The Philippines has requested to begin importing Myanmar rice, according to an official from the Ministry of Commerce. The country, which usually imports their rice from Vietnam, made the request through diplomatic channels. If the deal succeeds, Myanmar may overtake Vietnam in the Philippine rice market.
This is good news for the the Myanmar Rice Federation (MRF), which is looking to diversify its export markets away from China as it currently dominates 90 percent of the country’s rice trade. “MRF 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,” says secretary of the MRF, U Ye Min Aung.
The Philippine market, which imports over 2 million tonnes of rice per year and was the world’s third-largest rice importer in 2014 according to the US Department of Agriculture, would be a major boon to MRF which fears a slowing Chinese market. The World Bank predicts that China’s annual GDP growth will fall to less than 7pc by 2017. Indonesia has also struck a deal with Myanmar to import 300,000 tonnes of rice, despite reports that Myanmar’s first rice exports to Indonesia earlier this year were marred by pest infestation. Other potential buyers include the European Union, Japan, and Malaysia. During the 2016-2017 fiscal year, Myanmar has earned more than $86 million from the export of over 254,000 tons of rice.
