Myanmar rice prices drop as exports fall
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Rice prices in Myanmar have dropped due to shrinking export to Bangladesh, according to sources of paddy traders.
Both illegal and legal trades between Myanmar and Bangladesh have been suspended since the communal violence in Rakhine state in June.
Although some of the regular legal goods have been exported to Bangladesh since the end of October, illegal trade is still banned and local rice prices are down due to the banning of illegal trade, according to sources.
The prices of exported rice are US$350 (Bt10,500) per tonne. The reason why exporters prefer illegal trade instead of legal trade is that the export prices are not much different from local prices, according to sources.
Although neighbouring Bangladesh intends to buy rice from Myanmar, their offer price is much lower than expected. Moreover, rice in Rakhine state has only one growing season and the output of paddy is declining.
