June 22, 2006

Philippines rejects zero tariff on corn imports

The department of agriculture has rejected a proposal of feed millers appealing for tariff-free importation of corn, said Agriculture Secretary Domingo Panganiban as the government needed the revenue.

The Philippines is expected to import corn to cover a 1.3-million-tonne shortfall arising from growing demand, said Ricardo Pinca, vice president of the Philippine Association of Feed Millers.

About a third of the 280,000 tonnes of corn to be imported this year have been delivered. The feed millers are asking that the remainder be imported tariff-free.

Philippines' US$2 billion-feed milling industry last year produced 8.6 million tonnes of feed, with corn making up half the industry's production.