Thursday, June 11, 2009
The construction of postharvest facilities and development of 10,000 hectares of land for corn in Mallig, Isabela would have to be put on hold for the next few months due to a number of issues related to the importation of farm equipment and export volume that the Korean investors want resolved.
Philippine Maize Federation Inc. (Philmaize) president Roger Navarro said the concerns of the Korea Overseas Grain investment and Development Co. Ltd. (Kogid) are payments for expanded value-added tax (E-VAT) on imported farm equipment and the volume of corn that Kogid would be able to ship to Seoul.
“[The Koreans] also want to be assured that there will be a steady supply of corn from farmers in the area that will be developed and where the postharvest facilities will be situated,” said Navarro in a telephone interview.
The Philmaize chief noted that the Koreans want to know whether imported farm equipment for the project will be exempted from the 12-percent E-VAT. The Koreans also want to find out how much corn they will be allowed to ship to Korea.
Navarro disclosed that a memorandum of understanding (MOU) for Kogid’s $12-million investment in the corn sector was supposed to have been signed when President Arroyo recently went to South Korea for an official visit.
“The signing of an MOU for that project was supposed to be in the agenda. Prior to the official visit of the President, we received an e-mail from [Kogid] saying that the MOU signing has to be put on hold pending further review,” said Navarro.
He said representatives from Kogid will arrive in the Philippines in September to thresh out the issues concerning the project.
Philmaize and the Philippine Agricultural Development and Commercial Corp. would be Kogid’s partners in the project.
Earlier, Navarro said the project is a private-sector initiative and is seen as a way of jumpstarting the development of the corn sector.
By Business Mirror
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