This Background Paper is an integral part of the Diagnostic Assessment. It involves an assessment of the Myanmar rice value chain within the context of the Myanmar rice industry. Special focus is paid to its structure and performance, dynamics, and future prospects. Also included is a consideration of its weaknesses and constraints that had influenced the development of the industry as well as an evaluation of the prospect of improving the value chain and consequently the industry and suggesting crucial steps that should be taken for the short game and the long game. Basically, the report integrates the findings from intensive literature review and desk research coupled with observations and interviews conducted during field visits in October and November 2012 and supplemented by persona communication with key players in the public and private sectors as well as civil society at various levels of the rice value chain.