November 2, 2009

The Philippine president Gloria Arroyo has authorised the National Food Authority (NFA), Philippine International Trading Corp. (PTIC) and Food Terminal Inc. (FTI) to augment the supply of chicken and pork in the market in response to the damage caused to the agricultural sector by recent typhoons.

The president issued the order last October 15 authorising the three agencies to intervene in the trading of food items, apart from staple cereals.

The current tight economic situation, aggravated by the destructive effects of typhoons that hit the country, has significantly lessened the underprivileged sector's access to basic food.

Agriculture Secretary Arthur Yap was tasked under the executive order to determine the reasonable volume of pork or chicken that would be imported to augment the supply in the country.

The NFA, PTIC and FTI, through their respective boards or councils, were authorised to use their corporate funds, manpower and other facilities, government guaranteed credit lines and supplemental government support as they may deem necessary.

All of the disbursements and expenses incurred for this purpose would be treated as a special projects account.

The importations made pursuant to the executive order would be eligible for application of the tax expenditure subsidy scheme.

The order stated that outstanding volumes not allocated under the Minimum Access Volume (MAV) pertaining to pork and/or chicken shall be distributed to the private sector under guidelines and procedures promulgated under the existing rules governing the implementation of the country's minimum access commitments.

The special safeguard duties on chicken and meat may also be lifted to encourage private sector importation under the guidelines and procedures to be released by the secretaries of agriculture, finance, and customs.

The damage caused by typhoons was pegged at PHP23.5 billion by the National Economic and Development Authority.