Farmer work in the paddy field in Shan State. (Photo: Reuters)Increases in the price of rice in Burma's markets halted on Wednesday after Ministry of Commerce warned traders to keep prices stable in order to slow inflation.
The warning comes as inflationary pressures increase following a round of salary increases for civil servants. Rice prices rose steadily this week and rumors circulated that electricity charges were to double.
The domestic price for 25 percent broken export rice increased this week from 13,500 kyat (US $13.5) a 50 kg sack to 13,900 kyat ($13.9), and the price for high-grade Ziya export rice rose from 17,000 kyat ($17) to 19,000 kyat ($19).
Last year, Burma sold 25 percent broken rice at $270-$280 per tonne free on board (FOB), compared with $348-$353 quoted for a similar Vietnamese variety.
In the fiscal year 2007-08, Burma's rice exports were a meager 358,500 tons, much of it to Africa.
The country's rice exports fell after Cyclone Nargis struck in May 2008 and the Burmese junta banned exports to preserve stocks. The ban, however, was eased in July 2008.
Currently, Burma has been endeavoring to expand its international rice market especially to countries of the European Union, according to China's Xinhua news agency.
Increases in the price of rice and other goods were expected following an across-the-board salary increase of 20,000 kyat ($20) for civil servants and military staff earning between the lowest monthly wage of 15,000 kyat ($15) and 200,000 kyat ($200).
Burma has an estimated 20,000 government staff working at 30 ministries, according to the AFP news agency.
Among recent price rises was a doubling by the Myanmar [Burma] Post and Telecommunication Enterprise of the call charge of mobile phones from 25 kyat ($ 0.025) to 50 kyats ($ 0.05) per minute, which came into effect on Jan. 1.
Source : http://www.irrawaddy.org/highlight.php?art_id=17574
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