New corn export policy causes trade slowdown
22 Apr 2022
The corn trade in Myanmar has become sluggish as traders need to apply for a license of corn export, said trader from Mandalay market. Starting from 1 April 2022, 12 HS lines
(10 digits) goods are no longer exempted from export license requirement in accordance with Myanmar 2017 Customs Tariff. 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 apply for an export license, and the requirement is applied to every trade channel (by cross-border, by sea, or by air freight). A total of 778 HS line (6 digits) or 1,224 HS line
(10 digits) goods, including corn and wheat related exports, have been notified to seek export license. According to the notification made by the Ministry of Commerce on 9 March 2022, the new measure is aimed at ensuring food security and national security, as well as keeping record of environmental impacts.
Currently, the price of corn is approximately MMK 1,000 per viss (a viss equals to 1.6 kg) and MMK 48,500 – MMK 49,000 per bag. The prevailing price is down by MMK 100 – MMK 150 per viss compared to the rate recorded in early March 2022, Yangon market’s data indicated. “Corn price is likely to decline in the near future due to the tariff. And 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 USD 320-340 per tonne, according to Bayinnaung wholesale market.
Thailand gives green light to corn imports through Mae Sot under zero tariff (with Form-D) between 1 February and 31 August 2022. Normally, Thailand imposed the maximum tariff rate of 73 percent on corn import during the corn season of the country in order to protect local farmers. Myanmar targets to deliver 1.5 million tonnes of corn to external market in the 2021 – 2022 corn season. With reference to Myanmar Corn Industrial Association, the country shipped more than 1.7 million tonnes of corn to Thailand in the last 2020 – 2021 fiscal year. Myanmar exported 2.3 million tonnes of corn to foreign trade partners in the previous financial year. Thailand was the largest corn importer from Myanmar, followed by China, India, and Vietnam, respectively. At present, corn cultivation is concentratedly in Shan, Kachin, Kayah, Kayin, Mandalay, Sagaing, and Magway. Myanmar yearly produces 2.5-3 million tonnes of corn.
ที่มา : BETV Business dated on 21 March 2022