Men shovel rice at a rice distribution area. The Myanmar Rice Millers’ Association released figures last week showing that at July 1 there were 12.7 million tonnes of rice in storage in Myanmar, plenty to last until next harvest, it said. The association blamed the recent price rises on traders holding rice stocks off the market.

THE Myanmar Rice Millers’ Association (MRMA) last week called on traders not to stockpile rice to manipulate prices and repeated previous claims that there was no actual rice shortage in Myanmar.

While rice prices jumped early last month, prompting the Myanmar Rice and Paddy Traders’ Association (MRPTA) to open discount rice shops selling directly to the public, MRMA president U Tin Win said the increase was not due to any risk of the country running short of rice.

“We currently have more than 12.7 million tonnes of rice from last monsoon’s harvest, which is enough for the whole population for the next six months, when there will be another rice harvest,” he said, adding that this figure did not include rice from the recent summer harvest.

U Tin Win said the erratic rice prices were rooted in the efforts of some traders who were hoarding rice in a bid to create an artificial shortage in the market and thus push up prices. When prices were higher they would release their stocks, he said.

“Also, some traders only send rice to markets where they can get good prices instead of selling it in areas where there may be insufficient supplies,” he added, highlighting a flaw of market economics where higher demand doesn’t always transfer into an ability to pay more.

The Union of Myanmar Federation of Chambers of Commerce and Industry, the MRMA and the MRPTA have all urged traders to send rice to markets where there may be shortages.

However, a shortage in shops did not indicate a shortage in a warehouse just down the road, U Tin Win said.

“For example, Yangon Division is an area with a rice surplus but there are still times when there’s not enough on the market in the city because people are hoarding it.”

Of the 12.7 million tonnes the MRMA said were available on July 1, 3.49 million tonnes were in Ayeyarwaddy Division, according to figures released to The Myanmar Times by the association. Yangon Division accounted for 1.89 million tonnes, Bago 2.47 million tonnes, Sagaing 1.54 million tonnes, Mon State 0.85 million tonnes and Kayin State 0.29 million tonnes.

In what are classified “rice deficit areas”, Mandalay Division had 0.33 million tonnes of rice in storage, Tanintharyi had 0.24 million tonnes and Magway had 0.19 million tonnes. Shan State (north and south) was also included in the deficit group.

More than 40,000 49-kilogram (108-pound) bags of rice are consumed in Yangon City each day alone.