May 8, 2009

The Philippine government has allowed the private sector import as much as 210,000 tonnes of yellow and white corn at lower duties, according to the National Food Authority (NFA).

 

The decision might mean lower tariffs for inward corn shipments but industry players said sufficient local supply rids the need for imports.

 

The grains agency said the quantity of private sector corn importation is 210,000 tonnes broken down as 50,000 tonnes of yellow corn for farmers and producers, 145,000 tonnes of yellow corn for end users and processors and 15,000 tonnes of white corn for corn millers and processors.

 

NFA said corn importers would be charged a 35 percent tariff, or PHP4 per kilogramme, provided that landed cost of the corn import is not lower than PHP13 per kilogramme at the time of arrival.

 

Corn imports under the minimum access volume (MAV) of 216,940 tonnes are slapped with a 35 percent duty while imports outside the MAV are under the 50 percent tariff rate.

 

Ricardo M. Pinca, the immediate former vice-president of the Philippine Association of Feed Millers, Inc., however said feed millers are unlikely to import corn at the moment because of cheap prices of local corn.

 

Pinca said local corn prices are very competitive with the imported corn that is now being offered to the private sector.

 

Yellow corn, one of the main ingredients in animal feeds, makes up nearly two-thirds of the country's total corn production, while the rest is white corn, which is used as substitute to rice.

 

Pinca explained that landed prices of corn from countries Thailand and India amount to PHP12.80 per kilogramme, slightly lower than the local price of PHP13 per kilogramme.

 

Last month, corn-producing provinces like Isabela, Quirino, Pangasinan, and Ilocos Sur, harvested corn which assured the poultry and livestock industries enough supply of the feed ingredient.

 

Roger V. Navarro, president of industry group Philippine Maize Federation Inc. (PhilMaize), meanwhile, said calls for lower-tariff corn imports were during the advent of the corn shortage early this year, there will be no takers of that import scheme because it is expensive to import.

 

During the supply shortage in January, corn prices went up to PHP20 per kilogramme from PHP12 per kilogramme in December.

                                 

US$1 = PHP47.418 (May 8)