LAWMAKERS want Congress to help President Ferdinand Marcos Jr. rejuvenate the now moribund salt industry in the Philippines by approving a bill creating an interagency Philippine Salt Industry Development Council (PSIDC).
In filing House Bill (HB) 7357, Camarines Sur Reps LRay Villafuerte, Miguel Luis Villafuerte and Tsuyoshi Anthony Horibata, and Bicol Saro Rep. Brian Yamsuan said that despite its expansive coastlines, the country is now saddled with importing yearly about 550,000 metric tons (MT) or 93 percent of the national requirement for this essential food seasoning.
The solons have proposed the creation of an interagency PSIDC to craft a five-year masterplan to expand areas devoted to salt-making, boost domestic salt output, promote investments in this sector and market Philippine products made from this essential nutrient, among others.
“HB 7357 seeks to make the Philippine salt industry competitive in the domestic and international markets,” said Rep. LRay Villafuerte.
“It addresses the revitalization of the local industry by providing the right government support services for its protection and direction, specifically those that involve production and development,” he added.
Villafuerte traced the local salt-making industry to the 18th century, saying there was a time when Las Piñas and Malabon were the top salt producers before Pangasinan eventually became the country’s leading area for salt production.
“Considering the expansive coastlines of the Philippines, it has become a surprise why our archipelago was reported in 2021 to be producing only 7 percent of the national salt requirement and importing the other 93 percent equivalent to around 550,000 MT,” he said.
As proposed by the bill, the PSIDC shall craft a Philippine Salt Industry Development Roadmap (Roadmap) comprising programs and projects for the development and management, processing, utilization, business development, and commercialization of Philippine salt.
The PSIDC shall provide the overall policy and program directions and coordinate the activities of the various agencies and instrumentalities to ensure the implementation, accomplishment, periodic review and enhancement of the Roadmap, according to the bill.
The authors traced the salt industry’s continuous decline to four factors, including the ratification of the Philippines of the General Agreement on Tariffs and Trade (GATT) in 1994, which was seen as the reason for the influx of cheap salt imports; and the enactment of Republic Act (RA) 8172 or the Act for Salt Iodization Nationwide (ASIN) Law in 1995, which required the addition of iodine to salt to address the country’s micronutrient malnutrition.
“The capital requirement for the machinery and technology for salt iodization was a heavy burden for local salt makers, leading many of them to drop one by one and shift to other livelihood sources,” said the authors in their bill.
The solons also traced the salt industry’s continuous decline to rapid urbanization, which led to the conversion of more and more salt-producing places into residential and industrial areas; and erratic weather patterns caused by climate change, which have been adversely affecting salt producers dependent on weather conditions.
An initial amount of P100 million, to be sourced from the contingency fund of the Office of the President (OP), shall be used to fund the first year of the proposed law.
Additionally, an amount of P100 million shall be sourced from the revenues of the Philippine Amusement and Gaming Corp. (Pagcor) for the effective implementation of this Act, also for its first year of implementation.
After that, the bill states that the amount necessary for the effective implementation of this Act shall be included in the annual General Appropriations Act (GAA).
Local government units (LGUs) are directed by the bill to work with the DA, BFAR, DTI, DOST- Forest Products Research and Development Institute (FPRDI) and National Fisheries Research and Development Institute (NFRDI) to identify appropriate areas for local salt production in their respective localities.
HB 7357 provides for the establishment of provincial, city and municipal Salt Industry Development Councils (SIDCs) that shall regularly conduct a survey of existing salt farms and salt enterprises in their respective areas of jurisdiction.
The bill directs the BFAR to be the Secretariat of the PSIDC, and to organize the necessary technical working group (TWG) for the Council.
It mandates the Council to “provide the overall policy and program directions and coordinate the activities of the various agencies and instrumentalities to ensure the implementation, accomplishment, periodic review and enhancement of the Road map.”
The bill has drawn up the following incentives for investors involved in salt production and development:
The Board of Investments (BOI) shall classify salt farms as preferred areas of investment under its Investment Priorities Plan (IPP) subject to pertinent rules and regulations; Salt farm owners, and processors and other related businesses shall be exempt from the payment of import duties for imported machines and equipment subject to pertinent rules and regulations;
Salt farm owners in public lands shall be exempt from the payment of forest charges that may be imposed by the national government and other fees or taxes imposed by LGUs;
Salt farmers and processors shall be given priority in accessing credit assistance and guarantee schemes being granted by government financial institutions (GFIs); and
Salt farm development and their equipment shall be covered by the Philippine Crop Insurance Corp. (PCIC).
During the year’s first meeting of the Legislative-Executive Development Advisory Council (LEDAC) last February 13, Executive Secretary Lucas Bersamin and other Cabinet officials drew up with congressional officials led by Speaker Martin Romualdez and Senate President Juan Miguel Zubiri a list of 10 bills, including this salt industry development bill, for the 19th Congress’ priority passage before it adjourns sine die on June 2.
Last year, Kabayan Rep. Ron Salo also filed his House Bill 1976 or the Philippine Salt Industry Development Act, which employs a whole-of-nation, whole-of-society, and whole-of-government approach as it seeks to revitalize the salt industry.
