February 20, 2007

 

Philippines considering up to 500,000 tonnes of cheaper corn imports

 

 

The Philippines' Department of Agriculture is seriously considering a proposal to import up to 500,000 metric tons of corn at zero tariff, Agriculture Secretary Arthur Yap said Monday.

 

"We are considering to approve an import volume of 200,000 to 500,000 tons," Yap told reporters, adding that he will make a final decision on the matter by Tuesday.

 

He said the corn imports will have to come in between June and August, which is off-season for the domestic corn harvest.

 

The department is considering to assign state-owned grains trading firm National Food Authority to buy the imports in behalf of the end-users, which include the poultry, livestock and feedmill industries, he said.

 

End-users earlier asked that they be allowed to bring in up to 700,000 tons of corn at zero duty. Import duty for corn is currently pegged at 35%.

 

End-users requested for duty-free corn imports last month after domestic corn prices rose to around PHP12.50 ($0.25) a kilogram from only around PHP10.80/kg a month earlier.

 

Corn production in 2006 reached 6.1 million tons, up 11% from the previous year.

 

Local output, however, still falls short of the requirement of the livestock and poultry sector.

 

Corn is a major component of livestock and poultry feed.