Villafuerte

LRay, solons want Congress to help PBBM revive salt industry

April 20, 2023 Ryan Ponce Pacpaco 294 views

A GROUP of legislators led by National Unity Party (NUP) president and Camarines Sur Representative LRay Villafuerte wants the Congress to help President Ferdinand “Bongbong” Marcos Jr. (PBBM), rejuvenate the now moribund salt industry in the Philippines, which, despite its expansive coastlines, is now saddled with importing yearly about 550,000 metric tons (MT) or 93% of the national requirement for this essential food seasoning.

In House Bill (HB) 7357, Villafuerte and three more representatives have proposed the creation of an inter-agency Philippine Salt Industry Development Council (PSIDC) to craft a five-year masterplan to expand areas devoted to salt-making, boost domestic salt output, promote investments in this sector and market Philippine products made from this essential nutrient, among others.

“HB 7357 seeks to make the Philippine salt industry competitive in the domestic and international markets,” said Villafuerte, who authored this bill with CamSur Reps. Miguel Luis Villafuerte and Tsuyoshi Anthony Horibata, and Bicol Saro Rep. Brian Yamsuan.

“It addresses the revitalization of the local industry by providing the right government support services for its protection and direction, specifically those that involve production and development,” Villafuerte said.

Villafuerte traced the local salt-making industry back to the 18th century, saying there was a time when Las Piñas and Malabon were the “top salt producers” before Pangasinan eventually became the country’s leading area for salt production.

“Considering the expansive coastlines of the Philippines, it has become a surprise why our archipelago was reported in 2021 to be producing only 7% of the national salt requirement and importing the other 93%, equivalent to around 550,000 MT,” he said.

As proposed by the bill, the PSIDC shall craft a Philippine Salt Industry Development Roadmap (Roadmap) comprising programs and projects for the development and management, processing, utilization, business development, and commercialization of Philippine salt.

The PSDC shall provide the overall policy and program directions and coordinate the activities of the various agencies and instrumentalities to ensure the implementation, accomplishment, periodic review, and enhancement of the Roadmap, according to the bill.

The would-be PSIDC is tasked under HB 7357 to focus the Roadmap on the following objectives:

· Expand salt-producing areas;

· Ensure sustainable production and harvesting in these areas;

· Promote investments in salt industry development programs;

· Advance market access for Philippine salt products locally and internationally;

· Extend technical and financial assistance for the development, processing, commercialization and marketing of Philippine salt products;

· Require the use of locally-produced salt in the fertilization of coconut farms by the Philippine Coconut Authority (PCA);

· Extend technical and financial assistance in the local design and fabrication of high-capacity processing equipment for this industry;

· Develop categories of salt-farming areas into places for artisan salt production, gourmet salt production, iodized salt production and salt ecotourism sites; and

· Provide continuous training and capacity-building in salt industry development.

Villafuerte and his fellow HB 7357 authors traced the salt industry’s continuous decline to four factors, namely:

· Ratification of the Philippines of the General Agreement on Tariffs and Trade (GATT) in 1994, which was seen as the reason for the influx of cheap salt imports;

· Enactment of Republic Act (RA) 8172 or the Act for Salt Iodization Nationwide (ASIN) Law in 1995, which required the addition of iodine to salt to address the country’s micronutrient malnutrition;

“The capital requirement for the machinery and technology for salt iodization was a heavy burden for local salt makers, leading many of them to drop one by one and shift to other livelihood sources,” said the authors in their bill;

· Rapid urbanization, which led to the conversion of more and more salt-producing places into residential and industrial areas; and

· Erratic weather patterns caused by climate change, which have been adversely affecting salt producers who are very dependent on weather conditions.

An initial amount of P100 million, to be sourced from the contingency fund of the Office of the President (OP), shall be used to fund the first year of the proposed law.

Additionally, an amount of P100 million shall be sourced from the revenues of the Philippine Amusement and Gaming Corp. (PAGCOR) for the effective implementation of this Act and also for its first year of implementation.

After that, the bill states that the amount necessary for the effective implementation of this Act shall be included in the annual General Appropriations Act (GAA).

