The Philippine Maize Federation Inc. (Philmaize) urged the Department of Agriculture (DA) to deny the request of the Philippine Association of Feedmillers Inc. and livestock and poultry growers, saying this will hurt local farmers who are still reeling from losses due to super typhoon Harurot.
The DA said earlier it planned to allow the importation of about 300,000 MT of corn by October to cover the corn lost in Northern Luzon after the typhoon destroyed 80,000 hectares of corn crops valued at P2 billion.
The government wants the imports to come in as part of emergency measures to avert a supply crisis and at the same time prevent speculations in the market, not only in the prices of corn but also pork and poultry products.
Philmaize president Roderico Bioco said a zero tariff is not acceptable, but they would not oppose the entry of up to 300,000 MT at 20-percent tariff.
Also, the tariff to be generated should be directly allocated to the rehabilitation of the affected corn areas in the Cagayan Valley.
The government is expected to collect more than P400 million in import tariffs.
Bioco said a 20-percent tariff is a substantial reduction from the current 35 percent pegged on corn covered by the minimum access value (MAV).
MAV is the minimum volume of commodities committed by member countries of the World Trade Organization that will be allowed into their respective countries.
"Philmaize is proposing a win-win solution for the government. The tariff reduction of 20 percent will enable the livestock and poultry sector to import corn at P8.75 to P9 per kilo delivered to their feedmills, the cost parity that the corn farmers in Mindanao demand," said Bioco.
Bioco added that Mindanao is having better-than-expected corn harvest and maybe able to cover some of the shortfall in supply.