MANILA, Philippines - The Philippine Association of Flour Millers, Inc. (PAFMIL) said the anti-dumping duty petition that it filed against Turkish flour imports is a just and fair effort to level the playing field in view of what the group described as Turkey’s dumping of its cheap flour in the Philippines.
According to PAFMIL, Turkey dumps its flour too in many member-countries of the Association of Southeast Asian Nations (ASEAN). It noted that Indonesia has imposed a 20-percent safeguard duty on Turkish flour on top of a previously existing five percent duty.
Dumping occurs when a country exports a commodity at prices lower than its domestic pricing.
PAFMIL pointed out that in 2010, while the cost of flour in Turkey was $600 per metric ton (MT), its export prices to ASEAN countries were: $284 to Indonesia, $276 to the Philippines, $317 to Thailand, $250 to Malaysia and $277 to Singapore.
In 2011, the domestic price in Turkey was $600/MT but its export prices were much lower: $388 to Indonesia, $388 to Philippines, $455 to Thailand, $385 to Malaysia and $424 to Singapore, PAMIL continued.
The group pointed out that while Turkey raises a ruckus against PAFMIL’s dumping duty petition, Turkey imposes a whopping102.6 percent import duty on flour, effectively cutting off any foreign sourced flour in its country. Yet, Turkey wants to dominate the flour industries of other countries by presenting itself as a cheap alternative source to local produce, it added.
According to PAFMIL, Turkey espouses foreign competition in other countries where it sells it cheap flour while preventing foreign competitors in Turkish soil.
Due to subsidies provided by the government, Turkish millers are able to export flour, a finished product, at prices even lower than the raw material costs in other countries, the group continued.
While it may be true that Turkish flour at present represents only 10 percent of flour usage in the Philippines, Turkish flour exports to the Philippines have been increasing through the years so much so that, coupled with its dumping scheme, there is real danger of Turkish flour eventually killing the local flour milling industry, PAFMIL said.