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Eponine #67 Myanmar Banana

When I walked through Shan State and Sagaing Region in Myanmar, I saw a farm that was hijacked by Chinese people. How was it hijacked? I heard this story as an example of the mechanism.

First, a Chinese buyer came to the farmers and asked them to divide the crops a little because they wanted to export them to China.

Farmers were willing to sell small quantities of crops, as the buying prices offered by Chinese buyers were much higher than they would sell to brokers in Myanmar.

At the beginning of the following year, the Chinese buyer came back and asked the farmers to sell more this year because the crops they bought last year had a good reputation.

Farmers thought that they would be able to buy it at the same high price as last year, so they decided not to sell it to Myanmar brokers, but to sell the whole harvest to Chinese buyers.

After the harvest, a Chinese buyer came in and said he couldn't buy at the same price as last year because the price plummeted in China, and he said he would buy it at a much lower price than selling it to a Myanmar broker.

Farmers who can't sell to Myanmar brokers now have to sell to Chinese buyers at cheaper prices, and can't pay for seeds and fertilizers they bought at the beginning of the year.

The farmers were no longer thinking of running away at night, but a Chinese buyer came. Then he offered to the farmers to pay for the seeds and fertilizers in advance. Or, by various means such as lending the amount of money, the peasant's plight is taken advantage of, and eventually the farmland is taken away.

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The crops sold from Myanmar to China are heavy but cheap, such as bananas, watermelons, corn, beans and rice.

In other words, exporting to China does not mean that farmers' incomes will increase significantly. On the contrary, they carry various risks associated with the wise Chinese.

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Yesterday, President Xi Jinping said he would increase the purchase of agricultural products from ASEAN. However, given the current situation of Burmese working on Chinese-owned farms, it should not be considered a bit dangerous to rejoice that the statement is a good story.








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