By Nyein Nyein
THE Myanmar Rice Federation (MRF) will declare at floor price for paddy this month. U Ye Min Aung, the chair of the federation, made the remarks at the MRF central executive meeting, held in the first week of March.
During the meeting, MRF stakeholders discussed matters concerning the export of rice and broken rice through the maritime and border trade routes, obtaining export quotas for rice, conducting trade through Government-to-Government agreements, forming region and state committees, registering rice mills, rice quality and standards, and the rice market.
Last year, the MRF had set the basic price of paddy (low quality variety) at K500,000 per 100 baskets (one basket is equivalent to 46 pounds). Merchants, mills, agents, and private companies, and MRF members purchased paddy at the set rate, if it met the prescribed criteria: 14-per-cent moisture content and a fixed percentage of impurities such as sand, weed, and small stones. If the market price was above the basic price, the merchants had to purchase paddy at the prevailing market rate. However, if the market price was below the basic price, they had to buy paddy at the floor rate fixed by the MRF, the federation had stated in a press release announcing the basic price.
The price of the most common variety of paddy usually drops during harvest. The MRF decided to set the rate to protect the interests of farmers working on a manageable scale.
According to last year’s press release, the MRF fixes the basic price depending on the production cost and benefit to farmers, as well as expected trend in future domestic and international market prices.
The MRF had also stated it would lead private millers and companies to promote the export market, and help farmers get a decent price during harvest time. (Translated by Ei Myat Mon)
