Corn prices slide to over K800 per viss

The prices of corn keep falling and touch a low of over K800 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 corn was priced at K1,120 per viss depending on the quality. The current market price dipped to the lowest of K850 per viss. The price reflects a decrease of K270 per viss within 45 days.
The drop in prices is attributed to the transaction policy changes. Earlier, export earnings for beans were allowed to be made with the Yuan-Kyat or Baht-Kyat direct payment. Starting from 30 June, transactions for rice, corn, oil crops and beans and pulses are 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 K2,300 in unauthorized exchanges. The large gap between the official and unofficial exchange rates is vividly seen. Therefore, traders have to closely observe the impacts of this move, traders aired 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 accordingly, said U Min Khaing, chair of the Myanmar Corn Industrial Association.
The prevailing FOB price of corn stands at US$310-330 per tonne.
Thailand gives the 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 remaining 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 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. — NN/GNLM