Yap sets conditions for okay of feed millers’ bid

A temporary reduction in tariff duties on soybean, soybean meal, dried distillers grains soluble (DDGS) and tapioca residue pellet would have to be revenue neutral and must be approved by both the Department of Finance and the Department of Agriculture, Agriculture Secretary Arthur C. Yap said yesterday.

In an interview with The STAR, Yap said that he has not formally received the letter of the Philippine Association of Feed Millers, Inc. (PAFMI) asking the DA to reduce to zero for one year the import tariff on soybean, soybean meal, (DDGS) and tapioca residue pellet to help lower the cost of animal feeds.

“Off hand, Yap said he doesn’t see any reason why we cannot allow a temporary reduction in the tariff of soybean, soybean meal, DDGS and tapioca residue pellet. It is not like we have a local soybean industry to protect.”

He said the PAFMI request will be carefully studied by the DA and the DOF to make sure that it will be revenue neutral.

In a letter to Yap, PAFMI president Norman C. Ramos said: “With the current global trend of increasing raw material prices and its negative impact to our production cost, we believe that the reduction in tariff rate will provide relief to feed millers, livestock and poultry producers, other industry stakeholders, and ultimately the consumers.”

While exempt from value added tax, soybean, soybean meal, DDGS and tapioca residue pellet are subject to a three-percent tariff.