RP to import 350,000 MT corn to stabilize local supply, prices

The country will import 350,000 metric tons (MT) of corn in the next three to four months to stabilize supply and prices.

This was announced yesterday by Trade and Industry Secretary Cesar V. Purisima who said that the National Economic and Development Authority (NEDA) Board has approved the duty-free importation of 350,000 MT of corn.

An executive order, Purisima said, is being prepared for signing by the President.

Purisima explained the government needs to import corn to ensure stable prices and supply of feeds considering that feeds account for 50 percent to 60 percent of the cost of chicken.

Purisima cited the fact that typhoon Harurot caused lower production of corn, resulting in higher prices of feeds.

The higher cost of feeds, Purisima said, has forced integrators to cut down their poultry production which resulted in the shortage and higher prices of chicken in December last year.

The 350,000 MT of corn to be imported, Purisima said, would still be under the Minimum Access Volume (MAV) allocation given to integrators.

Normally, corn imports under the MAV scheme are subject to a 35-percent tariff. Outside of the MAV scheme, corn imports are subject to an even higher tariff of 65 percent.

This year’s MAV allocation to integrators is set at 212,119 MT of corn.