NAY PYI TAW June 12
A meeting to increase production of basic foodstuffs was held at State Administration Council Chairman’s Office here this afternoon, addressed by Chairman of State Administration Council Prime Minister Senior General Min Aung Hlaing.
Also present were SAC members Admiral Tin Aung San and Lt-Gen Moe Myint Tun, union ministers, U Maung Maung Ohn and U Min Naung, Nay Pyi Taw Council Chair U Tin Oo Lwin, senior military officers from the Office of the Commander-in-Chief, deputy ministers and officials. Region/State chief ministers took part in the meeting through video conferencing.
The Senior General said it is a meeting in connection with the rules and duties of state and region governments to increase fish and meat and agro-good production. Moreover, the meeting will also seek means to bring down commodity prices. After SAC assumed State duties in accord with the national needs, internal groups with different views made attempts to harm the economy, while eternal organizations were imposing economic sanctions, halting aids and cooperation under various pretexts. Due to their monetary restrictions in trade, the country had to limit its foreign exchange spending. Financial monopolizes took advantage of the price gap in doing trade.
There were attempts even to hurt the banking industry.
The government was dealing with the acts to harm the national economy from 2021, and in 2022, it could stabilize currency circulation to a certain degree. But a global recession was caused by COVID-19 and the fuel crises triggered by the events in East Europe. Rise in transport and production cost due to increasing fuel prices and the imbalance supply and demand led to an upsurge in commodity prices.
Production cost went up in the country alongside the rising prices of inputs in farming and production industries. It is assumed that commodity prices went up to extremely high levels due to the currency monopolization of avaricious persons and political opportunists. Commodity prices rose due to higher production cost, disproportion in demand and supply and unusual retail chain.
Guidance has already been given to use natural fertilizers, to conduct systematic livestock farming and to reuse animal dung as organic fertilizer, to facilitate chemical fertilizer import producers with government arrangement.
Dissemination of means to prioritize river water pumping projects for crops and to generate electricity with solar power in places where electricity supply is not available showed success to a certain degree.
Farming industry needs an adequate amount of feed and water.
Cost reduction means for the production business cannot be applied fully till now. Rising transport cost is also one of the causes of the rising production cost. Production costs went up due to higher fuel prices and security constraints. Certain volumes of goods can be transported by trains and water vessels in accord with the Senior General’s guidance. But the transport cost will be still high due to the application of land transport in conveying important goods. Rail transport costs less. As effectiveness is still absent in public transport, region and state officials should pay serious attention to the issue.
The unbalanced supply and demand can be seen for rice, cooking oil, salt, gram, beans, chili, onion, potato, meat, fish and eggs in relevant regions.
All regions have adequate cultivable lands for agricultural tasks and sufficient agricultural produce which can be used in manufacturing animal feedstuffs for livestock farms in regions and states. Demands of meat and fish in relevant regions cause hiking prices.
All regions and states have to effectively spend capitals from the State economic promotion fund on operating agriculture and livestock farming tasks so as to contribute to the food supply of relevant regions.
These regions and states need to produce the sufficient volume of food supplies to prioritize the balance of supply and demand.
The Senior General stressed the need to efficiently utilize the land plots for agriculture and livestock farming tasks in regions and states. It is necessary to systematically manage land utilization not to leave vacant lands. All have to operate a livestock breeding system.
Only when they operate systematic agriculture and livestock farms will the volume of products increase. Agricultural lands must be reclaimed as acreage plots for fully utilizing in order to increase per-acre yield of agricultural produce. If authorities supervise farmlands under rules and regulations, it will contribute to production.
The Senior General underscored that it is necessary to consider reform process for trading of commodities. In a bid to reduce commodity prices, the production volume must be raised for setting appropriate prices of goods in the country.
The government sets aims to ensure prosperity of the country and sufficiency of foods.
Myanmar is engaged in agriculture and livestock breeding.
Although the country is plentiful of land and water resources as well as human resources, high prices of commodities should not be appropriate. Hence, the meeting focused on discussions of high prices of goods. Those from all ministries and regions and states need to discuss manufacturing of goods.
Deputy Minister for Commerce U Nyunt Aung reported on plans to ensure correct commodity prices and flow of commodities.
The Chairman of Nay Pyi Taw Council, region and state chief ministers presented clarifications on region-wise food sufficiency, production, efforts to increase production of agriculture and livestock farming products through the State economic promotion fund, price inflation of basic foodstuffs, fuel and personal goods, arrangements for balancing the manufacturing and demand, and future plans.
