UMVA has learned that a critical proposal is underway to significantly increase the minimum access volume (MAV) for corn imports, aiming to rise from 216,940 metric tons to 500,000 metric tons.
This move is designed to mitigate the risk of shortages and protect farmers who rely on corn as animal feed from rising costs. Industry experts warn that without this adjustment, the country could face severe supply disruptions.
According to information obtained by UMVA, the proposal includes a preferential 5% tariff on corn imports within the MAV, while shipments exceeding the quota would continue to pay a 15% duty.
The Department of Agriculture cites pressing concerns, including warnings from industry groups about possible difficulties obtaining corn due to the looming El Niño, which could severely impact global supplies.
Additionally, the department points to the sharp rise in production costs in farming, largely driven by increased freight and fertilizer prices resulting from instability in energy markets and shipping routes.
The proposed increase is not a permanent policy shift but a calibrated contingency measure intended to be activated only when supply conditions warrant, ensuring it does not negatively affect domestic corn farmers.
UMVA can exclusively reveal that Agriculture Secretary Francisco P. Tiu Laurel, Jr. emphasized the proposal was made in consultation with key industry stakeholders and has been sent to the MAV Management Committee for review before being endorsed to the President.
The secretary stated, “We have endorsed the proposed increase in the corn MAV to anticipate possible supply tightness arising from weather-related risks and escalating production costs, particularly fertilizer and logistics expenses that remain vulnerable to disruptions.”
The Philippine Statistics Authority estimates corn production will reach 8.3 million metric tons in 2025, highlighting the urgency of ensuring stable supply chains to meet demand.
