A leading economist is calling for a flat 5 percent tariff on corn imports, saying the move could temper food inflation and expand access to affordable protein as global risks mount.
Speaking before the Management Association of the Philippines, Calixto Chikiamco—president of the Foundation for Economic Freedom—said the government should cut the out-quota tariff on corn from 15 percent to 5 percent, aligning it with the in-quota rate.
The proposal comes as oil price pressures, driven by tensions involving Iran, Israel, and the United States, threaten to push transport and food costs higher.
Corn is a critical feed input, accounting for 50–65 percent of poultry feed and up to 70 percent
of total production costs for pork and chicken, making it a key lever for food prices.
Chikiamco said the current system limits supply flexibility. While a 5 percent tariff applies to a minimum access volume of 216,939 metric tons, actual demand is करीब 5 million metric tons, with excess imports taxed at 15 percent.
A uniform tariff, he argued, would cut feed costs and translate into cheaper meat. Studies suggest pork prices could fall by 2 percent chicken by 1.7 percent, while boosting output and delivering an estimated P17.4 billion in welfare gains.
The benefits could extend beyond inflation. Lower meat prices would help address protein deficiency, a major factor behind child stunting, particularly among low-income households.
Chikiamco also said simplifying tariffs would curb inefficiencies and rent-seeking in the quota system, while nudging farmers toward higher-value agribusiness activities in livestock and feed production.
