Rice merchants are facing financial hardships as rice mills cannot be operated due to the power outage in Yangon Region, said U Than Oo, secretary of Bayintnaung Rice Wholesale Centre.
“There are stockpiles of rice bags at the rice mills which need to upgrade quality for export. The inability to load rice onto ships and the prolonged duration in making cash payment are directly concerned with the power outage,” he said.
Rice entering from Ayeyawady and eastern part of Bago Region needs to be further processed at rice mills of Yangon Region to upgrade the quality. However, there have been
large quantities of rice at rice mills due to the power outage in Yangon for a long time.
As rice cannot be exported to China, around 50,000 to 100,000 rice bags arrive in the Yangon rice market on a daily basis. “There are stockpiles of rice at rice mills. As rice cannot be processed at factories due to power failures, newly-arrived rice bags are being bought at reduced prices,” he said.
“Moreover, cash payment could be made within three or four days previously. However, it takes up to nine to 10 days at this time,” said some rice merchants in Bayintnaung Rice Wholesale Centre.
Myanmar annually produces around 14 million tons of rice. The country could export 3.6 million tons of rice and broken rice to foreign countries in 2017-2018 fiscal year.