Traders in Upper Sagaing and Kachin State halt paddy purchases amid Chinese border closure and rising costs in transportation

Traders in Upper Sagaing Region and Kachin State have stopped buying and storing paddy, citing the closure of the Chinese border and soaring transportation costs according to local farmers and rice merchants.

In Katha District, paddy prices remain around 10,000 kyats per basket, while cultivation expenses have tripled compared to previous years, according to farmers from Maezar River. 

Rising fuel prices and additional irrigation costs due to irregular rainfall have added to the burden. "Planting and harvesting each cost around 150,000 kyats, and machine use leaves us in debt," the farmer explained.

A rice trader from Indaw noted that shipping costs to Mandalay have risen from 5,000 to 15,000 kyats. "The Chinese border is closed, and there’s already an oversupply of rice there. With prices only around 80,000 kyats per bag, we can’t risk storing it, especially with regional instability," he added.

Farmers in Mohnyin Township, Kachin State, report that labor shortages and lack of equipment have delayed harvesting. Some fear losses if rains arrive before the rice is harvested. Rising costs of basic goods like garlic and tomatoes have further strained local livelihoods as young workers leave the area.

Kachin State has over 760,000 acres of cultivated land, of which rice fields account for 380,000 acres. In Katha District, there were over 360,000 acres of farmland in 2019, mostly rain-fed. Farmers and traders alike face mounting challenges amidst these economic and logistical hurdles.