‘Salt law to spur jobs, investment generation, revive dying industry’
THE enactment into law of the Philippine Salt Industry Development Act is expected to generate new investments and new technologies to the country’s salt industry on top of reviving the “dying” industry, the Philippine Chamber of Commerce and Industry (PCCI) said Tuesday.
The PCCI, in a news statement, welcomed the enactment into law of Republic Act No. 11985 or the Philippine Salt Industry Development Act.
With this, the business group said, “The law is expected to not only attract more farmers and producers to return to salt farming and production but also generate new investments and new technologies to elevate the industry and become competitive.”
For her part, PCCI President Enunina V. Mango said she hopes that the new law will address the gaps in the implementation of the ASIN law or
An Act for Salt Iodization Nationwide and create opportunities for people, especially in rural areas.
The PCCI head emphasized that the Philippines is an archipelagic country with over 7,000 islands and yet, it imports more than 90 percent of its salt requirement.
“It’s a sad reality that we need to collectively address through the effective implementation of the law,” Mangio said.
Moving forward, she noted, “We should aim for our country to become salt self-sufficient and minimize dependence in imports.”
In 2022, PCCI, together with the Philippine Exporters Confederation, Inc. (Philexport) and Employers Confederation of the Philippines (ECOP), penned a letter to Congress expressing support for the passage of the Philippine Salt Industry Development Act.
“This made us wonder why after 27 years of implementation, we continue to suffer the consequences of iodine deficiency among certain segments of the population, aside from the serious adverse effects of the ASIN Law on local sea salt production and export,” the letter of the groups noted.
Citing the statement of the business groups, PCCI noted the salt industry has the potential to generate 100,000 green jobs, especially in the countryside and save foreign exchange from importing 550,000 metric tons of salt every year, which constitutes around 93 percent of the salt requirement of the country.
In terms of export, the Philippines can take part in the share of the world export of salt, which exceeded $2.59 billion in 2021, the PCCI noted.
Further, the business group said in Asia alone, the total salt trade is estimated at 20,000,000 metric tons (MT) valued at $1.2 billion, mainly supplied by Australia and China.
The PCCI also emphasized that the Philippines has a “logistics advantage” as it is closer to its Asean neighbors compared to Australia.
For his part, William S. Co, PCCI Agriculture and Fishery Committee director, said there is no reason the country cannot produce enough supply of sea salt as “we are surrounded by waters.”
Co also noted that the government should ensure the effective implementation of the law.
To help boost the competitiveness of the local salt industry, President Ferdinand R. Marcos Jr. signed RA 11985 or the Philippine Salt Development Act, which also slaps a 9-percent tariff on imported salt.
Prior to the new law, the tariff on imported salt commodities was only at 1 percent.
The new ad valorem rate will be applied on all imported salt, including table salt, denatured salt, pure sodium chloride, whether or not aqueous solution of containing added anti-caking or free-flowing agent, as well as seawater.