Corn growers suffer from falling prices 

By Admin 07 Oct 2023

DMG Newsroom
7 October 2023, Sittwe

Corn growers in Myanmar are suffering from declining corn prices as a result of slowing demand from foreign countries.

The corn harvest has just begun, and the farm gate price is 880 to 900 kyats per viss, whereas corn with high moisture content sells for just 640 kyats.

Corn growers said corn cultivation costs were higher due to increased prices for seeds, pesticides and fertilisers.

“Under the current prices, it can hardly cover the costs of seeds and fertilisers. Corn prices are low, but the prices of other foods are increasing. Corn farmers will be badly hit,” said corn grower Ko Sai Mon Lae from southern Shan State.

The cost of growing corn has increased from a maximum 400,000 kyats per acre to between 600,000 and 800,000 kyats this year, according to farmers.

Exporters have suspended corn exports to China due to high transportation costs from Mandalay to Muse, and corn prices have declined as a result.

Another factor is that the tax exemption granted by the Thai government on corn exports from Myanmar expired in August.

“Not to mention the new harvest, even existing stocks were not exported to Thailand due to low profitability,” said corn merchant U Ye Moe from Mandalay.

In Shan State’s Taunggyi and Lashio townships, two of the country’s major corn-growing areas, a viss of corn only sells for 800 to 900 kyats, according to merchants.

Corn prices have also declined in the Mandalay market. “We can’t pay higher prices for corn because of the exchange rate. As the value of the kyat is lower according to the market exchange rate, we can’t pay higher prices,” said corn merchant U Toe Tet Naing from Taunggyi.

Exporters got US$325 for a tonne of corn previously, but the price is between 265 and 285 dollars this harvest season, as corn prices have also declined on the global market, according to corn merchants.

Thailand and China are major buyers of Myanmar corn, with Myanmar also shipping corn to Vietnam and Malaysia by sea.

Corn is mainly grown in southern and northern Shan State, as well as in Kachin and Kayah (Karenni) states, and Ayeyarwady and Mandalay regions. Myanmar has 2.8 million acres of corn fields.