This Background Paper is an integral part of the Diagnostic Assessment. It involves an
assessment of the Myanmar rice value chain within the context of the Myanmar rice industry.
Special focus is paid to its structure and performance, dynamics, and future prospects. Also
included is a consideration of its weaknesses and constraints that had influenced the
development of the industry as well as an evaluation of the prospect of improving the value
chain and consequently the industry and suggesting crucial steps that should be taken for the
short game and the long game. Basically, the report integrates the findings from intensive
literature review and desk research coupled with observations and interviews conducted
during field visits in October and November 2012 and supplemented by personal
communication with key players in the public and private sectors as well as civil society at
various levels of the rice value chain.
A backdrop was provided by considering the historical development of the rice industry and
key policies and milestones as they relate to the development and transformation of the rice
value chain, particularly the series of liberalization of the rice sector since the drastic total
withdrawal of Myanma Agricultural Produce Trading (MAPT) in both the domestic and
export rice market in April 2003. Since then, the transformation of the rice supply or value
chain has been nothing short of spectacular at the upstream, midstream and downstream
segments of the chain, involving various forms of Public-Private-Partnership. Key
developments include the establishment of Rice Specialization Companies (RSCs) from
2008, followed by the formation of the Myanmar Rice Industry Association (MRIA), an
umbrella association representing the entire rice supply chain, in January 2010 and
subsequent upgraded to Myanmar Rice Federation (MRF), followed by the launching of
Myanmar Agri-business Public Company (MAPCO) in 2012. It was recently announced that
a new think-tank, the MAPCO Institute, will be established in early 2013 to support
agribusiness development in Myanmar.