NEDA proposes need to import certain products to curb possible price hikes
By Robina Asido
To support the agriculture sector as the Ukraine crisis may affect the Philippine economy, the National Economic and Development Authority (NEDA) proposed the need to import certain products to control possible price increases.
During the Talk to The People with President Rodrigo Duterte, NEDA Director General Karl Kendrick Chua stressed the need to import small pelagic fish as he reported "a big shortage of fish".
"We have a big shortage of fish so we propose the issuance of a CNI or a Certificate for the Necessity to Import small pelagic fish from the ocean like galunggong from the second quarter to the fourth quarter," he said.
"Our estimate is we need it to fill an additional 140,000 metric ton because we have a supply gap of 200,000 metric ton. The import allocation released is 60,000 so we need to increase this. The end result is adequate supply so that the people can have lower prices for fish and also to remove all other non-tariff barriers," he added.
Since the Philippines is still recovering from the African Swine Fever, Chua said the NEDA proposes to extend the lower tariff rate of 15 percent in quota and 25 percent out quota with a MAV or Minimum Access Volume of (200,000) metric ton until December 2022 to ensure a lower price of pork and adequate supply in the market.
"We have an EO until May but we deem it necessary to extend this to ensure lower prices for the people and adequate supply," Chua told Duterte during the cabinet meeting.
"We also propose to accelerate the release of imported pork from the cold storage. We have imported a lot of pork, but we have to release it for the people’s consumption, especially outside NCR," he said.
"We propose also to pass the livestock and dairy bill now pending in the Senate because this will really help hog raisers and increase our daily production. And finally, to remove all the non-tariff barriers that prevent the smooth or proper importation of pork," he added.
Chua said the NEDA proposed to speed up release of the Sanitary and Phytosanitary clearances from the National Meat Inspection Service cold storage warehouses as the country continues to experience shortage in chicken meat.
"We can increase inventory and supply because we haven't reached the pre-COVID-19 pandemic level. We still have a shortage of chicken and the people who eat chicken... feel the crunch in the higher price," he said.
Chua said subject to the availability of government funds, NEDA also proposes the implementation of the Plant, Plant, Plant program part 2 and provide targeted fertilizer vouchers to farmers, and to discuss with its bilateral partners the possible additional supply of fertilizers, which is needed for production in agriculture.
He said the Department of Agriculture has agreed to closely monitor rice inflation and the National Food Authority to closely monitor the buffer stock.
"We will also help the local government units increase their buffer stock so as to ensure we have adequate supply in each province. And the Land Bank of the Philippines (LBP) and the Development Bank of the Philippines will provide concessional loans or funding for working capital particularly in the procurement of post-harvest facilities and warehouses," he said.
"We will also accelerate the Rice Competitiveness Enhancement Fund implementation and other parts of the national rice program in the budget so that we increase local production," he added.
However, Chua said NEDA proposed the extension of the executive order for the importation of rice which will expire in June, should the local production not be enough.
"We propose to facilitate the continuous release of the Sanitary and Phytosanitary import clearances especially for the shipment that will arrive in the lean season of July because mid April and August is, October rather is the lean season. While waiting for the harvest, we may need more imports and we propose to expand supply and reduce prices by extending the 35 percent tariff rate until December 2022," he said.
Chua said as the corn is important as feed for poultry and livestock, NEDA also "propose to expand supply and reduce the price by lowering the most favored nation tariff rate to five percent in quota and 15 percent out quota and allow a minimum access volume where they can avail of the lower tariff rate of 4 million metric ton until the end of the year."
"This is temporary to ensure that we have adequate feed so that we can buy chicken and pork at a cheaper price. And we will import more feed wheat and produce more cassava because these are substitutes for feeds, for chicken and for pigs, for instance," he said.
Chua also noted the need to address a court temporary restraining order that prevents us from pursuing sugar importation.
"The Economic team has proposed that we allow direct importation by the industrial users, the food manufacturers, and beverage manufacturers on a 1:1 ratio," he said.
"They will buy 50 percent from the domestic to help our farmers but that is not enough. We have to import the extra that is needed so that we can help our food producers also," he added.
Since Ukraine is one of the largest importers of wheat which is needed for bread production, for pasta, spaghetti, NEDA proposes to expand the country's sources of wheat and Chua noted that India is offering to provide an additional supply of wheat for the Philippines.
"We have a project, the Pinoy Tasty Project, where we promote and buy local bread and we promote non-wheat flour substitutes such as Sagip-nutri flour that is made of cassava, sweet potato, monggo, and banana flour," he said.
"All of these are meant to ensure that we have adequate bread at affordable prices," he added. DMS
