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New corn export policy causes trade slowdown

20190207 sskm

Corn plantations are thriving with buds in the farm.

As traders need licence for corn exports, the trade has become sluggish at the moment, said a trader from Mandalay market.
According to 2017 Customs Tariff of Myanmar, 12 HS lines (10 digits) are no longer exemption from export licence starting from 1 April 2022. Those items include maize, starch, corn, seed, maize and corn flour, cereal grains, millets, cereal groats, meal and pellets, buckwheat and canary seeds. Traders must seek export licence whatever trade routes (maritime, border or air) they use.
A total of 778 HS line (6 digits) or 1,224 HS line (10 digits) including corn and wheat related export has been notified to seek export licence with a view to ensuring food security and national security and measuring environmental impacts, according to a notification released by the Ministry of Commerce on 9 March 2022.
At present, the price of corn is approximately K1,000 per viss (a viss equals to 1.6 kg) and K48,500-K49,000 per bag. The prevailing price is down by K100-K150 per viss compared to the rate recorded in the early March 2022, Yangon market’s data indicated.
“Next, corn price is likely to slide due to tariff. If more policies are laid down to control the corn price and export, the price will certainly drop,” a market observer shared his opinion.
The corn FOB price stands at US$320-340 per tonne, according to Bayintnaung wholesale market.
Thailand gives green light to corn imports through Mae Sot 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 the 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.
Myanmar targeted to deliver 1.5 million tonnes of corn to the external market in the current 2021-2022 corn season.
Last 2020-2021 financial year, the country shipped more than 1.7 million tonnes of corns to Thailand, Myanmar Corn Industrial Association stated.
Myanmar exported 2.3 million tonnes of corns to foreign trade partners in the previous FY. 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 yearly produces 2.5-3 million tonnes of corns.—GNLM

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