Lifting Rice Controls: More Questions Than Answers

Description: 

"Burma?s new rice trading policy change is a step in the right direction but several questions remain unanswered... On April 24, one week after the Burmese Buddhist New Year, Secretary Two of the ruling State Peace and Development Council (SPDC) Lt-Gen Soe Win issued a statement that scrapped Burma?s 30-year-old state rice procurement policy which was introduced by Ne Win?s regime on Oct 10, 1973. Beginning from the next harvest, before the end of this year, the government will no longer buy paddy directly from farmers. At the same time, the government announced a new trading policy, which stipulates: "All nationals have a right to trade rice. The price will be according to the prevailing rates, and monopolizing the rice trade will not be allowed for anyone or any organization." Citizens are now free to participate in the domestic rice trade. As far as rice exports are concerned, however, citizens will have to follow the three guidelines set by the newly formed Myanmar Rice Trading Leading Committee (MRTLC): rice will only be exported when it is in surplus, exporters must pay a ten percent export tax, and the net export earnings after taxes will be shared between the government and rice exporters on a 50-50 basis. Rice trading associations will buy rice directly from farmers and then sell to the Myanmar Agricultural Produce Trading (MAPT), which then distributes rice to the armed forces at cost. The MRTLC comprises ministers from related economic sectors with participation from private sector representatives from organizations such as the Union of Myanmar Federation of Chambers of Commerce and Industry (UMFCCI), the Myanmar Rice Traders Association and the Myanmar Rice Millers Association. The junta is optimistic this policy change will put Burma?s rice sector back on its feet..."

Creator/author: 

Min Htet Myat

Source/publisher: 

"The Irrawaddy" Vol 11, No. 4

Date of Publication: 

2003-05-00

Date of entry: 

2003-07-02

Grouping: 

  • Individual Documents

Category: 

Language: 

English

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