Agri dept to cancel firms’ licenses to import pork
THE Department of Agriculture (DA) will revoke the licenses of private companies to import pork after it was reported that only 59 percent of the total minimum access volume (MAV) allocation for this year was used.
According to Agriculture Secretary Emmanuel F. Piñol, his department will issue on Monday an administrative order canceling the licenses of firms that did not use their MAV, allegedly because of hoarding.
“We are starting to believe that the reason they are not using it is because they want to hold on to their MAV allocation and use this during the peak season, where they would make more money…” Piñol said after meeting with fish and meat stakeholders in Quezon City on Friday.
“The MAV allocation is being given to the applicants so that they would be able to contribute to the stabilization of the supply and the price in the market,” he added.
The country has unused MAV allocations of 54 million MT for the rest of the year, according to the Agriculture chief.
“Because of this, I will enforce the rules governing the granting of MAV,” Piñol said.
“If the company did not use any amount, then we will cancel its MAV allocation,” he added.
Under MAV rules, a company must use at least 8 percent of its allocation.
The department will identify the noncompliant companies and “award the MAV to other companies that are willing to import,” Piñol said.
In 2017, 251 private companies received licenses to import pork, poultry and corn under the MAV of the World
Trade Organization (WTO). Of the number, 114 were allowed to import 54,210 MT of frozen pork.
Pork imported within the MAV have a 30-percent tariff; outside it, 40 percent.
Earlier this week, the Agriculture department announced it planned to import up to 10,000 MT of pork to avoid increases in the commodity’s price ahead of the holiday season.
Piñol said he was pushing to import this month, worried that the “ber” months—September, October, November, and December—may see supplies contract and consequently higher prices.
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