Myanmar [Burma] Grain & Cereals insights

According to the import and export announcement No. 2/2025 issued by the Trade Department of Myanmar's Ministry of Commerce on June 9, 2025, 97 agricultural products, including rice and legumes, will be incorporated into an automatic licensing system for export. Under this system, licenses will be automatically issued without further review by the Trade Department, in contrast to the previous non-automatic licensing system that required traders to apply for and obtain approval before receiving a permit.

Currently, summer rice market prices show that only slightly over 1 million Myanmar kyat can be obtained per 100 baskets (about 50 pounds). With declining rice yields, rising harvester rental fees, and other conditions, farmers face a loss situation where they cannot recover planting costs. Therefore, most farmers have decided not to fully plant their own farmland, but instead reduce rainy season rice planting scale and minimize planting costs as much as possible. A farmer from Bago Province's Pyinmana Township said, "This year's summer harvest fees are as high as 200,000 Myanmar kyat, with threshing fees at 50,000. Weather disasters and pest damage meant our seven-household joint farming plot only produced 40 baskets of rice, with no return. The harvested rice cannot even cover harvesting fees, with labor and time completely wasted. Machinery, fertilizer, herbicides, and rice seeds were all losses. Not a single penny of capital was recovered, making this the most severe loss year. Seeing rice prices continuously low, we dare not continue planting rainy season rice. With these market conditions, losses are certain, so we do not plan to plant the entire land and will let some farmland lie fallow." Planting rainy season rice requires at least 800,000 Myanmar kyat per acre (excluding mature period harvest fees). Based on current prices of just over 1 million Myanmar kyat per 100 baskets, even with 80 baskets per acre, costs cannot be covered. Therefore, farmers are reducing acreage, reducing pesticide use, and minimizing expenses. Farmers in Ayeyarwady Province stated, "This is a year of massive farmer losses, with rainy season rice stockists and summer rice growers all losing money. Now everyone fears planting rainy season rice. Unless 100 baskets can sell for over 1.6 million Myanmar kyat, there is absolutely no profit. Although rainy season precipitation is abundant and wild rice has grown, we have decided to abandon those fields." Besides falling rice prices, domestic conflicts and regional instability may also lead to reduced rainy season rice planting areas. In the current rice market, not only are newly listed summer rice prices declining with low trading volume, but last year's stored rainy season rice prices are also continuously dropping, with

International market demand and price fluctuations also influence domestic market price changes. As Myanmar's primary agricultural crop, rice export volumes have increased in recent months due to rising demand from ASEAN member countries Philippines and China. Despite relatively low rice prices in the international market over the past few months, Myanmar's export volumes continue to grow. In April and May of this fiscal year, Myanmar's rice exports exceeded 400,000 tons, more than double the same period last year (over 180,000 tons). Although export volumes have increased, domestic paddy rice prices remain between 1.2 million to 1.7 million Myanmar kyat per 100 baskets due to weak international rice prices, while high-quality rice prices are around 2.2 million Myanmar kyat per 100 baskets. Currently, when exporting rice to neighboring countries, Myanmar cannot fully utilize border trade due to land transportation difficulties and primarily relies on maritime trade channels. Despite growth in rice and broken rice exports, domestic paddy rice prices remain between 1.2 million to 1.75 million Myanmar kyat per 100 baskets due to regional and quality differences, with high-quality rice priced at 2.2 million Myanmar kyat per 100 baskets.