China to help build rice mills

The Myanmar Rice Miller Co, founded under the Millers Association (MRMA), recently signed a contract with China’s CAMC Engineering Co (CAMCE) to build international-grade rice mills in Nyaungdone, Ayeyawady region.

“Under the agreement, both sides will cooperate on the construction of the international-standard rice mills. Afterwards, we will carry out rice grinding and then export quality rice to China as well as to other international markets,” said Nay Lin Zin, joint secretary of the MRMA.

Construction will start this year and is due to be completed by 2017.

“We have bought the land plots for the first rice mill in Sarmalauk in Nyaungdone, and we will build two 200-tonne rice mills in the initial phase,” Nay Lin Zin added.

Under a deal between the Myanmar Rice Federation (MRF) and the Chinese firm COFCO, China will purchase 100,000 tonnes of rice at market price after the completion of the work. The MRF will coordinate the direct sale of rice with COFCO, with both sides preparing the grinding and export of the rice types and qualities favoured in China.

The plan is in line with one of the recommendations by the World Bank that Myanmar should modernise its rice mills to increase private stocks and trigger productivity and quality improvement at the farm level.

Although Myanmar’s rice exports amounted to 1.4 million tonnes, rice exports to Southeast Asia – the Philippines, Indonesia and Malaysia – are still modest, according to MRF.

China remains Myanmar’s major rice buyer, buying nearly 1 million tonnes this fiscal year alone.

“We have planned to extend to Europe. We will display rice and agricultural products, including fishery, livestock and forest produce in trade fairs in Italy,” said Ye Min Aung, the general secretary of MRF.

The MRF has cooperated with other agribusiness owners to improve agricultural crops and equipment in order to promote the country’s exports. With the implementation of these plans, officials expect rice exports to increase in the coming years.