Myanmar's 5% Broken Rice Prices at 21-month low

21-Nov-2024 03:01 PM

Myanmar's 5% Broken Rice Prices at 21-month low
The price of Myanmar's 5% Broken White Rice has fallen to a 21-month low as of November 14, 2024, with a significant year-on-year decline of $87 per tonne. The current price stands at $479 per tonne, which is also a drop from $21 per tonne month-on-month and $15 per tonne week-on-week.

Several factors have contributed to this price decrease:

India's Removal of MEP: India recently lifted its Minimum Export Price (MEP) on non-basmati white rice, which has altered global trade dynamics. Countries that previously imported rice from Myanmar, especially in Africa, have turned to India, where rice is now available at competitive prices.

Currency Depreciation: The depreciation of Myanmar's currency, the Kyat, has further affected rice prices, making Myanmar's rice more affordable for international buyers, though this has also been a double-edged sword as it pushes the market price lower.

Global Competition: Myanmar's 5% broken rice is currently cheaper than comparable grades from Thailand and Vietnam, increasing its attractiveness on the global market. However, Myanmar's low rice prices are unlikely to last due to expected declines in rice production in the future, which may lead to price increases.

Potential for Future Price Increases: Despite the current decline, there is a possibility that Myanmar's rice prices could rise again due to low productivity, which could reduce supply and push prices up in the coming months.

In summary, the combination of changes in Indian rice export policies, currency devaluation in Myanmar, and competitive pricing from other countries like Thailand and Vietnam has created a tough situation for Myanmar rice exporters. However, as rice production remains a concern, Myanmar's prices may rebound if supply tightens in the future.