COVID, conflict, and politics strain Myanmar's rice workforce
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Khit / Yoon (NP News) - June 29
U Ye Min Aung, Chairman of the Myanmar Rice Federation, told NP News that it is necessary to provide financial support for a transition to Agricultural Mechanization as a remedy to counter growing labour shortage.
Since the Covid-19 pandemic, Myanmar has faced a growing shortage of agricultural labour due to the deteriorating security situation and ongoing political conflicts.
"Labor shortages in rice production are a global challenge, affecting countries like Thailand and Vietnam. The COVID-19 pandemic exacerbated this issue, particularly for agricultural businesses. Now, political instability in rural and urban areas is further straining the agricultural workforce," U Ye Min Aung said.
With a relatively slow population growth rate of only 0.6 percent annually, Myanmar is looking to transform its agricultural sector by reducing reliance on manual labor and embracing mechanization.
U Ye Min Aung acknowledges the need for significant investment. He emphasizes “The financial support through short, medium, and long-term loans will be able the farmers' adoption of mechanized farming. He highlights that, as seen in other countries, government backing is crucial for agricultural mechanization. While mechanized farming, technological advancements, and financial support for acquiring machinery are essential, the labour shortage remains a persistent challenge that has to be handle sooner or later”.
Both the Myanma Economic Bank and the Myanma Agricultural Development Bank are actively involved in facilitating loans to farmers for farming equipment purchases.
Myanmar's industrial zones, including those in the agricultural sector, are facing with a growing skilled labor shortage, which has intensified since the enactment of the People's Military Service Law in February 2023.
Since agriculture is one of Myanmar's major industries, 60 percent of the country's GDP reportedly depends on it.
Myanmar cultivates roughly 15 million acres of monsoon paddy annually, yielding around 1.088 billion tonnes of rice. Additionally, the country grows about two million acres of summer paddy, producing approximately 213 million tonnes of rice.