A high-level delegation from the Department of Agriculture, led by Secretary Francisco P. Tiu Laurel, Jr., recently visited South Korea to strengthen agricultural cooperation and secure investments crucial for the Philippines’ agricultural modernization efforts.
During the visit, Sec. Tiu Laurel explained to the Korea Agricultural Machinery Industry Cooperative (KAMICO) some incentives that could finally convince them to pursue the establishment of the Korea Agriculture Machinery Complex (KAMIC) in the Philippines, which promises to revolutionize local agricultural practices.
He highlighted available incentives under the CREATE Law, including exemption from local taxes and business permits for a specified period, alongside duty exemption on imports of capital equipment, raw materials, and spare parts as outlined in the Strategic Investment Priority Plan of 2022.
Products imported under the KAMIC project will benefit from favorable tariff arrangements under CREATE Law which will further bolster the initiative’s economic viability.
In addition to KAMIC, a strategic collaboration between the Korea International Cooperation Agency (KOICA) and the Philippine Center for Postharvest Development and Mechanization (PhilMech) aims to establish an agriculture machinery institute in the Philippines.
This initiative aims to enhance local manufacturing capabilities to better suit the diverse geographic conditions of Philippine agricultural lands.
Sec. Tiu Laurel affirmed DA’s commitment to coordinate with national and local agencies to finalize the site for KAMIC, with potential locations being considered in Nueva Ecija or Quezon.
He also announced his participation in KAMICO’s upcoming roadshow in Iloilo, scheduled for July, where innovative agricultural machinery solutions will be showcased.
Discussions between DA and KAMICO also focused on plans for the development of solar-powered dryers with a capacity of up to 630,000 metric tons of palay annually per machine.
This development is critical as the National Food Authority faces significant gaps in drying capacity, particularly during the wet season, with upgrade plans falling short of national requirements. Current plans will only increase NFA’s drying capacity to 180,000 metric tons, still short of the required 495,000 metric tons.
The ongoing dialogues and initiatives underscore a pivotal moment in enhancing the country’s agricultural capabilities, highlighting the strategic partnerships and investments crucial for sustainable agricultural development.
