September 25, 2024

Myanmar's corn prices remain high as zero-tariff export period to Thailand ends

The period of zero-tariff export of corn to Thailand has concluded, but Myanmar traders report that corn prices in the local market remain elevated, Mizzima reported.

Between February 1 and August 31, 2024, Thailand allowed corn imports from Myanmar under a zero-tariff arrangement (with Form-D). During this time, Myanmar traders exported corn to Thailand without paying customs duties.

Now that the zero-tariff period has ended, exporters may halt corn shipments to Thailand and instead focus on exporting to markets in India and Vietnam.

Border trade for corn has been minimal due to unrest and ongoing conflicts along the trade routes. Exporters have opted for maritime trade, using the Yangon-Kawthaung-Ranong shipping route to export corn to Thailand. The final shipment of corn from Yangon port was dispatched at the end of August.

During the zero-tariff season, 1.8 million tonnes of corn were exported to Thailand, primarily through maritime trade, with very little trade occurring via land borders. Statistics from the Ministry of Economy and Commerce confirm that most of the corn was exported through this method.

Despite low corn production in Myanmar this season, demand from foreign markets and domestic feed processing factories remains strong. Corn exporters expect prices to continue rising.

In the Yangon market, corn kernel prices have increased to 1,750 Kyats (US$0.83) per viss (approximately 1.6 kg), up from below 1,300 Kyats (US$0.61). The Freight on Board (FOB) price at Yangon port ranges between US$270 and US$280 per tonne.

Myanmar's annual corn production typically ranges between two to three million tonnes.

-      Mizzima