Local traders slam gov’t for granting perks to Thai firm

AGRICULTURE industry leaders are now up in arms against the government for awarding incentives to a Thai agribusiness giant that threatens the livelihood of a third of the local labor force.

The group of businessmen said it would bring the case to the Office of the Ombudsman and file the appropriate charges if officials of the Department of Trade and Industry’s Board of Investments failed to revoke the incentives granted to Charoen Pokphand Foods Corp. (CP) of Thailand.

“We intend to file graft charges at the Office of the Ombudsman. This is apart from our petition to cancel the perks given to the Thai company,” said Elias Jose M. Inchiong, president of the United Broiler Raisers Association (Ubra) during the 6th Multisectoral Agricultural Summit held at Club Filipino in San Juan yesterday.

At the summit, around 300 agriculture stakeholders adopted a resolution denouncing what they called the “government’s incoherent policy direction on agriculture.”

“The unlawful grant of incentives and tax breaks by the BOI to CP will kill the swine, livestock, aquaculture and other allied industries in the Philippines,” the resolution read.

Local agri-business firms cried foul when the government granted the perks. They claimed the competitiveness of the local market would be severely affected. When the BOI granted pioneer status to CP for its integrated poultry production project, the company could now enjoy tax holidays for 6 years.

“We are not yet sure how much we would be losing. Their products are cheaper compared to ours due to their advanced technology and the assistance of the Thai government,” Inchiong said.

If the government really wanted to help local producers, Inchiong added, it should subsidize the local agriculture industry apart.

“Give us exactly what the Thai government is giving its agribusiness companies,” he said.

For his part, Agriculture Secretary Proceso Alcala is now encouraging the agriculture to come up with a position paper on the issue and has promised to help defend local industry players.