DA urged to probe 'dumping' of Turkish flour

A group of small flour millers has asked the Department of Agriculture (DA) to investigate the alleged dumping of Turkish flour into the country.

“We asked the DA to look into the matter and conduct a public hearing,” said Ric Pinca, head of the Philippine Association of Flour Millers (PAFMIL), on Monday. "Afterwards, it can coordinate with the Tariff Commission to put in place the necessary safeguards.”

PAFMIL alleged that the exportation of Turkish flour to the Philippines at “dumping” prices—or prices lower than domestic prices—violates World Trade Organization rules.

“When a country exports products at dumping prices, it is engaged in unfair trade. Thus, we are up against a group of flour exporters engaging in unfair trade,” said Pinca.

PAFMIL noted that in 2010, average export price of Turkish flour was $276 per metric ton while their domestic price was $600 per MT. The next year, export price was at an average of $388 per MT against Turkish domestic price of $600 per MT. Last year, it was $340 against their domestic price of $470 per MT.

The group said Turkish flour export to the Philippines grew by 16 percent in 2011 and by 71 percent in 2012. In contrast, the local flour industry grew by only one to two percent during the same period.

“If this trend continues, there will no longer be a flour milling industry in the Philippines in just a few years and should this happen, the entire country will be left at the mercy of Turkey for our flour supply,” Pinca warned.

One only needs to look at the trend to realize the danger to our food security the threat of unimpeded Turkish flour entry brings,” he added.

PAFMIL represents smaller flour mills in the country. Bigger mills belong to the Chamber of Philippine Flour Millers (Champflour). — KBK, GMA News