China likely to import up to 2 mln rice bags by 2021

The rice traders predict that China is likely to grant import of rice up to 2 million bags by 2021 in consideration of growing domestic demand, said U Min Thein, Vice-Chairman of Muse Rice Wholesale Centre.

Typhoon hit three provinces of China this year, resulting in damaging the paddy and maize fields severely. Likewise, Viet Nam, which China buys rice from, has also been affected by typhoon with their paddy fields badly damaged. Although China issued a permit for import of 500,000 rice bags from Myanmar in 2020, China is likely to grant the import of 2 million rice bags in 2021, he added.

“Two or three provinces of China were hit by the typhoon. So, the paddy and maize fields were badly damaged. The farmlands in Viet Nam were also adversely affected by the typhoon. Earlier, the Vietnamese rice was imported to China. Now, Viet Nam could not export their rice to China, which needs to buy rice for their local consumption. Now, we can export rice to China legally. In the 2019-2020 financial year (FY), China granted a rice import quota of only 500,000 bags for Myanmar. The rice quota system for Myanmar started on 15 January and will end on 31 December 2020. In 2021, the quota system will be started on 15 January, and we predict that China will grant 2 million rice bags quota for Myanmar,” he explained.

Furthermore, the Chinese government is implementing the legal trading system and has allowed making of registration for granted rice export licences to 43 Myanmar rice companies and 79 rice mills in July. Earlier, the Chinese government issued permits to only 11 rice companies from Myanmar.

“Myanmar rice export could be stronger. Last year, the People’s Republic of China approved only 11 rice companies in the border areas. In July 2020, China granted 43 Myanmar rice companies. Previously, the permit price was rather high. Now, the permit price dropped as China granted the rice import licence to more companies. It will be more beneficial to the rice traders,” said U Min Thein.

According to the official data of MRF, Myanmar exported over 2.5 million tonnes of rice and broken rice in 2019-2020FY, earning US$794.388 million.

Myanmar exported over 2.4 million tonnes of rice in the 2019-2020 financial year, reaching the set target. Myanmar will target to export 4 million tonnes of rice in the 2020-2021 budget year, said Vice-Chair U Aung Than Oo of the Myanmar Rice Federation (MRF).

(Translated by Hay Mar)