CNI News

27 June 2023

Over 500 trucks of corn have not been able to be exported to Thailand as yet because there was a wrong export license name in applying for a license of corn export and  an export permit has not been issued, said corn traders.

Although ministry of commerse has agreed orally to re-export over 500 trucks of corn, because there are some delays in procedure, the corn traders have not been able to export the corn to Thailand as yet, said a corn trader from Myawady, to CNI News.

" At present, although the policy is relaxed, there are delays due to the procedure. over 500 trucks of corn are stranded in Myawady. The corn had to be dropped off in the warehouses in Myawady. There are about 16,000 tons of corn totally and the current market price is about 5.3 million US dollars" he said. Because the government has not issued the corn export permits, corn export has been reportedly stopped since 16th June.

While seeing Burmese corn

According to Myanmar's policy on export license, a trader or buyer from abroad must pay 100 percent of the value of the goods in advance. Thai traders do not transfer the money in advance for the goods that has not been licensed to be exported, said traders.

So, Myanmar exporters transferred the money needed on behalf of buyer so that they can get the license. But the company that transferred the money to buy the goods was not the same as the name described in the license, said U Thant Zin Tun, vice chairperson of Myanmar Corn Industrial Association to CNI.

" According to export policy, a buyer from the other country has to pay in advance for the goods that he will buy after which the goods has to be exported from this side. But few practsies like that on the ground. Buyers from other countries hardly buy the goods from Myanmar after paying in advance.

While buying corn

That's why, the trader who want to sell his goods exchanges his money into State-designated currency such as dollar or yuan or baht and asked a company from the other country to transfer that money to the account here so that he can get the license. Afetr getting the license, the goods are exported. When our goods arrive at the other count, we sell our goods to another company really buying corn that will be convenient for us. But when the other side designate that we will sell the company that transferred the money only, we find it difficult a little. But we've heard that they would relax. I wonder if they might issue an official statement." he said.

For the company that transferred the money in advance will have to be sold, that company has reduced the corn price. So,it is next to impossible to raise the corn price, said corn traders.

Because the deadline for exporting corn to Thailand with tax exemption is August 31, they need to get the corn export licenses before the deadline, said corn traders.