The government is mulling over to reduce the tariff on garlic imports to boost local supply and cut its retail price, according to a senior official of the Department of Agriculture (DA).
Agriculture Undersecretary for Operations Ariel T. Cayanan said private traders are having difficulties buying garlic from abroad because of limited supply.
“Maybe we could reduce the tariff on garlic so it would be more profitable for traders to bring it in,” Cayanan told reporters in an interview.
“Traders are saying they are losing money because the cost of garlic is high. Supply is limited because it is currently the lean season for garlic in China,” he added.
Cayanan, however, could not say by how much the tariff on garlic imports would be cut.
“We still have to consult the policy and planning office to determine if it’s possible to reduce tariffs on garlic imports. We’re also going to meet with concerned agencies to determine how we will address the situation,” he added.
Garlic exports to the Philippines are slapped a 3-percent tariff and subjected to 12-percent value-added tax, data from the Tariff Commission showed.
The Bureau of Plant Industry (BPI), an attached agency of the DA, approved 1,143 sanitary phytosanitary-import clearances covering the importation of 57,150 metric tons (MT) of garlic from January to May.
However, as of May 25, only 12,440.34 MT have been brought in by private garlic importers to the country, BPI data showed.
“Based on our study and data, India and China are the main sources of imported garlic for the Philippines. But it is currently the lean season for garlic in the two countries,” Cayanan said.
Of the 12,440.37 MT imported from January to May this year, 12,206.86 MT were bought from China, according to the BPI data. The remaining volume was purchased from India.
Cayanan said the price of garlic in the local market is expected to stabilize by July, when China’s garlic harvest is expected to peak.
He added that more than 90 percent of the country’s onion supply is being sourced abroad, with the remaining volume being provided by local production.
“Even if local production increases, it may not be sufficient given the 1.9 percent annual increase in our population,” he said.
The country’s garlic production in the first quarter of 2017 grew by 3.1 percent to 7,030 MT, from 6,820 MT recorded a year ago, according to data from the Philippine Statistics Authority (PSA).
Latest data from the PSA also showed that, as of third week of May, native garlic retailed at P250 per kilogram, while imported garlic was at P200 per kg. The prices were higher by P50 compared to the April level.