Gov’t to establish agri-ecozones soon

Industrial economic zones, IT parks and soon agricultural economic zones. Trade Secretary Peter B. Favila announced that the government is now working on the guidelines that would operationalize the conversion of huge tracts of land in different parts of the country into special agri-ecozones. This, Favila said, would allow the locators in the area, from the farmers to the providers of logistics and food processors, to get government incentives. Favila said by establishing the agri-ecozones, the government will be able to stimulate investors to make agricultural areas in the country, particularly Mindanao, more productive. "We want to create a new market, this time geared toward agriculture so our farmers will also benefit from government incentives," he said. This initiative, Favila said, could be started in state-owned lands. Favila said he has mentioned this to President Gloria Macapagal Arroyo and she was “very supportive of the idea." With this, Favila directed Philippine Economic Zone Authority (PEZA) director general Lilia de Lima to coordinate with Agriculture Secretary Arthur Yap in crafting the guidelines. He said the process could just be same as in establishing industrial economic zones and IT parks, wherein Malacañang issues Presidential Proclamations declaring certain estates and buildings as PEZA-accredited zones. However, Favila said the incentives should be according to the particular requirements of agricultural zones. Even the rule on the percentage of the output that should be exported by the locators need not follow the present PEZA regulations on industrial parks and IT buildings. To qualify for incentives like up to eight years of income tax holidays and later the option to pay only 5 percent of gross revenues as income tax and duty-free importation of equipment and raw materials, among others, locators in industrial parks must export at least 70 percent of their production. Favila said he wants the agricultural zones to cover at least 10,000 hectares of lands. Investors from China, he said, are already interested on the logistics side, particularly the putting up cold storage facilities and in addressing supply chain management concerns. “We want to this be an integrated facility," Favila said. He said through this, the country’s food security will also be addressed.- GMANews.TV