Business groups laud passage of Salt Industry Development Act

MANILA, Philippines — Business groups Philippine Exporters Confederation Inc. (Philexport) and Philippine Chamber of Commerce and Industry (PCCI) welcomed the approval of a law that aims to revive the salt industry which is seen to support economic growth and help create jobs.

In a statement, Philexport president Sergio Ortiz-Luis Jr. said the law signed by President Marcos last March 11, is expected to help the local salt industry bounce back and encourage small-scale sea salt producers forced out of business to resume production.

“It is also our hope that this law will make possible once again the robust exportation of salt from the Philippines,” he said.

Philippine salt exports shrunk significantly, declining to almost $67,894 in 2020 from $190,029 in 2019.

In 2021, world export of salt exceeded $2.59 billion, indicating a vast potential for Philippine exports.

The Philippine Salt Industry Development Act lifts the requirement under the ASIN Law or An Act for Salt Iodization Nationwide Law for all locally produced salt to be iodized.

While the ASIN Law had good intentions to eliminate iodine deficiency in the country through the mandatory iodization of salt, the law affected sea salt production and exportation and made the Philippines reliant on imports, bringing in about 550,000 metric tons of salt every year or 93 percent of its salt requirements.

In a separate statement, PCCI president Eunina Mangio said the group is hopeful the new law will address the gaps in the implementation of the ASIN Law and create opportunities, especially for those in rural areas.  

“We are an archipelagic country with over 7,000 islands yet we import more than 90 percent of our salt requirement. It’s a sad reality that we need to collectively address through the effective implementation of the law,” Mangio said.

PCCI expects the law to encourage more farmers and producers to return to salt farming and production, as well as generate new investments and new technologies for the industry to become competitive.

“We should aim for our country to become salt self-sufficient and minimize dependence on imports,” Mangio said.

In 2022, the PCCI, Philexport and Employers Confederation of the Philippines wrote to the Congress to express their support for the passage of the Philippine Salt Industry Development Act.

The groups believe the salt industry has the potential to generate 100,000 green jobs, especially in the countryside and allow the country to save foreign exchange from importing bulk of its salt requirements.

Under the Philippine Salt Industry Development Act, technology, research and adequate financial, production, marketing and other support services will be provided to salt farmers to revitalize the industry to increase production and achieve sufficiency.

A roadmap to promote the development of the salt industry will also be formulated to ensure the attainment of the objectives of the law and continued implementation of the ASIN Law.

In addition, a salt council will be created to ensure the unified and integrated implementation of the salt roadmap and accelerate the modernization and industrialization of the country’s salt industry.

Tariffs collected from imported salt will be used to invest in the local industry with the establishment of the Salt Industry Development and Competitiveness Enhancement Fund.