Corn price hikes up in Mandalay market due to strong demand

LOCAL NEWS

The prices of Myanmar’s corn are climbing up in the Mandalay market on the back of strong demand by Thailand, coupled with the growing demand in the domestic market, traders from Mandalay depot said.
Prior to Thingyan Festival in April, the corn fetched K28,000 per three-basket 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 at K31,000 per bag on 27 May, Soe Win Myint depot from Mandalay stated.
“The mills resume their businesses and start buying the corn to be used as raw material. The increased demand dove the price up in the market. The growers, as well as the traders, are satisfied with the current price. The growers need to manage fall armyworm that can threaten corn production in rainy season”, the owner of Soe Win Myint depot stressed.
Myanmar’s corn exports to foreign countries generated more than US$246.9 million in the first five months (Oct-Feb) of the current financial year 2020-2021, Myanmar Customs Department’s statistics showed.
Myanmar’s corn exports by sea have come to an end due to the lack of demand, said Chair U Min Khaing of Myanmar Corn Industrial Association said.
Myanmar is conveying corns to Thailand through the land border, with a tonne of corn fetching up about 8,000 baht.
Thailand gives the green light to corn imports through Maesot under zero tariff (with Form-D), between 1 February and 31 August.
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 in order 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. 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 yearly produces 2.5-3 million tonnes of corns.
The corn crop is demanded chiefly by the feedstuff processing business. This being so, it is the potential business for domestic and external markets, said an official of the Ministry of Commerce.
During last FY 2019-2020 ended 30 September, the country exported 2.2 million tonnes of corn 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 $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

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