The P1.3 billion in foregone revenue from imported pork tariff could have gone to fighting the African swine fever and to uplifting small farmers and small entrepreneurs of the pork industry, Senator Francis “Kiko” Pangilinan said Wednesday.
The opposition senator said the amount represented the import value of at least 76 million kilos of pork under lower tariff on both in-quota and out-quota import.
Executive Order 134 issued May this year charged 10 percent for the first three months and 15 percent in the succeeding nine months of imports within the minimum access volume (MAV).
Those outside the MAV will be charged 20 and 25 percent, respectively, for the first three and succeeding nine months.
“Until now, the price of pork is still high,P380 per kilo for liempo,” said Pangilinan, who filed Senate Bill 2176 seeking to create a Swine Competitiveness Enhancement Fund using proceeds from pork import tariffs.
Pangilinan reiterated his earlier position that slashing tariff was not the best solution since it undermines the local pork industry and deprives the government of needed earnings.
“What’s tragic here is when you ask around, no Filipino consumer —whether those who shop in wet markets or supermarkets—will say that they felt the easing of pork prices, he said.
“We warned from the start that such policy is never a win-win solution but a losing proposition to the government, the local industry, and the consumers,” Pangilinan said.
Officials said the lower tariff aims to arrest the spiraling pork prices due to the lack of supply as an effect of the African swine fever that decimated a big portion of the local swine industry.
But Pangilinan said consumers continue to complain of high pork prices, especially in wet markets.
With lower revenues, Pangilinan said, the government will have less money to augment programs for the local hog raisers who badly need support to rise from the onslaught of ASF and to be competitive against imported pork.
The farmer-senator said the Senate will continue to keep watch on developments and review the policy when needed to make it more responsive to the local industry and consumers.
Malacañang earlier heeded Pangilinan’s call to declare a state of calamity to allow government to augment the funds of the Department of Agriculture for calamity relief and rehabilitation, as well as provide indemnity funds for hog farmers and additional funding for biosafety measures.
He also proposed that affected hog raisers be given cash-for-work opportunities to help them get back on their feet.
The Bureau of Customs (BOC) has reported a spike in pork imports to 76 million kilograms (kg) from April to early June, following the issuance by President Duterte of a series of executive orders (EOs) cutting tariffs on incoming swine meat shipments and increasing the allowable import volumes for a temporary period to help stabilize the domestic supply and prices of pork for the benefit of Filipino consumers.
In a report to Finance Secretary Carlos Dominguez III, the BOC said
pork imports between April 9 and June 11 for both in-quota and
out-quota shipments accounted for 69 percent of the total 110 million
kg of swine meat brought into the country from January 1 to June 11.