Corn price slides to over K900 per viss

 

July 14

 

THE price of corn touched a low of over K900 per viss (a viss equals 1.6 kilogrammes), according to the Yangon Region Chambers of Commerce and Industry (Bayintnaung wholesale commodity centre).

 

In early June, the corns were priced at K1,120 per viss depending on the quality. The current market price dipped to the lowest of K960 per viss.

 

The directive released on 30 June said that transactions for the exports of agricultural produce including corn, rice, bean and oil crops are to be made in dollars instead of Yuan-Kyat/ Baht-Kyat as border transaction settlement negatively affected the corn prices.

 

Additionally, the foreign currency earnings are set to be converted into local currency at K1,850. The US dollar is valued at over K2,000 in unofficial forex markets. The large gap between the official and unofficial exchange rates is vividly seen. This being so, traders have to closely observe the impacts of this move, traders shared their opinions.

 

Corn harvest season is coming soon in Thailand, the leading buyer of Myanmar’s corn. The prices of corn in Thailand are also declining, said U Min Khaing, chair of the Myanmar Corn Industrial Association. It is too close to call at the moment, he added. The prevailing FOB price of corn stands at US$340- 360 per tonne.

 

Thailand gives green light 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.

 

Therefore, only two months (July and August) are left for corn exports under Form D exemption.

 

Myanmar conveyed 1.7 million tonnes of corn to Thailand in the 2020-2021 Financial Year. In the current corn season, Myanmar targets to ship 1.5 million tonnes of corn to Thai market, U Min Khaing added.

 

Myanmar exported 2.3 million tonnes of corn to foreign trade partners in the 2020-2021 corn season. The majority of them were sent to Thailand, according to the 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. — NN/GNLM