Government holds off on paddy purchases
The Ministry of Commerce is suspending plans for a paddy purchase program due to a recovery in market prices, according to ministry spokesperson U Khin Maung Lwin. U Khin Maung Lwin told The Myanmar Times in the first week of December that the ministry had approval for a K15 billion purchase program in the Yangon, Bago and Ayeyarwaddy regions. Paddy purchasing groups were to be formed under the temporary Agricultural Product Management Committee, and buy paddy from farmers at the minimum price of K380,000 for 100 baskets. U Khin Maung Lwin said that the program had been put on hold because the market price for paddy had risen sufficiently to allow farmers to cover the cost of production. Farmers had criticised the minimum purchase price announced in December, which they argued was lower than the then market price of K400,000. The commerce ministry responded at the time that the floor price was designed to cover the cost of production, not ensure profits.
