Philmaize rejects plan to slash tariffs on corn
THE Philippine Maize Federation Inc. (Philmaize) is opposing the government’s plan to amend the tariff structure for corn imports, saying this would spell the death of the local corn sector.
Philmaize also demanded the inclusion of corn farmers in the technical working group (TWG) created by the Department of Agriculture (DA) which will study the proposed measure.
Philmaize President Roger V. Navarro said his group “vehemently opposes” any proposal to introduce changes in the tariff structure for yellow corn imports as this is akin to “a death sentence.”
“In the last two years after [the rice trade liberalization law] took effect, corn production soared to the point that corn drives agriculture’s total growth and this made the DA proud,” Navarro told the Businessmirror via phone interview. “However, the high production did not translate to [higher] income for corn farmers.”
He also said his group was taken aback by creation of the TWG last week and the fact that corn farmers were excluded from it.
“We’ve been backstabbed. As early as now there should be a farmer-representative in that TWG, since we are the ones that will be affected and not the officials who are whitecollar workers.”
Agriculture Secretary William D. Dar issued Special Order 540 that created the TWG to amend the tariff structure for yellow corn. It is chaired by Agriculture Undersecretary Ariel T. Cayanan. Its members include consultants and representatives from various government agencies.
In his SO, Dar said it is “imperative to ensure the steady and cheaper” supply of corn to enable the livestock, poultry and fisheries industries to become competitive.
He noted that animal feeds constitute approximately 60 to 70 percent of farms’ total operating production costs.
“During the DA Management
Committee meeting held on 21 July 2021, it was noted that this goal can be achieved through twin efforts of increasing productivity while lowering tariffs of imported yellow corn from non-asean countries,” the SO read.
“These are essentially important measures given the yearly shortfall of yellow corn for animal feeds.
However, on the reduction of tariffs to proceed without creating serious adjustment problems to our corn farmers, the government needs productivity-enhancing measures and also safety net measures,” it added.
Dar instructed the TWG to review the recommendation of Dr. Karlo Adriano to reduce the tariff on yellow corn imports from non-asean countries.
The TWG must also “identify programs and projects that will dramatically improve the productivity of corn and prioritize the areas where the programs and projects are to be implemented,” according to the SO.
The TWG should “determine the budgetary requirement to successfully implement the programs and projects on increasing the productivity of corn.”
“[The TWG must] identify social protection measures which can be delivered immediately to the corn tillers to mitigate the adjustment problems to be experienced once the tariff reform is pursued,” the SO read.
The TWG must submit its report three months after the issuance of the SO or on October 29 and must prepare a presentation material to the Cabinet-level inter-agency Economic Development Cluster.