DOF okays zero tariff on 400,000-MT corn import

The Department of Finance (DOF) has approved the zero tariff importation of 400,000 metric tons of corn as requested by the Department of Agriculture (DA) to help local hog raisers lower the cost of their production.

This was confirmed on Friday by Finance Secretary Margarito Teves in Davao during an economic roadshow conducted by the Economic Team. The importation will be done in two tranches.

The first tranche consisting of 200,000 MT will be imported by June while the balance of 200,000 MT will be on standby and will probably be imported in August, depending on demand. Timing of the importation, Teves said, would be up to the DA.

Agriculture Secretary Arthur Yap had sought the DOF’s consent to the planned limited importation of corn to enable prices of basic commodities such as pork and poultry to go down.

Yap said he had to consult with his fellow economic managers, particularly Teves, to determine the volume of corn imports to be allowed and at what tariff rate because of its revenue implication.

Yap was confident though that the revenue impact would be minimal compared to the positive impact down the line on consumer prices.

Yap had consulted all corn stakeholders regarding the planned importation. He said the planned importation would be done only during the non-harvest months of June, July and August.

Hog and poultry growers have appealed to the Department of Agriculture to be allowed to import corn at zero tariff to help reduce their production cost. Previously, local corn growers were opposed to the request of hog and poultry raisers.