Agriculture & Forestry
From The Report: Myanmar 2017
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The agriculture sector is already gaining ground from relaxed trade policies. Future potential, however, will depend on the ease of its transition from a supply-led industry to one determined by demand. For the short term, Myanmar will rely on consumption trends in India and China. It is unclear how long it will take the country to successfully penetrate international markets outside of Asia, although the process to get there is more than apparent. In line with this objective, local and international investors, with the support of the government and development agencies, are accelerating efforts to promote farming inputs, improve productivity and strengthen supply chains.

This chapter contains an interview with Sunil Seth, President, Overseas Agro Traders Association of Myanmar.

Articles from this Chapter

Overview

Turning point: Unlocking potential to raise productivity and increase exports
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Myanmar’s fertile soils hold significant potential to lift the country’s economy from a basic grain producer to a high-value goods exporter. However, the evolution of farming has long been stifled by limited public spending, a legacy of unconstructive land policy, partial infrastructure gaps and limited access to finance. In addition, many farmers still lack modern cultivation techniques, sowing and harvesting by hand. All of this has translated into low yields per hectare and poor-quality crops…

Interview

Finger on the pulse: Sunil Seth, President, Overseas Agro Traders Association of Myanmar, on boosting the sector’s competitiveness
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Interview:Sunil Seth What measures could be taken to entice foreign investment in Myanmar’s agriculture sector? SUNIL SETH: The agriculture sector is extremely important for Myanmar, contributing 41% of GDP. Farmers’ land holdings are small and fragmented. One area the government should consider is allowing contract farming, whereby foreign companies can work directly with farmers to provide better inputs like seeds, nutrients and technical support to improve the quality and productivity…

Analysis

Filling the funding gap: Increasing the credit options available for smallholders
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While the financial services industry in Myanmar continues to move forward, the provision of funding remains the biggest roadblock to small-hold farmers. For the most part, banks lack flexibility due to rigid interest rates and overprotective collateral-based lending, which hinders their ability to provide finance to farmers. Likewise, a lack of tenure security accentuates the limited amount of rural loans. In addition, mistrust of the financial system saturates the market, stemming from Myanmar’s…

Analysis

Taking action: Authorities have implemented logging and export bans in an effort to slow down deforestation
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Myanmar’s timber industry has long lined the pockets of loggers, both legally and illegally. In recent times, however, deforestation has spun out of control, and the vast forests of the country’s landscape are gradually shrinking. According to the Ministry of Natural Resources and Environmental Conservation’s Forestry Department, 58% of the country was covered by forest in 1990, but by 2010 this figure had fallen to 47%. Deforestation has mainly been caused by illegal loggers who earn millions…