The Myanmar Rice Federation (MRF) and China’s state-run agri business company COFCO Ltd signed a memorandum of understanding to export up to 100,000 tonnes of rice to China in accordance with market prices at the time of shipment, said an official from MRF.
The agreement aims to prevent losses from both sides, as Myanmar cannot export 100,000 in one shipment, rather it must export via monthly shipments.
“Myanmar’s annual rice export to China may not be exactly 100,000 tonnes, and we cannot export all in one shipment. Therefore, prices of every shipment will be based on the market price at time of shipment to ensure a fair trade for both parties,” said U Nay Lin Zin, joint secretary of the Myanmar Rice Millers Association.
Under the agreement between MRF and COFCO, China’s General Administration of Quality Supervision, Inspection and Quarantine (AQSIQ) will first finish the rice export inspection and accreditation, and approval must be gained from China Certification and Inspection Group. When those hurdles are completed, the shipments can be exported.
“We will start exporting rice in April, as CCIC will be busy during the Chinese New Year holidays, and March is the harvest period for the Chinese rice crop,” said U Nay Lin Zin.
MRF is preparing to ensure systematic production of rice to meet the quality and variety demands of the Chinese market. MRF also expects to establish an official rice trade with China in which small and medium scale rice producers, millers, and traders can participate.
Myanmar exported 1.1 million tonnes of rice in the first nine months of the 2014-2015 fiscal year, of which 800,000 tonnes were exported to China through the border trade points.
Source: Myanmar Business Today