Ministry of Commerce will grant loans to Myanmar Rice Federation (MRF) for the purchasing of rice

The Ministry of Commerce is planning to grant loans totaling K15 billion to the Myanmar Rice Federation (MRF). With these funds, the MRF will purchase unhusked rice; currently, the market price is lower than the floor rates set by the government and the MRF.

Currently, the local rice market is experiencing sluggish demand, which has lowered prices. With the loan, which is set for terms of 120 days, the Myanmar Rice Federation will attempt to both reduce financial losses for farmers and stabilize the market price of rice.

According to U Aung Htoo, Deputy Minister of the Ministry of Commerce: “Despite lower rice prices, we can’t buy the unhusked rice at the price floor we set. The Myanmar Rice Federation bought the unhusked rice from farmers at a price lower than the floor rate. Now, they have requested the loan so that they can buy more rice.”

Furthermore, co-op associations are also planning to buy the unhusked rice to help fluff the market up a bit. The federation’s request for a loan is under consideration, and if approved it will be granted through the Myanmar Economic Bank.

U Aung Htoo added: “At the moment, rice prices are lower than usual, and the quality of the rice is also not great. The required quality set by the Myanmar Rice Federation is 14 percent moisture content. As it stands, the rice is at 19 percent moisture content.”

Earlier this year, 18,000 tons of Myanmar rice was destroyed at the Ivory Coast because it was unsuitable. China has also blocked the import of Myanmar rice as part of its efforts to deter illegal trade.

During the 2016-2017 fiscal year, Myanmar exported 1.7 million tons of rice; during FY 2017-2018, it exported 3.6 million tons; from April 1, 2018 through March 2019, it exported 2.11 million tons.

(Myanmar Business Today: https://www.mmbiztoday.com/articles/ministry-grant-loan-myanmar-rice-federation-purchase-rice )

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