Corn growers suffer impacts of junta’s changed regulatory framework

By Admin 14 Jun 2023

DMG Newsroom
14 June 2023, Sittwe

Myanmar’s military regime has increased the price of corn export licences, and businessmen engaged in the corn industry say the move will negatively affect corn growers.

The regime increased the price of corn export licences from US$300 per tonne previously to US$310 on June 12, according to traders.

“Traders will make sure their profits are not affected by the move. However, corn growers will suffer. Corn prices will further decline,” said corn merchant Ko Toe Tet Naing from Taunggyi in southern Shan State.

Under the new price scheme set by the regime, corn merchants said, they may make a loss of 5,500 to 6,000 kyats per tonne because of currency exchange mandates. The losses can be greater if corn prices decline in foreign markets.

Traders are required to exchange 65 percent of their US dollar export earnings to kyats at the exchange rate of 2,100 kyats per dollar set by the junta-controlled Central Bank of Myanmar. In the market, the exchange rate is between 2,955 kyats and 2,965 kyats.

“Corn prices could further decline, and farmers will suffer. Traders will offer lower prices to corn growers to offset the increased cost for export licences,” said corn merchant Ko Win Zaw Htay from Kachin State’s Myitkyina Township.

A viss of corn sells for 1,220 kyats in Yangon market, 1,320 kyats in the Myawaddy market, 1,100 kyats in the Lashio market, 1,050 kyats in the Taunggyi market, and 1,150 kyats in Ayeyarwady Region.

Business is slow currently as it is now harvest tim3, and corn prices could further decline, according to merchants.

Corn grower U Maung Thein from Taunggyi Township said: “It costs 300,000 kyats to grow an acre of corn. The cost does not include labour costs. It costs 8,000 kyats [per day] to hire a person. I have grown 18 acres. It cost 5 million kyats. If corn prices decline further, I doubt we can make any profit.”

Corn is grown in Ayeyarwady, Sagaing, Mandalay regions, and Shan and Kayah states. Myanmar exports corn to Thailand, India, China, Vietnam and Bangladesh.