Corn farmers ask DA to defer low tariff on imports
Report P10 billion revenue loss from low corn prices of P8-10 per kilo
House Resolution 2289 has been filed by Cagayan de Oro Representative Rufus Rodriguez with the pleadings of the Philippine Maize Federation Inc. (Philmaize) and the United Broilers and Raisers Association (UBRA). The resolution was directed as a petition to the National Economic Development Authority and the Tariff Commission. “The abundance of production did not increase the income of farmers which shows the ‘incompetence of the DA in promoting and managing our own agricultural resources’,” according to the House Resolution. Corn tariff is now low at 5% if importation is within the Asean Trade in Goods Agreement (ATIGA). It is slapped with a 35% duty within Minimum Access Volume (MAV) importation and 50% outside MAV. DA just created a Technical Working Group to study lowering of corn import duties in order to bring down animal feeds and livestock and poultry prices. Philmaize has debunked the assumption that feed prices will go down given lower corn prices, consequently pulling down livestock and poultry prices. “Philmaize stated that these corn prices do not have direct and immediate correlation to the decrease of feed and meat price. In the last two years, corn prices plunged to P9-8 per kilo, but there was no reduction in the price of feed and meat.” Rather, it is the huge importation of feed wheat and corn that caused the fall in local corn price to its lowest level. This is based on a study of the Philippine Competition Commission, Philmaize cited.