Signing of food grains purchase deal with Myanmar uncertain

The signing of a bilateral pact on food grain purchase between Myanmar and Bangladesh has become uncertain after the former informed that it now does not export rice on government-to-government (G-to-G) basis, sources said.

However, Myanmar proposed that Bangladeshi importers can sign bilateral pacts with its private sector for importing food grain.

Bangladesh is now mulling if any memorandum of understanding (MoU) could be signed between the Trading Corporation of Bangladesh (TCB) and any private sector organisation nominated by the Myanmar government, trade officials said.

A senior commerce ministry official told the FE that presently Bangladesh was self-sufficient in food grain production. It was not considering importing any food grain like rice from Myanmar.

"But, in the future Bangladesh may need to import food grain from Myanmar on emergency basis. So we need to sign a deal with the country on G-to-G basis or with its private sector, so that food grain demand can be met through importing it from there when necessary," he said.

Sources said the seventh meeting of the Joint Trade Commission (JTC) of Bangladesh and Myanmar would be held in Yangon during January 14-15, where various issues, including the pact on food grain, would be discussed.

Sources said Bangladesh's commerce secretary Mahbub Ahmad and a deputy minister of Myanmar would lead their respective delegations to the meet.

Issues including those related to border trade, importing salt from Myanmar, contract farming in Myanmar's agriculture sector, bilateral cooperation in fisheries and livestock sectors, inauguration of the direct flight of Myanmar Airlines to Dhaka, launching coastal shipping service, importing hydro power from Myanmar, and launch of banking through Asian Clearing Union would be discussed.

Sources said the two countries were planning on introduction of bilateral coastal shipping service by February next. In this regard, an existing agreement between the two countries would be amended and signed afresh for the vessels to start plying. Officials of the two countries in October finalised the draft of the Standard Operating Procedure (SOP) for plying the vessels.

They said out of six ports of call primarily selected in Myanmar, Bangladesh initially would use Mongdu, Sittwe, Pathein, and Yangon ports for coastal vessel operation. On the other hand, Myanmar wants to use Chittagong, Teknaf, and Narayanganj ports as ports of call for their vessels.