Private sector exporters in Myanmar say they plan to export 400,000 tons of rice to Bangladesh, but importers will not be able to use letters of credit (L/Cs) to pay for the much-needed staple.

Experts suggest that Bangladesh usually has a rice shortage of 1-1.5 million tonnes a year, but because of natural disasters such as recent floods and last November's cyclone Sidr, the country will suffer an additional shortage of 1.9 million tonnes.

400,000 tons available

The Commerce Ministry of Myanmar has informed the Bangladesh embassy in Rangoon that the country has about 400,000 tons of privately produced rice available for export this year.

The exporters will sell the rice at 'free on board' prices between US$280 and US$365 per ton, officials said.

Sanctions

The ministry has however informed Bangladesh that import payments should be made through the telegraphic transfer advance system via Singapore, as exporters in Myanmar "do not prefer the L/C system."

Myanmar is under trade sanctions imposed by the US, European Union and Canada that restrict banks in those jurisdictions writing L/Cs with Myanmar.

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