A case of rice and death in Myanmar

Myanmar, a developing country, is highly dependent on exports of raw materials, whose agricultural exports represent nearly 10%.

According to a recent Bloomberg report, the Myanmar Rice Federation had set a goal of at least doubling the amount of rice exports in three years..

Similar efforts have was done in the past butthis time, thethere will be quality-driven, according to the report.

Fall of optimism

Since the military coup in 2021, it is safe to say this every positive metric had worsened, Due to which ensues turmoil. As the troubles continue and a global recession loomssbusinesses are uneasy to say the least.

"The rice industry, like all other sectors, was hit hard under new management, or lack of. All entries, such as fertilizerssuh, fuel and pesticides, who go into agriculture haIsignificantly increased pricewhile export rice prices haI notoht increased as much as input prices, due to fixed exchange rate (against the US dollar) set to 1,850. Even take into account inflation and reduced supply, due to some areas of Mandalay and Sagaing being unable to harvest paddy as well as many farmers who choose to use less fertilizersuh and pesticide than recommended, paddy prices haI not yet reached the levels they or they should and, As such, farmers beware ofplanting for the new crop,” said Xa major agricultural business owner who requested anonymity.

According x, industry was developing well before the coup, especially with regard to farmers and millers turning to mechanicsseducation systemsto add “Many rice millers were investing in new machinerythere. Also invest abroadwe, such as CP based in Thailand, in the rice and animal feed sectors were interested in Walk ining the market before the coup.

Myanmar plans to double exports by 2025, of about 2 million tons currently, gaining, in theory, up to $1.5 billion.

Strict new policies

The direct and most visible result of the 2021 coup can be seen in the battles fought.

As opponents of the military grow stronger and gain increasing dominance in rural areas, the current administration has a stranglehold on full quell the threat that might overthrow them.

If it remains to be seen which team will emerge victorious, which IIt is certain that the majority of battles take place in rural areas, where most agricultural land is located.

Several attempts have been made to ward off economic problems, such as strict foreign exchange controlthat’s to sayin particular the American greenback, and the dependence at the topon their.

X says, however, this this was largely detrimental overall.

“Myanmar has always run a trade balance deficit. So, even under normal circumstances, we have to rely on exports to obtain foreign currency to import. Now, with fixed exchange rates, many exporters chose not to export and, As such, the currency supply has been reduced. As a result, importers also face difficulties, which decreases the supply of basic necessities (essence, diesel, edible oil, wheat and fertilesuh) and thIs increasesare the prices of these imported items.

While the United States$ against the Myanmar Kyat is strictly maintained at 1$ for 1,850MMK by Central Bank of Myanmar, full Kyat conversion policy from otherrunningthat’s to say (e.g. baht for border trade with Thailand) in a single day was relaxed within a one month time window for conversion.

Doom and dark

Asked what could be done, X thinks the problem lies in leadership.

“Frankly, the third question is very subjective and quite difficult to answer, but, as someone who believes in free trade, I think this easing foreign exchange and import restrictions may improve things a bit, but there is also the problem of super inflation, if there is is little or no restrictions. More importantly, the only way for the economy to get back on track is to restore confidence in the current leaders. Currently, it is very difficult to plan ahead for businesses.

According to the Food and Agriculture Organization of the United Nationssation, Myanmar faces a growing food security crisis, with nearly 25% of its 55 million people moderately or severely affected. He also said agricultural input prices are rising, with fertilisers costing more than three times as much that in 2019 and high quality seeds are either unaffordable or downright unavailable.

“Sooner or later we won’t have a lot of imported goods. Breadand pastries will not be plentiful. Goods in supermarkets will be scarce. Vehicle prices will be as those from 10-12 years ago,where Myanmar may be the only country whBefore car prices depreciaten/a, Sadly, this may just be the beginning.

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