Retention of MFN tariffs on wheat, flour sought

Local flour millers have asked the Tariff Commission to retain the most favored nation (MFN) tariff rate on milling wheat and wheat flour for the 2024-2028 to ensure continued supply of flour in the country at stable prices.

Ric Pinca, executive director of the Philippine Association of Flour Millers (PAFMIL), told the Tariff Commission the need to retain the current MFN rates on both milling and wheat flour as the country imports 100 percent of its raw materials. The TC started Monday, March 20, a series of public hearing via videoconferencing on the Comprehensive Review of the MFN tariff schedule.

On wheat flour, PAFMIL has asked the Commission to retain the seven percent MFN rate on wheat flour as there is enough local milling capacity to supply market demand.

Some of the imported wheat flour that come into the country are sourced from Turkey.

On milling wheat, PAFMIL said in the same position paper submitted to the Commission to retain the zero MFN duty for this imported wheat as this is no local production of wheat and millers import 100 percent of their raw materials for milling.

PAFMIL members source its milling wheat from the US, which produces high protein wheat varieties. Other millers also import milling wheat from Australia.

Wheat is part of Chapter 11, which comprises starches, wheat, and different flour types such as rice flour, wheat flour, corn flour, cassava flour among others. Chapter 11 consists of 38 tariff lines with average MFN rate of 9.11 percent.