Traders acknowledge the progress made, but see years of hard work ahead if that dream is to be realised, and the head of the newly formed Myanmar Rice Industry Association (MRIA) agrees.
"Myanmar has far higher potential for rice production than our neighbours Thailand and Vietnam, but we still have a lot to do to develop our rice industry like theirs," MRIA chairman Chit Khine told Reuters.
Thailand, the world's top rice exporter, shipped 8.57 million tonnes in 2009 after a record 10 million in 2008. Vietnam, the second biggest, exported 6 million tonnes in 2009.
The United Nations' Food and Agriculture Organisation (FAO) said Myanmar exported 800,000 tonnes in 2009, but private surveyor SGS (Myanmar) Ltd. puts the total at 1.03 million tonnes, a jump from 547,000 in 2008.
"Most of our rice went to West Africa and there is growing demand for it, with our enticing prices," SGS Managing Director Kyaw Tin said.
"Now we can export about 800,000 tonnes annually without any concern for domestic sufficiency," he added.
He reckoned about 300,000 tonnes of the 2009 total was grain carried over from 2008, when exports were halted after Cyclone Nargis hit the country's rice bowl Irrawaddy region, killing over 134,000 people plus 200,000 animals used in the fields.
In its best year, 1934, when it was called Burma and was the world's top exporter, Myanmar shipped 3.4 million tonnes.
The rice sector fell into decline because of mismanagement under a socialist government from 1962 to 1988 and the country has also suffered from trade sanctions imposed by the West because of its human rights record.
The military regime in power since 1988 has tried to revive the sector and has just formed the MRIA by merging associations of growers, millers and exporters with a think tank grouping independent economists and technocrats.
LOW YIELDS
Average yield per acre of paddy (unhusked rice) in Thailand and Vietnam was about 200 baskets -- one basket is about 46 pounds (21 kg) -- compared with just 60 baskets in Myanmar, the MRIA's Chit Khine said.
"Although they annually export about 10 and 6 million tonnes respectively, it doesn't have any impact on their domestic market. In our case, if we boost exports to around 1 million, the impact will be felt," he said.
Developing the agricultural sector was the best way to raise the living standards of the population, 70 percent of whom are farmers or their families, the 62-year old businessman said.
"One crucial thing we are doing is collecting correct and accurate data on sown acreage, yields, domestic consumption, the flow of rice, etc. Without correct and accurate data, it's difficult to adopt correct policies," he said.
There is no official forecast for Myanmar's 2010 rice exports. The FAO forecast in December that it could ship 1 million tonnes due to abundant supply and demand from Africa.
After being severely hit by Cyclone Nargis in 2008, Myanmar's rice sector has now recovered and the current 2009/10 crop could produce around 31.5 million tonnes of paddy, giving around 19.8 million tonnes of milled rice, according to the FAO.
Traders agreed that exports should rise this year, especially as prices were competitive, compared with Thailand and Vietnam.
Myanmar's 5 percent broken grade white rice was quoted at around $350 per tonne, well below the $430 paid for the same grade in Vietnam and $540 in Thailand.
"That's Myanmar's advantage, allowing it to sell more rice this year, especially to customers in Africa that can't afford high-quality grades," said a trader at an international house in Bangkok that deals with Myanmar.
But traders also listed multiple disadvantages -- poor logistic systems, an absence of quality control, late shipments as well as the mismanagement of fertilisers.
"It's possible that Myanmar could become a major exporter of rice, but it would take a very long time to achieve its dream," another trader said.
Chit Khine said the MRIA was addressing the problems.
"Our short-term strategy is to increase yield per acre by mechanising the industry, using quality seeds and more fertilisers and so on," he said, adding that sown acreage would be increased only in the long run.
Myanmar's low yield is generally attributed to low use of chemical fertilisers. According to FAO data, Thailand uses about 6.8 times more fertiliser per acre than Myanmar, while Bangladesh and Vietnam use 6.3 and 5.8 times more respectively.
Source :http://www.flex-news-food.com/pages/28486/rice/myanmar-plans-reforms-revive-rice-sector.html
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