With only over two weeks remaining to export Myanmar’s corn to Thailand under Form D customs tariff benefit, the corn market falters, traders explained.
Thailand gives the go-ahead to corn imports under zero tariff (with Form-D), between 1 February and 31 August. However, Thailand imposed a maximum tax rate of 73 per cent on corn imports to protect the rights of their growers if the corn is imported during the corn season of Thailand. There are only 20 days remaining to enjoy that customs benefit.
Additionally, torrential rain on 7 August destroyed some road sections to Myawady, a major border point between Myanmar and Thailand. Therefore, landslides blocked the corn’s trade route and repair works are being undertaken. As a result of this, the market is slowing down.
The prevailing prices of corn stand at K1,200-1,220 per viss in the domestic market while the FOB corn prices were US$290-310 per tonne, according to Yangon Region Chambers of Commerce and Industry (Bayintnaung Commodity Depot).
Myanmar conveys corn to China and Thailand through the border and also sends corn to China, India, Vietnam and the Philippines by maritime shipping presently, according to the Myanmar Corn Industrial Association.
China is purchasing Myanmar’s corn through cross-border trade under the opium substitution programme. Legitimate corn trade between Myanmar and China commenced at the end of 2022. A total of 112 companies have been given the go-ahead for corn exports.
Myanmar exported more than two million tonnes of corn to foreign trade in 2022 corn season. The majority of them were sent to Thailand and the remaining went to China, India, the Philippines and VietNam.
More than two million tonnes of corn are expected to be shipped to foreign trade partners in the 2023 corn season, said U Min Khaing, patron of the Myanmar Corn Industrial Association.
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.
Source: The Global New Light of Myanmar