The government should liberalize the fisheries industry and allow the entry of more imported fish products to help the Philippines achieve food security, an industry group said.
The Fisheries and Aquaculture Board of the Philippines (FAB) on Wednesday said the long-term solution to the country’s fish supply woes is to “open up” the fisheries sector.
“We are hoping for a rice trade liberalization-like law for the fish industry as well. The long-term solution is to request a review of RA [Republic Act] 8850, a review for everything, in this case, importation as a solution to food security,” FAB Chairperson Chingling Tanco said during a virtual press briefing.
Tanco’s statement was supported by the findings of a study that the FAB commissioned regarding the status of the country’s fish supply.
The study, which was conducted by Karlo Adriano of the Ateneo de Manila University, indicated that one of the long-term solutions to the fish supply problem is the liberalization of the industry.
For Adriano, liberalization means the easing of the quantitative restriction (QR) imposed on the sector and addressing the limited number of importers that may bring fish into the country to sell.
“RA 8850 stressed that the country can achieve fish security in three ways: first, pure local production; second, a combination of local production plus imports; and third, through pure importation,” he said during the virtual briefing.
Adriano said only 22 importers are eligible to import fish for the domestic market under Fisheries Administrative Order (FAO) 259. The importers are all commercial fishers.
He noted that the number of fish importers eligible under FAO 259 pales in comparison to the number of accredited meat importers pegged at 500.
This, Adriano said, discourages competition in the fish industry and gives players more control over supply and prices. “They can really have some sort of monopoly power.”
He said one of the results of his study, which was also a recommendation of the National Economic and Development Authority (Neda), is to pattern the fish importation scheme after the meat import system.
“Basically, it will be done on a first-come, first-served basis and importers will just apply for sanitary and phytosanitary import clearance,” he said.
“In the paper, I actually recommended the removal of the duration to import fish during certain periods. Actually, our recommendation is to open up importation for fish and let the market decide, just like in the [rice industry].”
Adriano said the government does not have the flexibility to immediately address fish supply issues under existing import rules. FAO 259 allows the import of fish only during the closed fishing season.
He also said the limited number of fish importers is stifling market competition while the quantitative restrictions are curtailing supply, thus resulting in higher prices.
Based on official government data, Adriano said fish inflation slows down whenever the country imports more fish. For instance, fish inflation was at 12 percent in 2018, when the country imported 15,228 metric tons (MT) of fish. In contrast, fish inflation was only at 4.2 percent in November and December 2019, after the country bought 132,158 MT of imported fish.
Based on his study, Adriano said the country’s annual shortfall of round scad or galunggong is estimated at 436,560 MT. Due to this, Adriano’s study proposed the import of 200,000 MT of small pelagic fish from October to March. Adriano’s proposal was supported by the FAB and the Neda.
Last month, Agriculture Secretary William D. Dar greenlighted the purchase of 60,000 MT of imported small pelagic fishes, such as galunggong, to augment the country’s supply in anticipation of the closed fishing season.