Syria enforces levy on corn imports

In an effort to encourage local production and generate revenue for the national treasury, Syria has recently imposed import duties on corn.

According to US Grain Council (USGC), the duties were originally set at US$77/tonne but have since been scaled back due to industry pressure. They are currently at US$22/tonne for corn.

According to Joe O'Brien, USGC regional director in the Middle East and Subcontinent, local importers and manufacturers of feed and starch products feared their products and exports would become uncompetitive as a result of the duties, giving impetus to smuggling.

In response, they lobbied their government for a levy reduction. O'Brien said there is continued industry pressure to have these duties removed entirely.

He explained that domestic production of both grains has been flat within the past few years as imports have increased, adding that local corn production in the past five years has varied from 125,000 tonnes to 200,000 tonnes. Harvested grains have been of poor quality with poor drying and storage.  Production has not been able to satisfy the demand of around 2 million tonnes.

While the US has lost market share in Syria, dropping from 80% to about 27.4% (494,000 tonnes) for corn in 2009, O'Brien reported that traders feel these new duties will not have much of an impact.

Market intelligence has shown that any loss of US market share in the country can be attributed to price, access to the Black Sea and attractiveness of smaller vessel purchases.

According to O'Brien, Syria's levies have not come as a complete surprise as the Syrian government has taken similar measures in the past. As Syria currently imports about 1.8 million tonnes of corn, the USGC will continue to monitor the Syrian market and service customers in the country.