Corn price breaks above K1,000 per viss

Corn price has risen to over K1,000 per viss (a viss equals 1.6 kilogrammes), according to the Yangon Region Chambers of Commerce and Industry (Bayintnaung Commodity Wholesale Centre).
Between the third week of July and the second week of August, the price stayed below K900 per viss. On 30 August, the price soared back to K1,000-1,020 per viss.
Kyat depreciation against the US dollar in the local forex market is a contributing factor to the price rise. The Central Bank of Myanmar raised the reference exchange rate from K1,850 to K2,100 on 5 August.
Transactions for the exports of agricultural products including corn, rice, bean and oil crops are to be made in dollars instead of Yuan-Kyat/Baht-Kyat cross-currency settlement in border transactions like the dollar payment method practised in trade by sea, according to the directive released on 30 June.
Additionally, foreign currency earnings have to be converted to the local currency according to the reference rate of the CBM.
As a result of this, there is a large gap between the regulated rate and the unofficial rate, while a US dollar is worth over K4,000 in the grey market. This action affected exports of agricultural products, so export has fallen, traders stressed.
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. The tax exemption period for corn has expired.
Out of the companies that have submitted the Express of Interests, 86 have been forwarded to the General Administration of Customs of the People’s Republic of China (GACC) to seek permits for legitimate corn exports to China. Those companies are left to receive a registration code at the final stage, said Chair U Aye Chan Aung of the Myanmar Corn Industrial Association.
Upon issuing the registration code this month, the corn export to China is expected to commence in September, the association expected.
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 and Viet Nam.
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