Rice is the staple diet of over 3 bil- lion people worldwide, close to half the global population, and over 11% of our planet’s arable land is given to rice cultivation. Rice is an essential part of Myanmar cuisine as well, and the country with its abundance of land, water and labor resources, provides the perfect rice-grow- ing environment. Little wonder then, that Myanmar was the world’s top rice exporter between 1961 and 1963, a position it subse- quently lost to Thailand, and today, is the 9th biggest rice exporter.
As the sixth largstructure or irrigation facilities.
Additionally, paddy procurement prices were kept at low levels by the government and this severely discouraged investment in rice cultivation, and even more so in rice milling and storage facilities desperately needed to secure the ready crop. Low pro- curement prices for premium varieties like Basmati, deterred farmers from growing them. Though the total area under rice cul- tivation continued to expand, the expansion rate was so slow that even in the 1960s, it remained lower than pre-war levels. A ma- jor setback to rice production was due to the government banning private money lenders from funding farmer needs, which left the latter without resources to buy essential in- puts, and the government also did nothing to meet their credit requirements for a long time. It was only in 1976 that the Myanmar Agricultural Bank was set up. Progress, if any, has been very gradual. This perhaps explains why paddy yield per hectare did not increase for nearly two decades since 1980. Technical advancement and introduc- ing machinery and equipment to mechanize the rice-growing process are limited to very small areas, even today.
structure or irrigation facilities.
Additionally, paddy procurement prices were kept at low levels by the government and this severely discouraged investment in rice cultivation, and even more so in rice milling and storage facilities desperately needed to secure the ready crop. Low pro- curement prices for premium varieties like Basmati, deterred farmers from growing them. Though the total area under rice cul- tivation continued to expand, the expansion rate was so slow that even in the 1960s, it remained lower than pre-war levels. A ma- jor setback to rice production was due to the government banning private money lenders from funding farmer needs, which left the latter without resources to buy essential in- puts, and the government also did nothing to meet their credit requirements for a long time. It was only in 1976 that the Myanmar Agricultural Bank was set up. Progress, if any, has been very gradual. This perhaps explains why paddy yield per hectare did not increase for nearly two decades since 1980. Technical advancement and introduc- ing machinery and equipment to mechanize the rice-growing process are limited to very small areas, even today.
Efforts to regain lost glory
Agricultural experts are convinced that Myanmar has the potential of doubling its rice production, and there is sufficient room for quality improvements. Since Myanmar rice is $10-20 cheaper than rice of equivalent quality from other countries, capturing a seg- ment of the export market may prove easier, especially for its 25% broken, Emata variety.
At present, Myanmar exports rice in large quantities to Australia, Singapore, Thai- land, China, and India, besides having re- sumed exports to Japan after 45 years. The EU has opened its markets for duty free imports from Myanmar. The vast, relatively untapped market of Africa, has started im- porting Myanmar rice, and has the potential to annually absorb thousands of tons more. According to sources, a surge in demand for rice from Russia has helped in enhancing rice exports by 41% between April and 15th August, 2014, as compared to the same pe- riod last year.
Due to the interplay of previously listed factors, productivity of rice is low as com- pared with global producers. The average yield of rice is 3 tons per hectare, which is half of the 6 tons per hectare yield in Japan. The yield is adversely affected by wastage at post-production and pre-consumption stages. Uneven distribution of inputs and dated farming skills also has an adverse im- pact on production.
There is a fervent need to improve cultiva- tion in existing fields, modernize existing ir- rigation infrastructure and build new facil- ities, convert more land for rice cultivation, provide farmers with agricultural credit and also help them procure essential inputs like fertilizers, pesticides and stronger seedlings from high quality seeds. The need for tech- nical development is severe, and farmers need to begin proper crop management, and the government will have to invest in physical development by building access farm roads, provide harvesters, dryers, stor- age and milling facilities. This is imperative for an economy dependent so much on ag- riculture.
Successful initiatives and Myanmar’s potential
Myanmar may well succeed in regaining its top position in rice exports even though this target may take more than a decade to achieve. This is because it possesses the most favorable natural environment for rice cultivation with abundance of land, water and cheap labor that are the essential pre- requisites for this crop.
Efforts to reverse the damage witnessed in the aftermath of World War II, began through multiple initiatives taken by the government to revive the rice industry. An attempt to introduce the high yielding va- riety seeds released by the International Rice Research Institute through imports in 1968-69 was not well received, since the short height of the plants made them inappropriate for the flooded rice fields of the country, and the taste was also not ac- ceptable to local palettes. The government’s tractor scheme also failed since small sized farms could not afford to use them, both due to impracticality and cost.
Policy changes began in the 1970s which led to doubling of rice procurement pric- es, increased procurement levels, offering credit through the Myanmar Agricultural Bank, and establishing connections with the International Rice research Institute. The Township rice production program initially launched in Shwebo and Taikke in Upper and Lower Burma respectively, was highly successful due to the new technology intro- duced.
It was only in 2010 that the setting up of Myanmar Rice Industry Association has fi- nally brought together producers, traders and millers and it now works in tandem with the Ministry of Commerce to manage rice exports. Serious efforts are being made to foster public-private partnership. The De- partment of Agricultural Research (DAR) is encouraged to maintain contact with inter- national rice research institutes to gain ac- cess to improved high yielding variety seeds that are then transferred to the seed divi- sion, a subsidiary of the Myanmar Agricul- tural Service (MAS). The Seed Division then uses its 32 seed farms across Myanmar to reproduce these seeds on mass scale. Hybrid variety seeds have already been introduced in parts of Shan State and Nay Pyi Taw.
Non-governmental organizations are ac- tively involved in educating farmers and contributing to enhancing farm output with a long term perspective. The principal idea has been to educate farmers about effective and optimal pesticide use, handling weed- ing problems, improving soil fertility, and use appropriate agricultural tools while pro- tecting the environment. A project funded by UNOPS-managed Livelihoods and Food
Security Trust Fund (LIFT), and run by the Metta Development Foundation, has led to the setting up of 200 farm field schools in Shan and Kachin states to promote sus- tainable agricultural productivity. This has helped over 4700 rural households increase their rice production, which also translates into improved levels of earning and better living standards.
With earnest efforts in place, it is only a matter of time before the industry catches up with neighboring rice producing nations. The long and winding road to becoming a leading rice exporting nation will require a multi-pronged approach by the govern- ment, starting with improvements in in- frastructure like, developing better port facilities, handling land ownership issues, introduction of easier credit facilities and assistance in use of technology for agricul- ture. On the finance front, it is important to change farm credit rules and permit other assets to be pledged as collateral for loans. Direct foreign investment in milling, ware- housing and trading will bring the much needed foreign exchange to modernize the farm sector.
Myanmar is likely to see a part of the $80 million World Bank aid that the country re- ceived after a gap of 25 years in 2012, invest- ed in agricultural infrastructure, which when combined with diverse farming techniques, is likely to push rice exports to 3 million tons by 2015, and 4 million tons by 2020.
