Paddy prices for all varieties have continued to rise in Mon State in early September, ahead of the arrival of the new monsoon rice crop, with prices reaching as high as 5 million kyats per 100 baskets, according to local farmers.
Paddy prices are rising rapidly as market stocks have declined while demand remains high. Tens of thousands of acres of paddy fields have also been damaged by flooding.
Paddy prices currently range from around 4 million to 5 million kyats per 100 baskets, depending on the variety. A farmer from Paung Township told IMNA that paddy stocks among farmers have become nearly depleted as they have sold their remaining paddy to raise capital for farming.
“The price has risen by more than 500,000 kyats within just this week. There is hardly any paddy left to sell. When we needed money for farming, we started selling at around 3.5 million kyats. By the time the price reached 4 million kyats, farmers had already sold most of the paddy they had,” the farmer from Paung Township said.
However, paddy prices vary from one area to another, and some farmers are still storing their remaining paddy, according to local sources.
“The paddy price is around 4 million kyats. In our village, no one has sold their stored paddy yet. We are planning to sell it before the new monsoon rice comes in. If the price goes higher than the current level, we will sell it. Since the price is not high enough yet, we are keeping it in storage,” a farmer from Kyaikmaraw Township said.
Farmers said the number of people growing monsoon rice in Mon State has declined significantly this year due to soaring commodity and fuel prices. They said rice prices will need to remain at current levels for farming operations to remain viable next year.
“If prices remain at this level next year, farming will be somewhat more viable. Everything, including ploughing costs, has become more expensive. We were getting only around 2 million kyats when we sold our paddy during the summer. Now it has reached 4 million kyats. The price has doubled,” a farmer from Modum Township said.
Farmers also said heavy rainfall has led to severe pest infestations in monsoon paddy fields across Mon State, including onion thrips and rice bugs. Many farmland areas have also been damaged by rats.
Rice market observers said the current market price is not yet considered favorable for selling, as the new paddy crop is still several months away.
The Myanmar Rice Federation, under the military junta, also issued a statement in August urging rice and paddy traders not to raise prices for their stored stocks and to sell rice and paddy at affordable prices to the public, while tens of thousands of acres of farmland remained submerged by flooding.
