Corn Market Shaken! Govt Approves 1 Million Tons Import at 0% Tariff
June, 15 2025
Thailand's domestic corn market, valued at over THB 42 billion, is under pressure after a new resolution allows the duty-free import of 1 million tons of feed corn under the WTO framework. This move is part of a trade strategy aimed at negotiating tariff reductions with key trading partners.
Previously limited to government import agencies, this quota is now open to private importers—subject to case-by-case approval by a central committee. The measure follows a "3:1 ratio" policy, requiring importers to purchase three units of domestic corn for every one unit of imported corn.
To qualify, importers must present purchase records from August 1, 2025 onward, and the minimum purchase price for fresh corn (moisture content not exceeding 30%) must not fall below 7.05 baht/kg.
Farmer Concerns and GMO Issues
Agricultural groups have voiced strong opposition, especially regarding the potential import of genetically modified (GMO) corn, which could impact the domestic environment. If local corn prices drop below the set threshold, legal action may be taken to seek interim protection, citing past cases such as palm oil in southern Thailand.
Feed Mills Suspend Buying – Traders Suffer Losses
Traders report that many feed factories have temporarily stopped buying corn, citing machinery maintenance—though the validity of this claim is unconfirmed. The resulting supply bottleneck has forced some traders to sell at a loss or hold onto unsold inventory due to fluctuating factory prices, which are often set as late as 7:00 PM daily.
Trade Negotiation Strategy with U.S.
This import plan is also linked to broader negotiations to reduce a potential 36% retaliatory tariff imposed on Thai exports. While Thailand still faces a corn production shortfall of 4 million tons, some stakeholders argue that importation may undermine national self-reliance.
Global Corn Prices Continue to Decline
On the CBOT exchange (June 9, 2025), corn futures for July delivery fell 2.03%, closing at $4.3350/bushel, driven by favorable weather for planting. Wheat and soybean prices followed similar downward trends.