Customers queue to buy rice from a shop set up by the Myanmar Rice Wholesalers’ Association at Nawarat Market in Dawbon township, Yangon, last Wednesday. Pic: Aung Tun Win

THE Myanmar Rice and Paddy Traders’ Association has opened ad-hoc rice shops for the first time across the country to offer discounted rice to consumers in a bid to reverse a jump in prices in early July, a senior official from the association said on Wednesday.

The price of a 108-pound (49-kilogram) bag of rice rose 25 to 30 percent early last month, depending on the grade of rice.

U Aung Than Oo, president of Myanmar Rice and Paddy Traders’ Association, said that by Wednesday 13 shops had been opened on the outskirts of Yangon and a total of 40 were planned for Yangon Division. The first was opened on July 26 and the association planned to open five shops a day in towns in all of Myanmar’s states and divisions, U Aung Than Oo said.

The shops would sell standard-quality rice directly to the public for K9600 a bag, more than a third cheaper than the K15,000 bags of rice cost at many of the city’s retail outlets.

“The purpose of opening the shops is to lower the current price of rice as prices have been going up at an alarming rate. We also aim to stabilise rice prices at a lower level over the long term,” U Aung Than Oo.

He said that rice had become more expensive over the past month because of manipulation by rice traders – particularly between wholesale and retail markets – who speculated that there could be a shortage of rice in the coming months.

“People do not need to worry about the rice stocks,” U Aung Than Oo told The Myanmar Times. “The country has large reserves to meet local consumption demand.”

U Aung Than Oo called on the public not to stockpile rice as doing so could contribute to higher prices.

The association planned to continue opening shops and selling rice directly to the public until November when the next harvest is due.

U Aung Than Oo said the association expected the price of rice in the long term to return to previous levels.

Retailers in mid July claimed they had kept their profits steady through the price rises at about K800 per bag.