The Burmese army started its rice purchasing program for army rations in Arakan State this week, and is currently buying paddy from Akyab and Mrauk U Townships.
A source says this the army is paying farmers the local market price and not a reduced price for the paddy this year, as they have done in previous years.
In Mrauk U and Akyab the price of paddy is only 250,000 kyats for 100 tinn, or 250 baskets, and the army has offered local farmers this price for their paddy. This year will see most Arakanese farmers selling their paddy to the army if the army does indeed pay the current local market prices.
An army source reports that within a week of starting the purchasing program, the army has collected 9000 tinns from Mrauk U and Akyab Townships.
In Arakan State another business group, the Rakhine Rice Merchants Association, is also purchasing paddy, but they are paying only 225,000 kyats per 100 tinn.
In this 2006-07 harvest year, there are about 120,000 acres of paddy farms in Arakan State.#
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