BUSINESS TALK

By PCCI CHAIRMAN WILLIAM S. CO

Finally, a bill that seeks to develop and revive the Philippine salt industry has been approved by the House of Representatives Committee on Agriculture and Food. It essentially aims to boost salt production in the country and mandate stronger government and technical and financial support to salt farmers. House Bill 1976 or the Philippine Salt Industry Development Act, seeks to draw up a government strategy that will lead the country toward salt self-sufficiency and export-ready industry through government support and various interventions to the salt farmers and stakeholders. The Philippine salt industry is an important sector of the economy, providing jobs to many Filipinos, particularly in rural communities. But this industry has unfortunately long been neglected and right now, I believe, we are importing 93 percent of our salt requirement. The declining production and our reliance on imported salt raise concerns from the different stakeholders who fear that this might eventually lead to a salt crisis if not properly addressed. This bill clearly draws down the programs and parameters for the revival of the industry.  One important component of the bill is the drafting of Philippine Salt Industry Development Roadmap (PSIDR) and the creation of the inter-agency Philippine Salt Industry Development Council that will implement all programs related to the development and management of the Philippine salt industry. The Roadmap will lay short-, medium-, and long-term development plans needed to increase production and make the Philippines a net exporter of salt.  PSIDR seeks to expand the number of salt-producing areas and promote public and private investment in industry development programs, and categorize salt-producing areas into artisanal, gourmet, and iodized salt centers while developing salt ecotourism. The roadmap would also introduce a new salt development technology and promote public and private investments in salt development programs. Expressing support for the bill, the Philippine Chamber of Commerce and Industry (PCCI) jointly with the Philippine Exporters Confederation and the Export Development Council, observed that while the country has the fifth longest shoreline in the world at 36,000 kilometers, it continues to import around 93 percent of its salt requirement. The group cited the study made by the DA, the Department of Science and Technology, the Department of Health, and the National Nutrition Council that emphasized salt as an essential ingredient for household items, food processing, water treatment, feeds, and fertilizers for the coconut industry, among others.  Salt has over 14,000 uses and is an important raw material for the production of many high value products and chemicals, making it a key product for agro-industrial development and the development of the country’s chemical industry. Given these, attaining salt self-sufficiency will generate the following: 1\. Jobs: Reviving the industry has the potential to generate 100\,000 green jobs\, especially in the countryside and save foreign exchange from importing 550\,000 metric tons of salt every year\.  This figure constitutes around 93 percent of the salt requirement of the country\. 2\. Exports: World export of salt in 2021 exceeded $2\.59 billion\.  In Asia alone\, total salt trade is estimated at 20\,000\,000 MT valued at US$1\.2 billion\, mainly supplied by Australia and China\.  The Philippines is closer to its ASEAN neighbors compared to Australia\, giving it logistics advantage\.  Its export of salt in 2020 went down to US$67\,894 from $190\,029 in 2019\. 3\. Value\-added products: A huge local salt industry will pave the way for value added chlor\-alkali chemicals made from salt\.  These include hydrochloric acid\, caustic soda\, baking soda\, soda ash\, and many others\.  This market is about three times bigger in economic value than salt today\. It is estimated to be worth ₱9 billion worth of imported goods mostly from China\. 4\. Additional government revenues/resources: At the current DA\-BFAR rate of ₱1\,500 per hectare per year\, the government may expect a rental income of at least ₱28 million per year\. This is in addition to the corporate and personal income taxes that will be generated from the new investments and jobs\. It is our hope that our legislators will see and appreciate the importance of the bill and will prioritize its passage. *(Dr. William S. Co is chairman of the Philippine Chamber of Commerce and Industry (PCCI) and director of the Agriculture and Fishery committee.)*