Byline: BERNIE CAHILES MAGKILAT

The Department of Trade and Industry is keen on pursuing two-pronged strategy of importation and tariff liberalization in light of the soaring prices of chicken, pork, cooking oil and flour in the wake of increases in oil prices, and impending hikes in transport

Trade and Industry Undersecretary Adrian Cristobal Jr., who is acting chair of the National Price Coordinating Council (NPCC), only these items registered increases all other basic commodities have remained stable.

Noting the policy differences in the past, Cristobal said they are closely working with the Department of Agriculture (DA) to finally implement such measures.

Based on the monitoring of the Bureau of Agricultural Statistics prices of chicken have gone up again to R92-R95 per kilo in the supermarkets from R85 a kilo in March and R110 in the wet markets from R100 a kilo.

Prices of pork also soared to R140 a kilo from last R110 a kilo a year ago.

Cristobal said the supply problem has caused prices of pork and chicken to soar.

To ease up tightness in the local supply, the DTI is renewing its earlier position to import these basic goods at lower tariffs and on a temporary basis as soon as possible.

The DA had previously turned down moves of the DTI to import these goods.

"We need to import chicken even on a temporary basis for as specific period. We have exhausted all efforts in the past to ease the tightness in supply, it is about time we have to pursue importation, he said.

Cooking oil prices also soared to R20 per lapad in May from R12 in the same month last year.

This was attributed to the soaring copra prices in the world market from R15.61 a kilo in January to R23.69 last May 1 and R25.65 in the latest price monitoring.

As a result, Cristobal said the DTI is supporting the proposal to reduce the 15 percent import duty on palm oil. The Coconut Oil and Refiners Association has petitioned for a duty free importation of palm oil as this would result in an R11.20 reduction in the price of cooking oil per kilo.

"If this will result in the lowering of oil prices then we will support the industry position, Cristobal said.

But Agricultural Secretary Luis P. Lorenzo Jr. has opposed a cut in palm oil import because this will adversely impact on the coconut farmers.

The Philippine Coconut Authority was amenable to the importation of a palm oil at lower duty for a limited period of one and a half months oil requirement. The countrys estimated monthly cooking oil requirement is placed at 25,000 metric tons.

In the case of flour, Alex Lim of the Chamber of Flour Millers said that prices have gone up to R600 per 25 kilogram bag from only R510 in January this year.

Lim said they put off passing the 20 percent increase in prices to consumers but freight cost has gone up 300 percent plus, which was further compounded by the foreign exchange cost.