Tuesday, March 06, 2007 Corn importation cut to 400T mt
BANGA, South Cotabato -- The country will no longer import 700,000 metric tons (mt) of corn but only 400,000 mt, an industry official said Thursday.
Rosalie Ellasus, president of the Philippine Maize Federation, Inc. (PhilMaize), said at the sidelines of the 1st Mindanao Corn Congress here that the initial 200,000 mt tons might be procured this June, probably from Argentina.
Ellasus said that target corn importation by the country this year was reduced after a series of meeting between the Department of Agriculture, Philippine Association of Broiler Intergrators (Pabi), Philippine Association of Feed Millers, Inc. (Pafmi), PhilMaize, and the National Food Authority (NFA).
"The reduction of import quota was to protect the interests of our corn farmers," she said.
Moves to reduce the importation of corn were spearheaded by the Philmaize, an association of corn producers, to contain losses to local farmers.
No private corporations or individual will import corn but only the NFA at P13.80 per kilo, Ellasus said.
Fifty centavos per kilo of the imported corn proceeds will be allocated for the corn development fund.
A source who requested anonymity said the other 200,000 mt will serve as "stand-by volume in case a need arises within the year."
She said the importation of 400,000 mt of corn might be tariff free as being proposed by Agriculture Secretary Arthur Yap.
Yap, who immediately flew to Davao City after his speaking engagement, has yet to submit his proposal to President Gloria Macapagal-Arroyo, the source said.
If the President will adopt such proposal, the government stands to lose revenues of about P1.6 billion based on international prices of P12 to P13 per kilo.
Earlier, the Pafmi reportedly pushed for corn importation after local corn producers reported that the country would be experiencing 200,000 to 300,000 mt corn shortfall this year.
The millers also added that they have been supplementing feed-processing needs by initially importing 60,000 mt of wheat from India, and an additional shipment of 25,000 mt of wheat from China set to arrive in early May, reports said.
More wheat imports, estimated at 50,000 mt will also be added to previous volumes.
Pafmi said that importation is necessary to ensure stable supply of corn for feed milling and to stabilize the price of corn in the local market, which could shoot up to more than P11 a kilo without sourcing abroad.
Philmaize meanwhile has earlier projected an eight percent corn shortage this year owing to the devastation by typhoon "Yoyong" last year.
