February 16, 2007

Duty-free importation of corn in the Philippines sought

Philippine Agriculture Secretary Arthur Yap has confirmed he would recommend duty-free import of yellow corn this year to President Gloria Macapagal Arroyo.

According to local journal, Manila Bulletin, Yap said his recommendation was based on the consensus among stakeholders to import tariff-exempted corn.

Feedmillers, poultry and livestock farmers have discussed with agriculture officials on their plans to import up to 400,000 tonnes of yellow corn, with half of the volume arriving around June or July.

The parties have also agreed to endorse the approval of standby authority to local feed mills and poultry and livestock firms to import an additional 200,000 tonnes of corn without tariff for arrival in December.

Under the plan, state trading firm National Food Authority would buy the corn on behalf of local firms by charging 50 centavos (1 US cent) for every kilo of corn bought, the sources said.

Funds collected will be used for the development of the local corn industry

The sources said the agreed volume was lower than an original proposal from local corn importers to allow them to import duty-free 700,000 tonnes of corn for animal feed.

The Philippines has largely been buying wheat as a substitute for corn for animal feed in recent years as local harvests of corn are not enough to satisfy domestic demand.