Local government units (LGIs) are directed by the bill to work with the DA, BFAR, DTI, DOST-Forest Products Research and Development Institute (FPRDI), and National Fisheries Research and Development Institute (NFRDI) to identify appropriate areas for local salt production in their respective localities.

HB 7357 provides for the establishment of provincial, city, and municipal Salt Industry Development Councils (SIDCs) that shall regularly conduct a survey of existing salt farms and salt enterprises in their respective areas of jurisdiction.

The PSIDC shall have the Secretary of the Department of Agriculture (DA), as chairperson; Secretary of the Department of Trade and Industry (DTI), as co-chairperson; and Bureau of Fisheries and Aquatic Resources (BFAR) Director as vice chairperson.

The other PSIDC members are the:

· Secretary of the Department of Science and Technology (DOST);

· Secretary of the Department of the Interior and Local Government (DILG);

· Secretary of the Department of Health (DOH);

· Secretary of the Department of Tourism (DOT);

· The CEO of the Land Bank of the Philippines (LandBank);

· One (1) representative each from the League of Provinces of the Philippines (LPP), League of Cities of the Philippines (LCP), and League of Municipalities of the Philippines (LMP);

· One (1) representative each from salt farmers, salt manufacturers, and salt processing associations; and

· One (1) representative from the private sector involved in a business belonging to the salt industry.

The bill directs the BFAR to be the Secretariat of the PSIDC and to organize the necessary technical working group (TWG) for the Council.

It mandates the Council to “provide the overall policy and program directions and coordinate the activities of the various agencies and instrumentalities to ensure the implementation, accomplishment, periodic review, and enhancement of the Roadmap.”

HB 7357 assigns the following powers and functions to the PSIDC:

· Formulate the Roadmap containing the short-, medium- and long-term development plan covering a period of five (5) years;

· Identify sources of financing and facilitate credit windows with government banks and the ACPC to expand the salt industry development;

· Increase production of local salt by increasing land area devoted to salt and improving farm productivity;

· Institutionalize capacity building for salt farmers through the Agricultural Training Institute (ATI);

· Strengthen Market Linkage and Promotion of Philippine salt;

· Implement continual research and development (R&D) such as postharvest technologies and the establishment of laboratory centers for iodization for food grade salt; and

· Establish an Agri-Insurance Program for Salt producers.

The bill has drawn up the following incentives for investors involved in salt production and development:

· The Board of Investments (BOI) shall classify salt farms as preferred areas of investment under its Investment Priorities Plan (IPP) subject to pertinent rules and regulations;

· Salt farm owners, and processors and other related businesses shall be exempt from the payment of import duties for imported machines and equipment subject to pertinent rules and regulations;

· Salt farm owners in public lands shall be exempt from the payment of forest charges that may be imposed by the national government and other fees or taxes imposed by LGUs;

· Salt farmers and processors shall be given priority in accessing credit assistance and guarantee schemes being granted by government financial institutions (GFIs); and

· Salt farm development and their equipment shall be covered by the Philippine Crop Insurance Corp. (PCIC).

During the year’s first meeting of the Legislative-Executive Development Advisory Council (LEDAC) last Feb 13, Executive Secretary Lucas Bersamin and other Cabinet officials drew up with congressional officials led by Speaker Martin Romualdez and Senate President Juan Miguel Zubiri a list of ten bills, including this salt industry development bill, for the 19th Congress’ priority passage before it adjourns sine die on June 2.

Villafuerte had co-authored several of these ten priority bills, including the LEDAC-listed measures creating the Medical Reserve Corps, the Philippine Center for Disease Prevention and Control, and Virology Institute of the Philippines; implementing the Mandatory Reserve Officers Training Corps (ROTC) and National Service Training Program (NSTP); and condoning the unpaid amortization and interests of the loans of Agrarian Reform Beneficiaries (ARBs).

A bicameral conference committee of the Senate and the House had ratified the bill condoning the loans of ARBs before the bicameral Congress went on a six-week break from March 25 to May 7.

AUTHOR PROFILE