Myanmar plans to export rice to the Philippines, not to rely on only the China's market

Myanmar is in discussions to export rice to the Philippines, as it looks to diversify away from the Chinese market, according to U Ye Min Aung, secretary of the Myanmar Rice Federation (MRF).

The federation is working toward developing multiple export markets for domestic rice, he told media on July 15. “MPF believes that relying on exports to a single market will lead to difficulties in the long-term, so we need to diversify. The Philippines has shown a continuous interest in buying Myanmar rice, so we will try to export it during this year’s rice season,” he said.

China has long been the largest importer of Myanmar rice, accounting for around 75 percent of the market, despite an import ban by Beijing which was only lifted this April. However, trade with China has recently slowed, following the arrests of several Chinese buyers on the Myanmar border.

Much of the rice trade between the two countries is conducted through the border point of Muse in Shan State, which adjoins Ruili in Yunnan province, China. The buyers were arrested for tax evasion.

“Just six or seven Chinese buyers came and bought today. China is Myanmar’s main rice export market, so Myanmar is at risk if something happens there,” said U Aung Than Oo, vice chair of MRF, on July 15.

Rice exports from Myanmar to China have grown exponentially over the past decade, but the growth of the market may stall as China’s economy slows. GDP growth in China has fallen from 10.4pc in 2011 to 7.4pc in 2014. Annual GDP growth is likely to fall to less than 7pc by 2017, according to the World Bank.

The Philippines is one of the world’s largest rice importers, so Myanmar’s rice export prospects would be improved if trade links to the archipelago could be secured, said U Aung Than Oo. The Philippines was the world’s third-largest rice importer in 2014, behind China and Nigeria, according to data from the US Department of Agriculture.

Negotiations are now under way between the MRF and the Philippines’ National Food Authority, as well as between the Myanmar and Philippine governments, said U Aung Than Oo. “The two governments are discussing a memorandum of understanding,” he said.

The Philippines imports more than 2 million tonnes of rice per year, and Myanmar would ideally export around 200,000 tonnes to the Southeast Asian economy, said U Ye Min Aung. However, the Philippines is better linked with Vietnam in terms of logistics, so Myanmar must work hard to secure a market share, he said.

Myanmar is also in negotiations to export rice to European Union countries, and is trying to increase exports to Indonesia, Japan and Malaysia. In fiscal year 2014, Myanmar exported 1.19 million tonnes of rice – exports to China accounted for around 80pc, according to data from the Central Statistical Organisation.

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