The destruction of tonnes of rice from Myanmar by Ivory Coast enables Myanmar rice to get a bad reputation in the global market. Time has come to review the overall rice export sector, said Aung Htoo, Deputy Minister for Commerce.
Yangon-based Singaporean Olam International Co., Ltd bought rice from three companies from Myanmar. The company bought 13,500 tons from Shwe Wah Yaung, 80,000 tons from the MEC and 500 tons from Ayeyahintha Company.
Rice was shipped with MV Ocean Prince. The ship arrived in August, 2018. The loading of rice bags took two and half months due to rain. Rice bags were loaded onto the ship. The ship left Yangon on October 15.
The ship left India jetty after loading 14,000 tons of rice in November, 2018. In late December, 2018, the ship arrived at Conakry Jetty. There emerged a problem about low rice weight after unloading 4,000 tons of rice here. The quality inspection company did not accept it. Rice was sold in other African countries. The ship arrived in Togo. Togo did not buy it due to the spread of news about the situation in Guinea via media. The rice quality is good. Côte d'Ivoire also refused to accept the unloading of rice.
On February 19, 2019, agents from Olam International Co held a discussion with officials from the Commerce Ministry to bring back the remaining rice stocks to Myanmar.
“Actually, a rice bag shall weight 50 kilo. But the country refused to buy it as its weight is 45 kilo. The remark is that Myanmar rice had been declared unfit for human consumption has a knock-on effect on Myanmar. The Commerce Ministry granted the import permit under a repair and return system. The ministry planned to scrutinize and inspect it after the formation of a team. The ship did not come to Myanmar. There is news that the problem had been solved after the sale of rice in Africa.
Soon the Myanmar Rice Federation, rice exporters, inspection agencies and those involved will hold a meeting. The ministry will review the truth and which organizations are responsible for it. Export companies or broker companies or inspection agencies? What cancommerce ministry do for it. It is a wake-up call for local rice exporters.
Since last year, Myanmar became the fifth largest rice exporter. The EU collects safeguard duty on long-grain rice from Myanmar in order to protect the interest of EU member countries.
Like the problems faced by the countries which started entering the market, the competition was stiff. This competition should be fair. We can face the similar problem if there is unfair competition by inspection agency and the shipment of rice with moisture content and weight.
Once Myanmar was the top rice exporter in the global market. Cooperation is needed between those involved in the supply chain system, Myanmar Rice Federation, rice export companies, UMFCCI and relevant ministries.
