Myanmar is targeting to export up to 4 million tons of rice worth US$1.5 billion by 2020, according to Myanmar Rice Federation (MRF).

It exported about 590,000 tons of rice and broken rice from October 1 to early January in 2018-19 FY, according to Ministry of Commerce.

However, the rice sector in Myanmar faces many challenges due to instability in the border market with China and EU.

Over one million ton of rice will be reduced from rice export in this year, according to rice traders.

Myanmar exported about 3.6 million tons of rice in 2017-18 FY as it found new markets for rice export and it broke the record in over 50 years time.

Although Myanmar earned about US$580 million from 1.7 million tons of rice export from April to at the end of December in 2018, it earned over US$210 million less in compared with the same period in last year export, according to the MRF.

Myanmar earned US$578 million from 1.717 million tons of rice and broken rice export from April 1 to December 29 and it earned US$789 million from 2.542 million tons of rice and broken rice export in the same period in last year.

“We are sure that the amount of rice export in this year will not be reached last year amount as demand is declined in the world market,” said Aung Than Oo, Vice Chair of the MRF.

The European Union (EU) has imposed tax for three year starting from January 8 for long-grain rice from Myanmar and the amount of rice export to the EU will be reduced commensurately.

The rice export will also be reduced in this year due to a decline in China and EU markets.

Myanmar is expected to earn US$15.3 billion from export sector in 2018-19 FY, said Khin Maung Lwin, Assistant Secretary from the ministry.

It earned US$3.7 billion from export sector from October 1 to January 4 in 2018-19 FY. Myanmar earned US$3.5 billion from export sector in the same period in last fiscal year.