Myanmar intends to reach an export target of one million tonnes of corns to Thailand this year, said U Min Khaing, chair of the Myanmar Corn Industrial Association (MCIA).
At present, Myanmar exports the corn to Thailand through Myawady and Tachilek land border. About 5,000-6,000 tonnes of corns are daily sent to Thailand through Myawady, while the Tachilek border does not see a regular export.
Myanmar is allowed for corn export between 1 February and 31 August with Form-D, under zero tariff.
Myanmar corn exports were exempted from tax between February and August. Thailand imposed a 73 per cent of tax on corn import to protect the rights of their growers if the corns are imported during the corn season of Thailand. The maximum tax rate of 73 per cent is put under 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 in the current FY2020-2021 (Oct-Sep), the association stated.
“Thailand needs 2 million tonnes of corn as per its market data. We, however, do not know their purchase volume. Last year, Thailand partners asked if Myanmar corn suppliers can provide 3 million tonnes during negotiation with the association. We cannot tell the exact volume. Nevertheless, about 1 million tonnes of corns are possibly to flow into Thailand,” the MCIA chair elaborated.
Myanmar’s corn exports are solely relying on the Thailand market as the exports to Singapore, Malaysia and Viet Nam are halted. A tonne of corn fetches US$250.
Myanmar exported 2.2 million tonnes of corns to the foreign market in the past Financial Year 2019-2020 ended 30 September, with an estimated value of $360 million, the Ministry of Commerce’s data showed.
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 yearly produces 2.5-3 million tonnes of corns.—NN/GNLM
