Value of PIDG investment
Farmers with access to new services
There is tremendous potential for growth inherent in Myanmar’s agriculture and rice industry. Untapped potential in crop production is held back by weak infrastructure, underdeveloped technology and use of machinery, a lack of available credit and poor field management and agricultural practices. The country’s rice yield is below the global average of 3.92 metric ton per hectare, and its milling ratio of around 60% is the lowest in Asia. Despite this, Myanmar is the seventh largest rice producer in the world, and has the potential to become one of the largest exporters of rice globally.
Infra Capital Myanmar, on behalf of InfraCo Asia, piloted a Hybrid Rice Seed Centre and Community Based Organisation (CBO) that combines industry-leading technology with proven best business practices in order to maximise returns for farmers. InfraCo Asia provided early-stage funding support for the development of the project, and worked closely with the partners to overcome initial challenges. Together, InfraCo Asia, and its partners brought the project to the point where Golden Sunland Singapore (“GSS”) is able to take the project to the next stage of commercialisation and operation with the potential to raise new private sector investment.
The hybrid seed market in Myanmar is hugely underdeveloped. Commonly, traders import cheap hybrid seeds, to be sold locally for quick profit. These varieties usually result in an inferior yield due to their unsuitability for the local climate.
This project will commercialise a locally proven rice strain developed in Myanmar, with foreign expertise, to improve yield and quality of rice within a selected CBO. The project will introduce more efficient and environmentally sound farm management mechanisms. It will collectivise farmers within a select community with the aim of improving production volumes and the livelihood and living standards of producers; modelling an alternative to the smallholder model of rice production in Myanmar.
(As project partners,) GSPI and SAT are grateful for InfraCo Asia’s seed funding at the start of the Myanmar Hybrid Rice Seed project. InfraCo Asia leaves a legacy of improving the lives of the farmers and their families in the Myanmar farming community. We will strive to further build on these foundations as we take the project forward