The Department of Trade and Industry (DTI) said tariff reductions on rice, corn and pork should be extended until December while importation of sugar for industrial use must be allowed to temper the spike on prices of basic commodities.
But DTI Secretary Ramon Lopez at the Kapihan sa Manila Bay forum yesterday clarified government’s priority is still local production augmented only by importation when shortages arise.
“We should not panic, but we also have to be prepared,” said Lopez, describing these measures prepared by the economic development cluster (EDC) as interventions to “another pandemic.”
Lopez said for rice, the effectivity of Executive Order (EO) 135 which reduced the most favored nation (MFN) tariff rates for rice to 35 percent from 40 percent for in-quota imports and 50 percent for out-quota imports must be extended until yearend.
The EO, issued in May 2021, was intended to last for one year.
Lopez said extending its validity will give the country more diversified sources of rice imports which in turn will keep prices low.
Lopez said for corn, the EDC is batting for the extension of another order that lowered MFN tariff to 5 percent in-quota and 15 percent out- quota with a minimum access volume (MAV) of 4 million metric tons (MT) until December to clip the possible increase in the cost of animal feeds.
Lopez said for pork, EDC is pushing for the extension until December of an existing order reducing tariffs to 15 percent for in quota and 25 percent out quota with a MAV of 200,000 MT.
As for sugar, Lopez said warned the injunction on the importation of 200,000 MT of sugar must be resolved soon to avoid stoppage on the operations of local manufacturing products that heavily rely on sweeteners.
“It should be avoided, we should not have a shortage (of sugar) for industrial users especially those which use breads, cookies and beverages who use sugar as they might stop production if they cannot get supplies from local sugar,” Lopez explained.
Lopez said the price of wheat has gone up by 60 percent but does not see this immediately affecting flour and bread prices.
He said millers have about 30 days in inventory of wheat and 30 to 60 days of flour.
He added the price escalation that started with the drought in the country’s main sources of wheat, US and Canada last year was aggravated by the supply disruption due to the Ukraine and Russia conflict.
Russia supplies 20 percent of global wheat while Ukraine accounts for 10 percent.
Lopez said the government is pushing for the expansion of sourcing of wheat, including India. At the same time, government is promoting the use of non-wheat substitutes
Such as cassava, sweet potato, monggo and banana flour. With Irma Isip
