Flour millers ask DTI to restore 3% duty on imported wheat

MANILA, Philippines - Local flour millers are asking the Department of Trade and Industry (DTI) to restore the three percent duty or milling wheat by not extending the executive order that removed the duty or imported wheat.

“The government should restore the three percent duty on milling wheat instead of losing this amount needlessly as what had happened in the last 12 months,” Philippine Association of Flour Millers executive director Ric M. Pinca said.

Based on 2009 import figures, the three percent duty on milling wheat for one year translates to about P1 billion in revenues for the government. “Collecting this amount can help reduce the budget deficit and allow the government some leeway in implementing projects that directly benefit the citizenry,” Pinca said.

Pinca said that when the government removed the duty on milling wheat imports, the objective was to lower the price of bread to benefit the consumers. “Sadly, however, this objective was not realized as bread prices remained high despite much lower flour prices,” he said.

DTI records show that while flour prices dropped by 28 percent from P960-P980 per bag in May 2008 to only P700 - P710  per 25 kg bag ex mill (depending the mill and flour quality) bread prices did not go down. Loaf bread in supermarkets still costs as much as P55.50 per 600 gram loaf , even higher than its P55 per loaf price in May 2008.

“So why should the government continue foregoing revenues when doing so does not benefit the public,” Pinca asked.