Corn price drops due to lower demand from China

A drop in demand for Myanmar corn in China is making it difficult for corn growers to hit their profit targets this year, it has been learned from local corn growers.

Myanmar grown corn is mainly exported to China. Last year, the price of corn remained high and so domestic corn growers planted more acres in anticipation of healthy exports this year.

China, however, has since tightened controls on corn imports, resulting in corn growers having to face losses, said corn grower U Sai Myint Han from Kyaukme township.

Last year, corn growers individually earned an average of K2,000,000 from exporting. This year’s average earnings have dropped to around K600,000. Currently, corn sells for around K220 per viss (one viss is approximately 1.6 kilograms) and dried corn sells for around K350 per viss.

“The yield of corn was over 1,000 visses this year. Growing corn seeds costs K250,000 per acre, which does not include corn mill costs and labour charges.” said another corn grower named U Sai Thar Aung.

“We borrowed money at high interest from outside the community because the agriculture loan was insufficient to grow enough corn to reap what we expected to be a good return. But, it has not happened as we expected,” said U Kyaw Myint, a local corn grower from Yezagyo.

The total volume of exported corn between 10 and 16 September was 14,879 tonnes worth US$3.48 million. Myanmar growers export corn via Muse, Lwejai, Chin Shwe Haw and Kan Pait Tee trade camps.

Source: Global New Light of Myanmar

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