By Tracy Cabrera
DILIMAN, Quezon City — While most basic commodities have seen spiraling price hikes amid the ongoing oil crisis, the Foundation for Economic Freedom (FEF) is urging the Marcos Jr. administration to reform corn import tariffs to a uniform five percent. The goal: to reduce feed costs and, in turn, lower chicken and pork prices in the country.
In an appeal to the government, FEF president Calixto Chikiamco said, “The reform we are asking for is to liberalize corn imports, reduce the out-quota tariff to 5 percent, and establish a uniform value for in-quota and out-quota raw corn imports.”
Currently, a five percent tariff is applied to corn imports within the minimum access volume (MAV), or in-quota imports, while imports outside the MAV, or out-quota, face a 15 percent tariff.
“The input tariff for corn is five percent and the output tariff is 15 percent. The five percent input tariff applies to the MAV of 216,939 metric tons, but demand for corn is much higher—around 5 billion metric tons,” Chikiamco explained.
He added that under the current tariff setup, nearly all corn imports end up being taxed at the 15 percent out-quota rate.
Chikiamco emphasized that the proposed tariff reform would lower feed costs and, consequently, help reduce chicken and pork prices. “Feeds currently make up about 50 to 70 percent of production costs for both pork and chicken, and corn is a key ingredient, primarily serving as an energy source in compound feeds. Lowering corn tariffs could lead to a 2 percent drop in pork prices and a 1.7 percent reduction in chicken prices,” he said.
Furthermore, he argued that the reform would make protein sources such as chicken and pork more affordable for families, potentially reducing malnutrition and stunting. It could also allow corn farmers to engage in higher-value-added activities within the corn industry and the agri-business supply chain.
Chikiamco concluded by urging decisive action: “Now is the right time to act to mitigate the impact of recent price increases driven by the Iran-Israel-US conflict,” which has already raised transport costs.
ia/xf
