Philippines cancels
Myanmar rice consignment amid local protests
05 Aug 2020
Workers
seen stacking up bags of rice at a warehouse in Yangon. Photo: Shin Moe
Myint/The Myanmar Times
A rice export agreement between Myanmar and the Philippines has
fallen through after the latter came under pressure from local farmers,
according to Myanmar Rice Traders Association (MRTA).
The Philippines had agreed to two consignments of 75,000 tonnes of rice
produced in Myanmar earlier this year.
“We won the tender about two months ago. However, the Philippines cancelled
the consignment without any official reason. Apparently it is because of
protests staged by their farmers, so the permit wasn’t granted,” said U Aung
Myint, secretary of the MRTA. He added that consignments, which had been
negotiated at the government level, consisted of orders from private companies
in the Philippines.
Last year, Myanmar exported 150,000 tonnes of rice to the Philippines
for the first time.
Myanmar had previously participated in a bid to export 50,000 tonnes
of rice to the Philippines in 2017, but lost out to Vietnam. This year's tender
was offered to Myanmar, Thailand, India and Vietnam.
The development is taking place after the General Administration of Customs
of the People's Republic of China gave permission to 43 Myanmar companies to
export rice to China on July 10. After months of trade delays and restrictions
at the Myanmar-China border due to COVID-19, the companies, which will have to
register for permits to export rice to China, were given permission to do so
without limitations, the MRTA said.
“The companies can export as much as they want according to demand
from Chinese traders,” said U Aung Myint.
Philippines cancels
Myanmar rice consignment amid local protests
05 Aug 2020
Workers
seen stacking up bags of rice at a warehouse in Yangon. Photo: Shin Moe
Myint/The Myanmar Times
A rice export agreement between Myanmar and the Philippines has
fallen through after the latter came under pressure from local farmers,
according to Myanmar Rice Traders Association (MRTA).
The Philippines had agreed to two consignments of 75,000 tonnes of rice
produced in Myanmar earlier this year.
“We won the tender about two months ago. However, the Philippines cancelled
the consignment without any official reason. Apparently it is because of
protests staged by their farmers, so the permit wasn’t granted,” said U Aung
Myint, secretary of the MRTA. He added that consignments, which had been
negotiated at the government level, consisted of orders from private companies
in the Philippines.
Last year, Myanmar exported 150,000 tonnes of rice to the Philippines
for the first time.
Myanmar had previously participated in a bid to export 50,000 tonnes
of rice to the Philippines in 2017, but lost out to Vietnam. This year's tender
was offered to Myanmar, Thailand, India and Vietnam.
The development is taking place after the General Administration of Customs
of the People's Republic of China gave permission to 43 Myanmar companies to
export rice to China on July 10. After months of trade delays and restrictions
at the Myanmar-China border due to COVID-19, the companies, which will have to
register for permits to export rice to China, were given permission to do so
without limitations, the MRTA said.
“The companies can export as much as they want according to demand
from Chinese traders,” said U Aung Myint.
“The Ministry of Commerce will issue the licenses together with pest
clearance certificates when the companies permitted by China come to register.
An official letter has been released and we are working on some documents. The
procedures will be finalised this month,” he said.
Myanmar has yet to meet its 2.4 million-tonne rice export forecast in fiscal
2019-20 due to falling demand. Currently, just 2 million tonnes of rice has
been exported and it is expected that the remaining 400,000 tonnes of rice will
be exported from July to September, according to the Myanmar Rice Federation.
As at July 17, Myanmar's 2019-20 trade deficit had widened to more than
US$1.7 billion from US$718 million registered in the previous corresponding
period in 2018-19, according to the Ministry of Commerce. - Translated
“The Ministry of Commerce will issue the licenses together with pest
clearance certificates when the companies permitted by China come to register.
An official letter has been released and we are working on some documents. The
procedures will be finalised this month,” he said.
Myanmar has yet to meet its 2.4 million-tonne rice export forecast in fiscal
2019-20 due to falling demand. Currently, just 2 million tonnes of rice has
been exported and it is expected that the remaining 400,000 tonnes of rice will
be exported from July to September, according to the Myanmar Rice Federation.
As at July 17, Myanmar's 2019-20 trade deficit had widened to more than
US$1.7 billion from US$718 million registered in the previous corresponding
period in 2018-19, according to the Ministry of Commerce. - Translated
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