MoU on official rice exports to China to be signed soon
Under a program between Myanmar’s Yangon and China’s Kunming, a Memorandum of Understanding on official rice exports to China will be signed soon, said U Aung Htoo, Deputy Minister of Commerce. “We plan to sign the MoU for the export of rice and broken rice to China by this month or next. Negotiations are at the final level now,” he told reporters on Tuesday.
For years, China has been a major export market for Myanmar’s agricultural products, including rice. Up until today though, both countries have not inked a bilateral agreement on trade and China does not officially allow imports from Myanmar beyond a strict quota.
“Actually, Myanmar’s rice exports to China all this while has been informal,” U Aung Htoo said.
China currently imports commodities based on a quota system. Myanmar’s quota is export of 100,000 tonnes of rice. “Exports of only 100,000 tonnes of rice are allowed officially now. To increase its quota, rice mills in Myanmar need to comply with requirements of the World Trade,” U Aung Htoo said.
Tax exemptions for export volumes within the quota are available for traders however those who exceed the quota will not receive it. Myanmar currently exports rice to China based on the quota system .There is also border trading for rice, which is mostly informal.
According to the quota system, traders at the border can export up to RMB8000 worth of rice per day.