Farmers hail House resolution on feedwheat tariff

MANILA, Philippines - Corn farmers hailed yesterday the approval by the House of Representatives of a resolution asking President Arroyo not to extend Executive Order 765 which temporarily lowered tariffs for feedwheat.

Rep. Leonne Montemayor of ABA-AKO initiated the resolution.

Roderico Bioco, chairman emeritus of the Philippine Maize Federation (PhilMaize), said in a statement: “We are grateful for the honorable gentlemen of the House. They understand that we should not continue subsidizing foreign farmers and undermine our very own.“

Bioco said the Philippine government “lost around P1 billion of tariff revenues from duty-free feed wheat importation in the last five months since EO765 took effect.”

He said “this is ironic as the government could only provide P400 million per year for our corn program for the last four years due to a soaring budget deficit.”

Current PhilMaize president Roger Navarro said “planting intentions will be seriously affected if the EO is extended.”

Navarro pointed out that there is an artificial glut of corn, and prices dipped to below P11/kg in the corn belt regions, as 1.4 million metric tons of feed wheat and 400,000 MT of imported corn came in during the last five months.

The main corn crop, Navarro said, is coming this July-October with a projected production of three billion kilos.

Navarro warned that if feed wheat importation at lower tariff will continue to be allowed, “definitely some P6 billion of lost revenues will not go into the pockets of our mostly poor corn farmers.”

Malacañang has announced an increase to P13/kg the support price for corn and the NFA is set to buy 300,000 MT or about 10 percent of the incoming crop.

Montemayor said “government is undoing what it gives on one hand to our corn famers by the other hand if it chooses to extend EO765 on feed wheat.”

Rep. Rufus Rodriguez of Cagayan De Oro said a seven- percent tariff on feed wheat does not significantly increase the retail price of meat.

Rodriguez claims that  “our consumers can afford the additional cost. What is more important is the viability of our corn farmers who are critical to our food security program.”

Rodriguez added: “If we can encourage our local corn farmers to produce enough corn, we do not need to rely on foreign substitutes.”