Corn prices down by over 37% in nearly two months

 

July 29

 

The prices of corn are down by over 37 per cent compared to the rate recorded last month, corn traders said.

 

In early June, the corns were priced at K1,120 per viss (a viss equals 1.6 kilogrammes) depending on the quality. The market price plunged around K700 per viss in the last week of July. The price reflects a decrease of K420 per viss in nearly two months.

 

Corn trade is falling through seaborne international trade and border posts this month, traders shared their opinions.

 

The drop in prices is attributed to the transaction policy changes. Earlier, export earnings for beans were allowed to be made with Yuan-Kyat or Baht-Kyat direct payment. Starting from 30 June, transactions for rice, corn, oil crops and beans and pulses are instructed to be paid in US dollars.

 

Additionally, the foreign currency earnings are set to be converted into local currency at K1,850. The US dollar is valued at over K2,500 in unauthorized exchanges. The large gap between the official and unofficial exchange rates can be seen vividly, traders aired their opinions.

 

As a result of this, corn exports nearly came to a halt at the moment. Earlier, approximately 200-300 truckloads of corn were delivered daily to Thailand.

 

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 one month (August) is remaining for corn exports under Form D exemption.

 

In the 2021-2022 corn season, Myanmar targets to export 1.5 million tonnes of corn. 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 and the remaining were shipped to China, India and Viet Nam, 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. — GNLM