Council members, Union ministers, senior military officers from the Office of the Commander-in-Chief and deputy ministers reported on transport of goods by train, ship and plane, cultivation of rice, beans and corn at home and exporting, needs of supervising domestically agricultural produce to have appropriate prices and setting suitable prices for imported goods, releasing of prices for basic foodstuffs by the government and relevant organizations and description of news and articles, taking severe action against greedy businesspersons who commit higher prices of goods with selfishness, ways and means for solving the root causes of high prices for rice, paddy, meat, fish and foodstuffs to have appropriate prices, production of meat, fish and personal goods by Myanmar Economic Holdings Public Co Ltd and Myanmar Economic Corporation at correct prices so as to decline commodity prices, operation of military owned agricultural and livestock farms of regiments and units to sell products to families of the Tatmadaw and locals at reduced prices, and efforts of MSMEs to develop commodity production so as to meet the local demand.
With regard to the reports, the Senior General said that officials of regions and states must emphasize supervising removal of inappropriate charges at tollgates along the routes of transporting commodities.
It is necessary to use rail transportation and waterway transport for unimportant goods.
Aviation service should be used in transport of commodities.
Airports are being upgraded for development of aviation services.
If cargo planes can land at the airports, they can swiftly transport important goods.
High commodity prices were based on high prices of inputs in 2021 and 2022. It is necessary to control brokerages in regions and states. If all people fully produce necessary foodstuffs at home, such an act will reduce high prices of meat, fish and eggs to some extent.
The floor price of some meat is fixed by the development committee. Chief ministers of regions and states need to coordinate with the Union level organizations to find ways in order that floor prices will not rise. Regarding the rice price, our country grows monsoon paddy mainly and the target for per acre yield is 100 baskets.
Therefore, it is necessary to meet the target. If the target is met, there will be surplus in paddy production which means that the paddy could be delivered to other regions and exported too. Security of food is important for the Union.
Therefore, it is necessary to systematically grow not only paddy but other crops to ensure increase in the output. As the monsoon has already entered the country, all the set sizes of seedlings are to be systematically cultivated. It is also necessary to grow trees supporting the weather and conserve trees and forests as well.
Regarding the cooperative system, our nation needs to exercise the system and if the system is exercised in a commodity production role, there will be successes. Accordingly, the government will give a hand for it.
In his concluding remarks, the Senior General said what the matters are to be carried out as per the discussions and suggestions. Matters on the basic food were mainly discussed in terms of the commodity production role. The Union Government has laid down policies and is fulfilling the needs of the people in accordance with the law.
With the political objective of building a union based on democracy and federalism, regions and states are granted authority. Region and state chief ministers need to make efforts to ensure region-wise development. To do so needs income and that is why commodity production measures are to be taken. Commodity production is important for the nation. If efforts are made on a region and state basis, there will be many benefits for the nation. It is necessary to meet quality in products not only for the domestic market demand but for the overseas markets.
In extracting and utilizing the natural resources for manufacturing products, it is necessary to encourage above-ground resources such as manufacturing agriculture and livestock products rather than underground natural resources. In use of marine resources, it is to encourage breeding rather than fishing. As it is necessary to be the type of commodity production controlling the prices,
adjustments are required. Only if there is commodity production, will the cash flow be smooth to help the regional and national economy grow.
In carrying out commodity production measures, it is necessary to mainly use raw materials produced domestically.
Taking lessons from weaknesses in the previous periods, it is necessary to make efforts to get the nation’s economy back on the regular course during the time we are taking the responsibilities. Results gained from our efforts will be enjoyed by the next generations.
Manufacturing basic food items adequately on a region and state basis will be helpful to stability of commodities prices.
Manufacturers need to make adjustments in setting the most proper prices for the people to sell products. In doing so, officials are to provide enforcement measures in accordance with the law, rules and regulations.
Despite the lower prices of inputs such as fuel oil and fertilizer compared to those in the year earlier, commodities prices are still high.
It is necessary to make more income for the nation through achieving development of commodity production in order that the nation’s currency value is firm and that there will be no inflation as well. It is compulsory to implement tasks for development of commodity production in regions and states. The Tatmadaw is selling meat, fish and egg, food items and personal goods produced by military run agriculture and livestock businesses on a managerial scale and manufactured by the military factories to the people at reasonable prices to help adjust the commodities prices in another way. Mainly, it is necessary to control and adjust the current prices through development of commodity production.
As this meeting is to make a beginning to find ways for appropriate prices, measures are to be taken to find ways and solutions in respective regions and states as soon as possible.
