Global Rice News

Amid the ongoing armed conflict following the 2021 coup in Myanmar, the country’s economy is being further destabilized by the rapid depreciation of its currency. Recently, Myanmar’s military authorities apprehended 11 individuals, including a Japanese executive, on charges of selling rice at prices exceeding the authorities’ prescribed levels.

According to officials, those detained include rice traders, millers, and retailers, who are accused of selling rice at prices that are up to 70 percent higher than what is considered acceptable by the authorities. The economic instability caused by the ongoing conflict in Myanmar has exacerbated the situation.

One of the detainees is a Japanese executive named Hiroshi Kasamatsu, who works for the supermarket operator Aeon Orange. His arrest has caused tension between Myanmar and Japan. The authorities’ information team revealed that Kasamatsu and three Myanmar nationals are suspected of engaging in price gouging to create economic chaos.

Myanmar, which is an impoverished country in Southeast Asia, has been in a state of turmoil since the military seized power in 2021, overthrowing the elected civilian government led by Aung San Suu Kyi. This event sparked widespread protests that turned violent and have now evolved into a nationwide armed resistance. As a result, over three million people have been displaced from their homes, according to the United Nations.

In an attempt to stabilize the rapidly depreciating currency, Myanmar arrested 35 individuals, including gold and foreign exchange traders, along with agents involved in the sale of foreign real estate, in early June. However, rice traders argue that the discrepancy between the official foreign exchange rate and the black market rates poses significant challenges.

Analysts state that the conflict has also disrupted rice planting, harvesting, and transportation processes, further exacerbating the situation. As a result, rice prices have more than doubled in recent months, according to traders. They claim that selling rice at the officially sanctioned prices would result in operating at a loss.

However, state media has attributed the rising prices to the El Nino weather phenomenon and market hoarders.

Japan’s chief cabinet secretary, Yoshimasa Hayashi, confirmed that a Japanese citizen is currently being questioned by the police in Yangon, Myanmar’s commercial capital. He stated that the Japanese government intends to take appropriate steps to secure the individual’s release, while also urging local authorities to expedite the process. The Japanese government is also in contact with the employer of the detained individual to provide necessary support.

Source: [Source](https://www.aljazeera.com/news/2022/8/1/myanmar-arrests-executive-rice-traders-for-price-gouging)