Porter's Five Forces Frame Work on Analysis of Rice Exporting Industry in Myanmar

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Chapter 1

1. Rationale of the Study
In most of the developing countries, the agricultural sector has been playing a major role in the economic development. In Myanmar, rice is staple food and also a leading career of foreign exchange and the most important crop to millions of farmers and to some landless who earn their income from working as seasonal laborers. As 70 percent of the Myanmar population is engaged in the agricultural sector, agricultural development helps to raise the living standard of farmers. The country’s rice production has huge potential for development of agricultural sector. In order to develop the rice economy, the expansion of cultivated areas and application of high yielding verities are required. Improvement of rice productivity is a major component or engine of true growth and development.

After 1988, the government adopted the market oriented economic policies with the appropriate measures, while its direct involvement was gradually reducing. In this area, the government also encourages private sector to play a larger role. From then on, the activities of private sector have been more functioning compared to centrally planned economy era. To enhance the agricultural industry, the Myanmar Rice Industry Association (MRIA) was created as a national body uniting three existing separate associations :– Myanmar Rice and Paddy Traders’ Association, Myanmar Rice Millers’ Association and Myanmar Paddy Producers’ Association. Besides, in this era, rice specialization companies take part in an important role in agricultural industry. To promote development for attaining socio-economic benefits of country, it needs the supply chain from cultivation to harvesting, storing, trading and exporting by participating cooperatively from farmers to exporters.

From the production point of view, farmers need sufficient working capitals to use chemical fertilizers, quality seed, agro-inputs, and adopt proven...
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