Suspension of agri tariff pushed

CLARK FREEPORT, Pampanga – Fearing adverse effects of global warming and a worldwide economic slowdown, private agricultural sector producers and exporters are pressing the government to suspend tariff on all agricultural input imports amounting to some P5 billion to P8 billion yearly.

In a food summit workshop organized by the Department of Agriculture (DA) here yesterday, Roberto Amores, president of the Philippine Food Processors and Exporters Organization Inc. (Philfoodex) and trustee of the Export Development Council of the Department of Trade and Industry, said Agriculture Secretary Arthur Yap is expected to support the move.

He said that the proposed suspension of tariffs on farm input imports would be endorsed to President Arroyo by the Philippine Chamber of Commerce and Industry, the Philippine Exporters Confederation, and the Philfoodex.

Amores said that the duty-free importation proposal, which covers  all agricultural inputs such as fertilizers, chemicals, feeds and other inputs for agricultural enterprises, comes as a form of assistance to food producers facing the adverse effects of unpredictable weather due to global warming.

But Amores said that while the DA is expected to endorse the proposal, the Department of Finance (DOF) has already frowned on it.

DA Undersecretary Bernie Fondevilla admitted that the DOF has yet to find other sources of revenues to offset the loss of P5 billion to P8 billion from the duty-free policy on farm input importation.

Amores, however, said, “It’s not the job of the private sector to look for alternative sources of revenues. That’s the problem of the government, and I think there are other ways the government can recoup the losses from our proposal that would greatly help local agriculture.”

He expressed fears that the projected recession in the US could affect Philippine exports, as he noted that last year alone, some $80 million worth of processed mango products were exported to the US.

Amores said inconsistent local weather is also expected to adversely affect the local mango industry.

He noted that since 2006, the unusual weather pattern in Luzon, where 70 percent of the country’s mango plantations are located, has adversely affected production.

“This is the reason why from one million metric tons produced last year, we expect production to go down by 20 to 30 percent or 750,000 to 800,000 metric tons,” he said.

He added that suspending tariff on agricultural inputs would help bring down the prices of mangoes and other products not only for local consumption, but also for export.