AT THE RATE we have been allowing imports to flood our country – despite our precious limited dollar reserves– our agricultural trade deficit would widen and worsen even more. Name the product, we import it regardless of our local farm productions.
Since the agricultural products that we have the capacity to produce and earn from are not being protected by the agriculture department, we might as well merge the DA with the finance department, particularly put it under the Bureau of Customs so that there would be more eyes to watch over our food imports.
The Samahang Industriya ng Agrikultura (SINAG) said the agricultural trade deficit would widen further in the coming few months from its June level of $1.06 billion.
SINAG Executive Director Jayson H. Cainglet cited the data of the Philippine Statistics Authority that record imports of rice, pork, and chicken this year could lead to the expansion of the agricultural trade deficit.
Philippines economic data showed the continued push for lower tariffs and greater imports, and the growing dependence on imports have reduced the incentive for farmers to produce, reducing investment in agriculture, while exposing consumers to global price shocks and supply disruptions, Cainglet was quoted by Business World.
“While other countries are strengthening protections for their domestic agriculture and raising barriers against imports — including the latest additional tariff measures imposed by the US — it is difficult to understand why our economic managers continue to move in the opposite direction, Cainglet told Business World.
Cainglet urged the government to restore the confidence of domestic producers, increase productivity, and ensure that agricultural imports only serve to complement the country’s capacity to access food rather than replace it.
“The government must stop giving disproportionate weight to the interests of traders and importers while local producers are left to absorb the consequences of import liberalization,” Cainglet said.
“They deserve a government that stands behind them — not policies that permanently put them at a disadvantage,” he added.
The PSA data showed that total agricultural trade in June grew 8.5% to $2.47 billion, against the 13.5% growth a year earlier. Agricultural exports declined 3.6% year on year to $706.92 million, while agricultural imports rose 14.3% to $1.77 billion.
Vietnam was the top supplier of agricultural imports to the Philippines within the Association of Southeast Asian Nations (ASEAN), amounting to $221.72 million, while Spain was the top importer from the European Union (EU) with $22.65 million.
Malaysia was the top buyer of Philippine agricultural exports within ASEAN, amounting to $30.50 million, while the Netherlands was the top buyer in the EU with $130.90 million.
Cereals accounted for the largest share of agricultural imports to the Philippines worth $441.93 million, while animal, vegetable, or microbial fats and oils and their cleavage products; prepared edible fats; animal or vegetable waxes were the top agricultural export, amounting to $242.25 million.
The “Importation, by itself, is neither a long-term inflation strategy nor a sustainable food-security policy,” Cainglet was quoted by Bilyonaryo.
The group said Filipino farmers face high production, fuel and input costs, inadequate infrastructure and competition from subsidized foreign producers.
SINAG urged the government to raise farm productivity, improve infrastructure and producer support, and use imports to supplement rather than replace domestic supply.
“Every time we make imported food artificially more competitive through lower tariffs, we make it harder for Filipino farmers and agricultural producers to survive,” Cainglet said.