmaceuticals are brought into the country with around 30 trucks. Therefore, we see over 100 trucks flowing in and out of the zone every day,” he continued. Approximately 25,000 bags of rice and broken rice are sent daily to China via the Muse border.
Earlier, the daily export volume to China through Muse was estimated at 60,000 bags of rice and broken rice. Exports drastically fell in cross-border trade compared to the previous years.
Myanmar shipped about 890,000 tonnes of rice and broken rice to foreign markets between 1 April and 31 August of the current financial year 2022-2023, with over 780,000 tonnes delivered by sea and over 100,000 tonnes exported via land borders. Myanmar generated over US$700 million from rice exports in the previous FY2020-2021, with an estimated volume of about two million tonnes. – NN/GNLM