The Philippines has made a significant move to double the import volume of chipping potatoes to 60,000 tons under the Minimum Access Volume (MAV) scheme, aiming to bolster the local snack manufacturing sector with a reduced tariff. This adjustment is in response to the escalating demand for high-quality raw materials necessary for producing potato chips and french fries, as highlighted by the MAV Management Committee. The committee emphasized the importance of aligning import requirements with the competitive edge of local potato chip producers.
Key beneficiaries of this expanded MAV include prominent firms like Universal Robina Corp., Liwayway Marketing Corp., and Leslie Food Corp., which are allocated to import chipping potatoes at a mere three percent tariff, compared to the standard 40 percent for imports exceeding MAV limits. The move addresses the absence of locally produced chipping potatoes suitable for snack manufacturing, compelling producers to rely heavily on imports to fulfill their raw material needs.
In 2022, the collective importation by these firms under the MAV reached approximately 30,000 tons, showcasing the critical role of imported chipping potatoes in the local industry.