Myanmar to sell rice to China only with down payment system

Myanmar will abolish the credit system in the selling of rice to China, and it will now exercise only the cash-down system to sell rice to China, said Vice-Chair U Min Thein of the Muse Rice
Commodity Depot.

By putting an end to the credit system to sell rice to China, it can prevent occurrences of fraud. To avoid the problem of fraud, the association will conduct the supervision, he added.

“If it is possible, we will eliminate the credit system with China. We will pack the rice in Muse warehouses, and the Chinese traders can buy them with the outright purchase system which is as we are using in sugar trading,” he said.

Buying the rice with the credit system in the Muse border is traditional. If we set up the outright purchase system for buying the rice, it will be safer for rice traders. Our Myanmar rice traders need to be united, he added.

In November 2019, a Chinese citizen identified as Luo Jianfang or Luo Laoban from Hubei Province of China cheated Myanmar traders of K2.6 billion and the traders based in Ruili, China in November-end of K8 billion. He got away with over K10.6 billion.

“The fraud case of a Chinese citizen who allegedly cheated Myanmar traders of over K10.6 billion will be filed with the Ministry of Commerce, and we will initiate to prosecute through the diplomatic mission,” the vice-chair of Muse rice depot stated.

“There is no impact on Muse rice trading by the fraud case. Around 40,000 bags of rice and broken rice entering Muse trading market and trading the same amount of volume to China,” he affirmed.

Therefore, Myanmar Rice Federation notified the traders to enter into a firm contract and strictly adhere to the trade regulations. Myanmar Companies which have difficulties in entering into a firm contract and complying with regulations can contact the federation or Muse depot, MRF released a notification on 27 November.

Source : The Global New Light Of Myanmar