Government urged to raise fish import volume

MANILA, Philippines — Increasing the volume of fish imports and opening up the importation to more players are among the short term solutions to address rising fish prices, according to an economist.

In a virtual press briefing yesterday, economist and Ateneo de Manila University lecturer Karlo Adriano said the approved certificates of necessity to import (CNI) for fish should be amended to allow more imports in the fourth quarter.

Adriano recommended a CNI volume of 200,000 metric tons (MT) for small pelagic types of fish from October to March in line with the closed fishing season.

“More than 100,000 MT [should be allocated] during the fourth quarter given demand is higher during Christmas season,”Adriano said.

Agriculture Secretary William Dar earlier approved the issuance of a CNI of 60,000 MT of fish for the fourth quarter in a bid to augment local supply during the closed fishing season.

Adriano’s recommendation of 200,000 MT is also the same level earlier recommended by the National Economic and Development Authority (NEDA).

Aside from increasing the volume of imports, Adriano also stressed the need to allow more players to import fish, citing restrictions in Fisheries Administrative Order (FAO) 259 issued by the Bureau of Fisheries and Aquatic Resources (BFAR).

FAO 259 gives sole rights to commercial fishing operators and fish traders in Navotas to import during the closed fishing season from November to March.

As a result of the restrictions, Adriano said there were only 22 fish importers under FAO 259 as of 2020.

The economist based his recommendation on a study he conducted on how to address the high prices of fish, which was commissioned by the Fisheries and Aquatic Board (FAB).

In his study, Adriano presented data from the Philippine Statistics Authority (PSA) and BFAR , which show that fish inflation declined when higher volumes of fish were imported.

He cited that in 2018 fish inflation registered at 12 percent while fish imports amounted to 15,228 MT.

Fish inflation declined to 4.2 percent in 2019 as the country imported 132,158 MT of fish.

As fish imports only reached 25,420 MT in 2020, fish inflation inched up to 6.1 percent.

This declined to 4.5 percent in the first quarter of the year, when importation is allowed due to the closed fishing season, with the arrival of 11,640 MT of fish.

However, Adriano pointed out that fish inflation from April to August of this year reached 8.8 percent as importation is not allowed during the period.

He stressed that the high prices of fish in the country is mainly caused by the curtailed fish supply due to quantitative restrictions on imports as well as the limited number of imports, which stifles competition.

Apart from increasing the volume of CNIs, Adriano also recommended the reform of FAO 259 to allow more players to import fish to foster competition in the trade of fish in the domestic market.

FAB chair Chingling Tanco said the group has made recommendations to the DA based on Adriano’s study.

Meanwhile, Adriano shared results of a separate study he conducted, which recommended opening up importation for the entire year, not just during the closed fishing season.

“Our idea is to actually open importation for fish and let the market decide when to import. Just like in the Rice Tariffication Law,”Adriano said.

He emphasized that with importation only allowed during the closed fishing season, the government is unable to respond to supply issues during times of typhoons in the second or third quarter.

“The government cannot respond especially if there’s a typhoon especially in Q2 or Q3 and therefore your fish volume will diminish because of the typhoon and we cannot respond,”Adriano said.

While Adriano’s study commissioned by the FAB focuses on short term solutions, Tanco said the group is hoping for a review of Republic Act 8850 or the Fisheries Code in the long-term to address issues on importation.

“The long term plan is to request a review of RA 8550. Imports as a solution to fish security,” Tanco said.

Adriano identified tilapia and milkfish as aquaculture sub sectors that the country should focus on due to its comparative advantage.

Various fishing groups have expressed concern over the approved fish importation volume, saying this may flood the local market with fish supply, which will affect the livelihood of fisherfolk.