CNI News
27 September 2023
China will buy about 60,000 tons of corn from Myanmar as a substitution crop for poppy this year reportedly.
China is buying corn grown in Shan and Kachin States yearly and bought over 30,000 tons of corn last year.
There have been discussions to promote buying corn this year, according to the Myanmar Corn Industrial Association.
However, because the price China pays is lower, to sell corn from Shan and Kachin States will not be convenient and although the corn price is 1,150 kyats per viss in the domestic market, the price China want to pay is around 1,000 kyats only, said U Thant Zin Tun, vice chairman of the Myanmar Corn Industrial Association, to CNI News.
Myanmar corn plantation
" It's not too bad that China will buy 60,000 tons of corn when we can't export corn to Thailand through Myawady. Myanmar corn has started appearing. The corn in Bamaw and Waingmaw has started appearing a bit. And roast corn has started appearing in northern Shan State. In the previous years, about 30,000 or 40,000 tons of Myanmar corn were exported. We are told to export corn through Chinese border gates - Lweje, Kan Pite Tee, Muse and Chin Shwe Haw. But the price is not very convenient. We can't export because the price is low. Corn cannot be bought in Myanmar at the price China gives. China gives about 1,000 kyats a viss. Domestic price is about 1,150 kyats.I haven't heard of much trading." said U Thant Zin Tun.
Although the corn price that China offers is the world corn price, because of current export earnings policy of Myanmar, it is not convenient, said corn traders. If the world corn price go up, the price China offers will increase and if the price doesn't increase, corn will be exported at the price they offer, said a corn trader, to CNI News.
Myanmar corn
" Exporters are planning to export, I think. But it hasn't realized exactly. They are still watching. The price is not convenient for them because of export earning policy. Exporters don't get full money earned from selling at the dollar price. According to 50-50 policy, exporters get half of the money from sale at the rate of 2,100 kyats per dollar and another half at the rate of 2,920 kyats per dollar. They have offered at the world market price. But we don't make a profit. They might raise the price for many reasons. If they don't raise the price, we will sell at this price." he said.
The corn produced in Shan State is exported to China as a substitution crop instead of growing poppy yearly from September to December, said corn traders.
As substitution crops to replace poppy, tea, sugarcane, avocado and corn including other long-term fruit trees are grown in Shan State and they are being exported.
