Food firms eye direct input imports

Food exporters are batting for more direct importation of their raw material requirements such as flour and packaging materials to be placed under a customs bonded warehouse by the Philippine International Trading Corp. (PITC).

Jesus M. Tanchanco Jr., chairman of the Food Entrepreneurs & Exporters of the Philippines Inc. (FEOP), told reporters at the "Processed Food Industry Forum" the need to import flour and other packaging materials particularly glass bottles because of the high local prices of these items.

Tanchanco said they have the option to import flour and packaging materials directly or through the PITC, which also operates a bonded warehouse.

He, however, said they are also working with the Bureau of Customs in an effort to accredit additional bonded warehouses that they can tap for the imports of their members.

FEOP is eyeing India as source for flour and glass bottles. "Possibly we may import flour for our members but we will see how much low the price of the local flour can go," he said. Since last year, FEOP members are already availing of the cheaper-priced D sugar or locally sourced sugar.
The D sugar is actually intended for exports hence it is called world class sugar but through PITC, the FEOP were allowed a certain percentage from this sugar as long as the processed food that they produced are exported.

The D sugar is P200 to P300 per bag cheaper than the sugar sold in the local market. The demand of the FEOP members is averaging 10 tons a month.

"Half of our members are taking advantage of that like Monde Nissin and Rebisco Biscuits," Tanchanco said. According to Tanchanco, the two-day forum seeks to provide information and insights to their members on diverse topics on the state of the industry, food regulation and safety, new developments in export marketing and promotion of food, quality control and compliances, DTI programs for local marketing, import regulations on processed food products, environmental issues affecting the food industry, raw material sourcing and funding sources and alternatives.