Corn price continues bullish amid low supply

The price of corns remains upward trend at K35,100 per 54-viss bag (a viss equals 1.6 kg) on the back of strong demand amidst the low supply.
The prices of Myanmar’s corn are climbing up in the Mandalay market due to high demand by Thailand and China, coupled with the growing demand in the domestic market, traders from Mandalay depot said.
Before Thingyan Festival in April, the corn fetched only K28,000 per bag. Both the foreign demand and domestic demand prompted the sellers to raise the prices starting from the first week of May. Following a gradual upward trend, the corn was priced above K35,000 per bag on 21 June, Soe Win Myint depot from Mandalay stated.
Myanmar has been delivering corns to the neighbouring countries Thailand and China via the land border. The shipment to Singapore, Malaysia and Viet Nam abruptly stopped owing to zero demand, Myanmar Corn Industrial Association stated.
At present, Myanmar is conveying corns to Thailand through the land border, with a tonne of corn fetching up around 8,000 baht. The arrival of trucks declined from 500 to over 100 amid low supply.
Myanmar’s corn exports to foreign countries generated revenue of more than US$331.49 million in the first half (Oct-Mar) of the current financial year 2020-2021, Myanmar Customs Department’s statistics showed.
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 corns are imported during the corn season of Thailand, as per the notification of the World Trade Organization regarding corn import of Thailand, said a corn exporter.
With the local corn consumption growing, Myanmar’s corn export to foreign markets is expected to reach 1.6 million tonnes this year, the association stated.
Myanmar is the second-largest exporter of corn among regional countries. At present, corn is cultivated in Shan, Kachin, Kayah and Kayin states and Mandalay, Sagaing and Magway regions. Myanmar has three corn seasons— cold season, summer and monsoon. The country yearly produces 2.5-3 million tonnes of corns.
The corn crop is mostly demanded by the feedstuff processing business. This being so, it is a potential business for both domestic and external markets, said an official of the Ministry of Commerce.
During last FY2019-2020 ended 30 September, the country exported 2.2 million tonnes of corns to the external market, with an estimated value of $360 million, the Ministry of Commerce’s data showed.
As per data from the Ministry of Commerce, Myanmar exported 1.5 million tonnes valued at $270 million in the 2018-2019FY, 1.4 million tonnes of corn worth over $290 million in the 2017-2018FY, 1.2 million tonnes of corn worth $250 million in the 2016-2017FY, and, 1.1 million tonnes of corn worth $300 million in the 2015-2016FY. — HH/GNLM