The Department of Trade and Industry (DTI) said on Friday it was fast-tracking plans and eyeing more investments in agriculture and food production in light of the shortage of sugar and white onions.
Trade Undersecretary Rafaelita Aldaba said that the Strategic Investment Priority Plan (SIPP) has identified agriculture and food security as one of the priority clusters under the government’s investment blueprint.
“With the incentives, we will be in a better position to attract investors to modernize their plantations so as to increase their production,” Aldaba told the Inquirer on the sidelines of the SGV Tax Symposium in Makati City when asked about how investments could address reported supply shortages.
“There are activities and projects that we were already able to evaluate,” she said without specifying details.
The SIPP is a three-tier fiscal incentive plan listing the criteria and the specific activities and location prioritized by the DTI’s Board of Investments.
Modern agriculture and food processing is in tier 1, with investments and projects falling in this category enjoying four to six years of income tax holidays, depending on its proximity to the National Capital Region.
Earlier in the week, several industry associations came forward to raise the issue of the lack of supply and high prices of sugar in the market.
These groups include Philippine Chamber of Commerce and Industry and Philippine Exporters Confederation Inc., which both warned that a prolonged lack of supply could drive up the prices of their products.
Pleading for action
Philippine Baking Industry Group and Philippine Federation of Bakers’ Association Inc. have also called on the government to take action and asked for a P4 increase in the price of Pinoy tasty and Pinoy pandesal bread varieties.
The country’s top makers of carbonated drinks—Coca Cola Beverages Inc., Pepsi Cola Products Philippines Inc. and ARC Refreshments Corp.—also said they were having problems sourcing refined sugar, a key ingredient in their products.
Philippine Association of Stores and Carinderia Owners Inc. also said their members, who are owners of small stores and eateries, have noticed dwindling supplies in the deliveries of sweetened beverages since last week.
Similarly, a group of local producers of white onion has come forward to say that they have run out of stock months ago.
Katipunan ng Samahang Magsisibuyas sa Nueva Ecija said its onions ran out last July but assured the public that there is an ample supply of red onion as an alternative until before the holiday season.