Figure 4 provides an estimate for the volume of chemical fertilizer used for paddy, assuming
that 80% of total supply was allocated for paddy cultivation. The fertilizer applied reached 75 kg per
hectare in the peak year (1985/86) and went down to 30 kg in the early 1990s, and has been
fluctuating widely in the range of between 30 and 60 kg. It is clear from these figures that fertilizer
application per hectare is low in Myanmar in comparison with the international average.16
After the late 1980s, the price of chemical fertilizer increased sharply. As was pointed out
earlier, the rice price also increased very steeply after the mid 1980s. Nevertheless, the price ratio of
rice/fertilizer deteriorated rapidly (Table 9). This means that fertilizer prices increased at an even
faster pace than rice prices.
The government official price of fertilizer was kept low for 15 years until 1987/88 (FADINAP
1987, 14), but after the 1990s, it rapidly increased to a level close to the international price. Since the
government was obliged to withdraw subsidies, the official price was raised frequently 17 in
accordance with rises in market prices. Because of difficulties in securing a sufficient supply, the
government distribution of fertilizer shrank considerably in 2005.18
Changes in diesel oil supply have also influenced paddy cultivation in Myanmar. As is the case
with fertilizer, most of Myanmar’s diesel oil is imported and the domestic price has risen quite
rapidly. In order to support summer paddy production, the government has been providing diesel oil
at a lower cost to those farmers who cultivate summer paddy using pump irrigation. In 2001, for
example, the market price per gallon was 350-600 kyats while the official price was 160 kyats. In
2004, the market price was 1,500-1,600 kyats while government price was 760 kyats. However, the
supply remains insufficient. According to our surveys,19 whereas one acre of pump irrigation
required 6-10 gallons, government distribution remained around 3.5-4 gallons. It should be noted
Figure 4 provides an estimate for the volume of chemical fertilizer used for paddy, assumingthat 80% of total supply was allocated for paddy cultivation. The fertilizer applied reached 75 kg perhectare in the peak year (1985/86) and went down to 30 kg in the early 1990s, and has beenfluctuating widely in the range of between 30 and 60 kg. It is clear from these figures that fertilizerapplication per hectare is low in Myanmar in comparison with the international average.16After the late 1980s, the price of chemical fertilizer increased sharply. As was pointed outearlier, the rice price also increased very steeply after the mid 1980s. Nevertheless, the price ratio ofrice/fertilizer deteriorated rapidly (Table 9). This means that fertilizer prices increased at an evenfaster pace than rice prices.The government official price of fertilizer was kept low for 15 years until 1987/88 (FADINAP1987, 14), but after the 1990s, it rapidly increased to a level close to the international price. Since thegovernment was obliged to withdraw subsidies, the official price was raised frequently 17 inaccordance with rises in market prices. Because of difficulties in securing a sufficient supply, thegovernment distribution of fertilizer shrank considerably in 2005.18Changes in diesel oil supply have also influenced paddy cultivation in Myanmar. As is the casewith fertilizer, most of Myanmar’s diesel oil is imported and the domestic price has risen quiterapidly. In order to support summer paddy production, the government has been providing diesel oil
at a lower cost to those farmers who cultivate summer paddy using pump irrigation. In 2001, for
example, the market price per gallon was 350-600 kyats while the official price was 160 kyats. In
2004, the market price was 1,500-1,600 kyats while government price was 760 kyats. However, the
supply remains insufficient. According to our surveys,19 whereas one acre of pump irrigation
required 6-10 gallons, government distribution remained around 3.5-4 gallons. It should be noted
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