ReliefWeb

Jonathan Keesecker

During July 7-9, 2021, Mercy Corps’ Market Analysis Unit (MAU) conducted phone interviews with 23 agricultural input suppliers in Rakhine State to measure the impact of recent events on agricultural supply chains. Data are based on a convenience sample of 9 suppliers from Sittwe Township and 14 suppliers from six additional townships. This snapshot is a follow-up to earlier interviews with retailers published in a November 30, 2020 MAU snapshot.

Key Highlights

• Two-thirds of respondents reported lower sales in July 2021 compared to last year for seed, pesticides and both urea and compound fertilizers;

• Seventy-eight percent of respondents say suppliers require advance cash payment, although just 49% require advance cash payment of the farmers to whom they sell;

• One-third of respondents said shipping times for agricultural inputs have slowed since November 2020, although some also reported faster times for seed shipments;

• Almost all respondents said high prices and limited cash are major challenges;

• Seventy percent of respondents have cash to operate for three months or longer, however they voiced concerns about their customers’ access to cash;

• More respondents struggled with price increases in July 2021 than November 2020, although other challenges related to transportation were less frequent in July 2021;

• Eighty-six percent of respondents expect major challenges from COVID-19 in the remaining paddy season, and two-thirds worry about the impact of political events;

• Eighty-three percent of respondents expect lower profits in 2021 than 2020;

• Most respondents say better access to cash and loans for farmers could help reduce the challenges faced by agricultural input retailers in Rakhine State.