MYANMAR Corn Industrial Association (MCIA) signed a Memorandum of Understanding with seven foreign companies for the international trade in corn, according to the Ministry of Commerce (MoC).

Regarding corn export, the MoU signing ceremony between the MCIA and companies from China, Thailand and Viet Nam was held on 12 December at the Myanmar Trade Promotion Organization meeting hall under the MoC in Nay Pyi Taw.

The Director-general of the Myanmar Trade Promotion Organization addressed that agriculture is the backbone of Myanmar. It is delightful that the MCIA led a business-to-business pact to export corn to China, Viet Nam, and Thailand. This MoU will bring about market stability and trade enhancement. The Director-general instructed the association to strictly adhere to the rules and regulations to reap a fruitful result.

The chairman of the MCIA emphasized that there are over two million acres of corn in Myanmar, with an estimated yield of over three million tonnes. The local consumption is about one million, so the remaining is exported to the external markets. This MoU will generate over US$600 million in revenue annually for the State. Because of the market transparency, the agreement will benefit both parties with mutual interest. The association pledged to strengthen the cooperation according to the MoU.

Myanmar has shipped 903,699 tonnes of corn to its trade partners as of 1 December in the current financial year 2023- 2024 beginning 1 April, earning $271.321 million, the Ministry of Commerce stated.

Following the FOB price dip, the corn prices stood at K1,080- 1,100 per viss in the domestic market, according to the Yangon Region Chambers of Commerce and Industry (Bayintnaung Commodity Centre). Myanmar delivers corn to China and Thailand through the border and ships corn to China, India, Viet Nam and the Philippines via maritime trade, according to the Myanmar Corn Industrial Association.

Thailand nodded corn imports under zero tariff (with Form-D), between 1 February and 31 August. However, Thailand imposes a maximum tax rate of 73 per cent on corn imports to protect the rights of their growers if the corn is imported during the corn season of Thailand.

China has been purchasing Myanmar’s corn through cross-border trade under the opium substitution program. Legitimate corn trade between Myanmar and China commenced at the end of 2022. A total of 112 Myanmar companies have been permitted for corn exports.

Myanmar exported more than two million tonnes of corn to foreign trade in the 2022 corn season. The majority of them were sent to Thailand, and the remaining went to China, India, the Philippines and Viet Nam.

The 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 produces 2.5-3 million tonnes of corn every year.

NN/EM

#TheGlobalNewLightOfMyanmar