Background and Objective: After the liberalization of domestic and international market in 2003 and completely liberalization rice exports in 2011, Myanmar became an emerging economy in Southeast Asia.To generate export revenue, Paw San rice is considered market-driven export products.Paw San rice is a premium quality rice of Myanmar.Awarded the worldʼs best rice in 2011, the variety has a great potential to generate export revenue.However, despite its popularity, its production in Myanmar is very limited.The study aimed to reveal its economic benefits to farmers and identify factors contributing to the wider adoption of Paw San rice in Myanmar.Methodology: Farm survey data were collected for 561 rice farms from 370 rice farmers in Sagaing and Ayeyarwaddy regions in the monsoon season of 2013.Cost and return analysis of rice cultivation and a binomial logit model of Paw San rice adoption are used.Results: The results show that price and revenue from Paw San rice cultivation are significantly higher than from non-Paw San variety.Variable profit was also higher particularly in Ayeyarwaddy region where it is a traditional variety but not in Sagaing region where it was a recent introduction.The study also found that farmers in Ayeyarwaddy region who recognize the relative advantages of Paw San rice such as resistance to the rice stem borer and a higher market demand and price are more likely to adopt Paw San rice than those who do not.Its adoption in Sagaing region could be accelerated by promoting it to farmers with higher educational attainment, more experience and larger-scale farms.Farmers who avoid crop loss from rain damage by selecting varieties suitable to the areaʼs climatic pattern and the typical planting time are more likely to be Paw San rice growers in both regions.Conclusion: Paw San rice significantly generates higher income for Myanmar farmers.To alleviate poverty and create export revenue, the results suggest that increasing the adoption and supply of Paw San rice may be driven through the development of high yielding Paw San rice variety with good cooking quality and government support to promote positive market signal such as high price.

Economic Analysis of Paw San Rice Adoption in Myanmar

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