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					                                                       USDA Fore ign Agric ultural Se rvice

                                                           GAIN Report
                                                      Global Agriculture Information Network
Template Versio n 2.09




Required Report - public distribution
                                                                             Date: 1/24/2007
                                                             GAIN Report Number: BM7002
BM7002
Burma
Grain and Feed
Rice Monthly Trade Report - December 2006
2007

Approved by:
Gary Meyer, Agricultural Counselor
U.S. Embassy
Prepared by:
Daphne Khin Swe Swe Aye, Agricultural Specialist




Report Highlights:
Burma exported 419 metric tons of rice in December, mostly tied to commit ments made
before the export ban was implemented in May. Burma’s CY 2006 rice exports were only 46,815
metric tons, a decrease of 79 percent from the CY 2005 level of 219,624 metric tons.


                                                                         Includes PSD Changes: No
                                                                          Includes Trade Matrix: No
                                                                                       Trade Report
                                                                                     Bangkok [TH1]
                                                                                              [BM]
 GAIN Report - BM7002                                                                     Page 2 of 3

 Burma exported 419 metric tons of rice in December to Singapore only. These exports were
 tied to sales concluded before the rice export ban was implemented in May 2006. The rice
 export ban continued through December, despite an inf lux of supplies f rom new crop
 production. However, some traders are optimistic that the Government of Burma may lift
 the ban in the near future.

 Trade sources reported that the GOB plans to establish a government enterprise, called
 Golden Land East Asia Development. The new enterprise is aimed at developing agricultural
 production and international trade of agricultural products including paddy and rice. This
 implies that the paddy and rice market may be controlled through this organization in the
 future.

 Industry sources suggested that the Cambodian Government approached the GOB to join
 Association of Mekong Region Rice Exporting Countries. The Mekong River region covers five
 countries, including Laos, Thailand, Burma, Cambodia, and Vietnam. However, production
 seasonality and price competitiveness among Southeast Asian rice exporters has historically
 stymied these efforts to cooperate.

 According to the Ministry of Agriculture and Irrigation, 92.42 percent of the rainy season crop
 has been harvested while 31.69 percent of dry season crop has been seeded by December
 31, 2006. The target of dry season crop is 3 million acres.

 TRADE

 In the month of December 2006, 419 metric tons of rice was exported to Singapore.

 Monthly Rice Exports

                                     2005                                         2006
Month                         Rice                                             Rice
                  Milled    Broken     Total          Paddy      Milled       Broken Total            Paddy


 Jan.            28,575      3,754          32,329      16         3,882       2,142      6,024         0
 Feb.            25,540      4,590          30,130       0           230         211         441        0
 Mar.            18,611      3,154          21,765       0        20,460              0   20,460        0
 Apr.            15,138           0         15,138       0        19,212              0   19,212        0
 May               1,372          0          1,372       0                0           0           0     0
 June              2,188          0          2,188       0           235              0      235        0
 July                  0     2,289           2,289       0            0               0        0        0
 Aug.            11,339           0         11,339       0            0               0       0         0
 Sept.             4,011          0          4,011       0           24               0       24        0
 Oct.             33,024          0         33,024       0            0              0            0     0
 Nov.              6,315         0           6,315       0            0              0            0     0
 Dec.            59,724          0          59,724       0         419           0           419        0
Total           205,837      13,787         219,624     16       44,462        2,353      46,815        0




 UNCLASSIF IED                                                USDA Fore ign Agric ultural Se rvice
GAIN Report - BM7002                                                               Page 3 of 3

National average domestic wholesale rice price (Kyat/kilo)
                   Ehmata             Superior             Inferior
Current Month         236                      383                   209
Previous Month        132                      409                   222
One year ago          143                      257                    97


National average domestic wholesale pa ddy price (Kyat/ton)
                         Inferior                   Superior
Current Month            164,349                     233,741
Previous Month           153,392                     206,958
One year ago               74,261                    194,784

Average exchange rate in December: one US$= Kyat 1,260

Inflow of rice into the Rangoon market is consistent but trading is inactive since increased
transportation costs limited demand from other regions.

Prices for Ehmata rice increased by 78 percent from those in November while prices for
inferior quality and superior quality decreased by 6 percent and 3 percent, respectively.
Prices for Ehmata paddy were the highest in Tanintharyi Division. Prices for Inferior quality
and superior quality paddy also increased by 7 percent and 13 percent from those in
November, respectively.

EXPORT PROSPECTS

Burma’s rice exports in CY 2007 registered only 46,815 metric tons, down 79 percent from
219,624 metric tons in CY 2005. The export shortfall is mainly attributed to the rice export
ban which began in May 2006. Buyers of Burmese rice CY 2006 include Malaysia, Singapore
and Africa.

The Ministry of Agriculture and Irrigation reported of favorable rainy-season paddy
production in MY 2006/07 and the development of a new state enterprise responsible for the
Burma’s rice exports indicates Burma is on track to increase their rice exports in CY 2007.
However, traders are reportedly skeptical of the official government report, as they believe
paddy production may be well under officially reported levels. Trade sources recently
reported that paddy production in major grow ing areas in Irrawaddy Divison is estimated to
have dropped by 15-20 percent from the 2005/06 rainy season crops.


End of Report.




UNCLASSIF IED                                           USDA Fore ign Agric ultural Se rvice