Increased volume of corn imports at reduced tariff will kill the industry, affecting over 62.5 million Filipinos that depend on the sector, according to the Philippine Maize Federation Inc. (PhilMaize).
In a letter to the Tariff Commission dated March 16, PhilMaize said the local corn industry is “at its worst today” and its plight would further deteriorate with the proposed reduction in the corn tariff to five percent for in-quota imports under the minimum access volume (MAV) scheme from 35 percent and to 15 percent for out-quota imports.
“The petition to increase MAV to 4 million metric tons (MT) which represents 73.53 percent of our yearly production is far greater than the yearly average MAV of 380,000 MT. This expressly kills the local corn industry. This volume will effectively discourage farmer’s intention to plant, disrupt farmer’s incomes and deprive our farmers of their fundamental rights to livelihood and ultimately abandon corn farming,” said Roger Navarro, PhilMaize president, in a statement.
Navarro lamented government’s corn program funding support of P1.4 billion is only 1.3 percent of the grain’s gross value added share contribution of 5.8 percent to the economy, valued at P102.5 billion.
PhilMaize added lower corn tariffs would flood the country with cheap imported corn, which would displace farmers and laborers in related industries such as feed milling and livestock.
“The labor multiplier effect of corn farming at 25 farm laborers per hectare per planting at 2.5 million total corn hectare translates to 62.5 million Filipinos involved in corn farming is far greater than the feed milling and livestock sector combined. Killing the corn sector without corresponding equivalent to make the sector competitive would not only be ridiculously unfair but unjust,” Navarro said.
PhilMaize said P1 per kilogram (kg) price reduction on corn would translate to a P5.4 billion loss of farmers revenue.
Navarro said average price of local corn is P21 per kg delivered to plant against imported corn from the US and Brazil which is at P24.50 per kg.
The Philippine Association of Feed Millers Inc. (PAFMI), however, supports government’s proposed adjustments on corn tariff, saying this would help keep prices of food affordable.
PAFMI is calling on the government to also consider temporarily reducing tariffs on all corn imports to a uniform 5 percent tariff or the same rate imposed on imports from Asean to enable the country with more sources to help bring down the cost of producing meats and eventually, their market prices.
