SINGAPORE—Myanmar has resumed rice exports after more than two months as its summer harvest is nearing completion and local supply is ample, trading executives said Monday.
The resumption in exports will likely weigh on global prices, which are also pressured by bumper harvests in top producers Thailand and Vietnam. Myanmar's rice is the cheapest in the world and in strong demand among low-income African countries.
Myanmar's resumption of rice exports "will definitely drag down prices," said Abdul Aziz Ghaffar, chief executive of RiceTex, a Karachi-based trading company.
Chookiat Ophaswongse, managing director of major Thai exporter, Huay Chuan Rice Co., said consistent exports by the country would be negative for prices.
Myanmar had halted exports in end-February to rein in local prices and inflation, after prices rose around 15% in one month, partly due to an increase in fuel prices.
Now, both state-run and private trading companies are exporting rice, said a Singapore-based executive with a global trading company.
A senior Myanmar Rice Industry Association official said association members have received licenses to export close to 30,000 tons of rice.
More licenses are in the offing and exports may gather pace in June, the official said.
Myanmar had already exported around 200,000 tons from its main October-November harvest before the ban was imposed.
Myanmar produces a little over 10 million tons of rice annually, exporting anywhere between 500,000 tons and 1 million tons.
(Source: http://online.wsj.com/article/SB10001424052748703509104576327250000941710.html)
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