After a break of nearly 50 years, Japan will resume its rice imports from Myanmar, a landmark economic agreement between Tokyo and the former military dictatorship of the country previously known as Burma.
In a statement yesterday, the trading firm who triggered the renewed relations between the two nations, Mitsui & Co. Ltd, said that six thousand tons of rice would arrive in Japan from Yangon, the largest city in Myanmar.
Mitsui also commented that the purchaser, the government’s agriculture department, is likely to resell the rice to several diverse firms who make products like crackers, beer and other distilled beverages.
Since President Thein Sein took over the country in 2011, Myanmar has distanced itself from harsh military rule and is looking to build an era of economic reforms and political stability. Consequently, the nation, which is home to more than 100 ethnic groups, has begun to build closer trading ties with several regional governments, most notably Tokyo.
Last year Japan waived a substantial loan owed to the country by Myanmar, and since then Japanese companies have been developing relations with the Sein government, with the nation’s agricultural area being seen as an exceptional investment opportunity.
There will be much work to do however, and any investment will to go towards badly needed development of Myanmar’s infrastructure.
“The irrigation systems and fertilizers are well below standard,” said Satoru Shimoishikawa, a trading manager at Mitsui. “I’m sure our company and others will be able to help greatly with their sales network also.”
That sentiment has been mirrored by other trading and investment firms, such as Sinolink Japan, who have been very active trying to get into the Myanmar market in the last few months.
Myanmar Agribusiness Public Corporation (Mapco), the seller of the rice, was newly formed last year and began selling rice to Mitsui, one of Japan’s biggest trading firms by revenue, soon after that. Mitsui has revealed they plan to build four rice processing factories near Yangon at a cost of 20 billion yen.
Myanmar is no stranger to mass rice production. When the nation was known as Burma and still under British rule it was the world’s largest rice exporter, shipping a staggering 3.5 million tons in 1935.
Now that the nation has shrugged off its military rule and embraced democracy and reform, it represents one of the best growth opportunities in Asia.
