Corn prices edge up on strong foreign demand

May 19


THE prices of corn are escalating on the back of strong foreign demand, said U Min Khaing, chair of the Myanmar Corn Industrial Association.


Myanmar’s corns are demanded by the Philippines, India and Viet Nam at present and the sea trade is used for shipment. China and Thailand are also purchasing them through cross-border trade.


“The price of corn has risen for now. The export demand elevated the price a bit,” he said.


The prices of corn touch a high of K1,050 per viss (a viss equals 1.6 kilogrammes) in the Yangon market, which is higher than those recorded in the previous years, he added.


The FOB prices were approximately US$320-340 per tonne, according to the Yangon Region Chambers of Commerce and Industry (Bayintnaung).


The foreign demand and Kyat depreciation against foreign currencies (US dollar, Baht and Yuan) drove the corn prices up, U Min Khaing continued.


Myanmar exported 2.3 million tonnes of corn to foreign trade partners in the 2020-2021 financial year. The majority of them were sent to Thailand and the remaining went to China, India, Viet Nam and the Philippines.


Thailand gives green light to corn imports through Maesot under zero tariff (with Form-D), between 1 February and 31 August.


Thailand has granted tax exemption on corn imports between February and August. However, Thailand imposed a maximum tax rate of 73 per cent on corn import to protect the rights of their growers if the corn is imported during the corn season of Thailand.


Myanmar shipped over 2.2 million tonnes of corn in the 2019-2020FY, with an estimated value of $360 million, according to the trade data of the Ministry of Commerce.


At present, corn is cultivated in Shan, Kachin, Kayah and Kayin states and Mandalay, Sagaing and Magway regions. Myanmar has three corn seasons- winter, summer and monsoon. The country produces 2.5-3 million tonnes of corn every year. — NN/ GNLM