At that level, the reference price, or floor price, is expected to be fair and supportive of sustainable development across the whole rice supply chain and in accordance with the Law of Protection of Farmer Rights, the committee said in its statement.

“The basic reference price of 100 baskets of paddy, each basket weighing 46 pounds, will be K500,000 if the grains have moisture content of 14 percent, are free of dust, sand, gravel, and meet the set standards,” the announcement stated.

Farmers facing difficulties selling their produce at the floor price can also contact the township representatives of the Myanmar Rice Federation.

The government first set a basic reference price for paddy at K500,000 per 100 baskets in 2018.

U Myo Tint Tun, Deputy Permanent Secretary of Ministry of Agriculture, Livestock, and Irrigation, explained that the floor price will be the benchmark price used for trade should the market price for paddy fall below K500,000.

Currently, the price of high quality Pawsan paddy grown in this year ranges between K800,000 and K1.2 million for 100 baskets. “The floor price announcement will ensure that the price for lower-grade Emata paddy will not fall below K500,000 per 100 baskets,” U Aung Than Oo, vice chair of the Myanmar Rice Federation told the Myanmar Times.

At the moment, Emata paddy which meets the 14pc moisture content requirement fetches up toK520,000 per 100 baskets in the market. For paddy with higher moisture content, the price is now K450,000 per 100 baskets, U Aung Than Oo said.

The cost of production for paddy is around K 350,000 for 100 baskets, according to Myanmar Rice Federation.

While the basic reference price was welcome, some farmers said difficulties, such as getting the right weighing equipment, linger. “It isn’t easy for us to weigh the goods with platform scales as some of us don’t even have those measuring devices,” said Ko Myo Win from Lewe township in Nay Pyi Taw.

U Sein Win, Pyithu Hluttaw MP for Maubin Constituency of Ayeyarwady Region, said setting the floor price at K 500,000 will not solve the daily necessities of farmers but that the announcement will reduce protests of low paddy prices before next year’s General Election.

Source: https://www.mmtimes.com/news/rice-floor-price-set-k500000-every-100-baskets.html