TARIFF collections from imported commodities should be allocated to their domestic industry counterparts, the Philippine Chamber of Agriculture and Food Inc. (PCAFI) said on Sunday.
PCAFI, composed of 48 agricultural groups, explained the approach would be similar to those of the Rice Competitiveness Enhancement Fund (RCEF) and the Salt Industry Development and Competitiveness Enhancement Fund (Sidcef).
It noted the RCEF is a model in agricultural development since collected taxes are reinvested into the industry. Government officials, economic managers, and lawmakers would have a similar view, said the PCAFI.
It went on to propose extending the same mechanism to other commodities, such as cacao, coffee, sugar, tobacco and vegetables, which currently receive minimal funding compared to crops like rice.
The PCAFI pointed out that, since the Agricultural Competitiveness Enhancement Fund was terminated in December 2022, tariff collections from commodities imported under the minimum access volume (MAV) have been directed to the general fund, instead of being allotted to the agri sector.
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Other concerns
The PCAFI is also pushing for the immediate enactment of the Animal Industry Development and Competitiveness Act, which would create an estimated P20 billion funding allocation to develop the local livestock, poultry, dairy and corn industries.
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This would boost government efforts to revitalize the livestock sector, especially the hog industry, which has been impacted by the effects of the African swine fever, the PCAFI said, adding the proposed fund would likewise support traditionally private sector-driven poultry and dairy industries.
Another proposal from the PCAFI is the abolition of the MAV system for pork, chicken and corn, describing it as “outdated,” since annual imports for these commodities significantly exceed the MAV.
“The volume of importation is more than 15 times the MAV. Clearly, there is no need to further reassure our trading partners about the entry of their poultry products by having a MAV,” said PCAFI President Danilo Fausto.
PCAFI also asked for the establishment of a national virology center to improve the country’s capability to produce vaccines, particularly for the African swine fever and avian influenza or bird flu.
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It also called for the strict enforcement of Republic Act 7884 or the National Dairy Development Act of 1995, which mandates commercial milk processors and traders to source at least 5 percent of their milk supply locally.
The PCAFI also sought to amend Republic Act 1556 or the Livestock and Poultry Feeds Act to be “attuned with the current market situation and needs of the animal feed industry.”
The law, first enacted 69 years ago, needs to expand its coverage to include feeds for aquaculture, game animals, companion animals, pets, and all other animals consuming animal feeds, the PCFAI said, noting the need to update stipulations on formulations, since feed millers now use balanced amino acids instead of crude protein as a basis.
Fausto also asked Congress to consider providing direct support and assistance to farm laborers, explaining that they often get excluded from government initiatives and subsidy programs, which usually benefit only farmers.
