04/06/2012 (Manila Bulletin) - Local cooking oil manufacturers are seeking a post audit entry on the edible oil importations of at least seven companies following the influx of cheap soya and palm oil into the market.

Jesus L. Arranza, chairman of the Federation of Philippine Industries (FPI), said they are asking the Bureau of Customs to conduct a post audit entry on these imports on the basis of “misdeclarations” and “undervaluations” of such commodities.

“Soya is now 50 percent undervalued,” Arranza alleged.

According to Arranza, the price of soya oil in the global market is at $399,000 per metric ton but the value being declared by importers is only $166,000 or a difference of $232,000 or 58 percent cheaper.

Because the imports are undervalued, importers are not paying the right amount of value added tax to the government. He said they have been verifying the source of a fake receipt issued on one shipment.

Illegal importers of edible cooking oils, like soya and palm, are also taking advantage of the high cost of coconut oil in the global market.

At present, a liter of coconut oil in Metro Manila is sold at P110 as against imported edible cooking oils of P98 to P102 per liter. But in March this year when the alleged “undervaluations” were discovered, the price of soya was still high at $1,300 per ton as against coconut oil of $1,100.

Already, one importer of a popular palm oil brand was already fined P100 million for undervaluation but so far has only paid P29 million, Arranza said. The importer is now back importing palm oil.

Aside from being undervalued, Arranza suspects these imports do not also follow the Vitamin A fortification rule.

Arranza said that coconut oil among other edible oils is a healthier product because it is rich in MCT (medium-chain triglycerides), which prevents Alzheimer’s disease. The CIIF Oil Mills Group of which Arranza is chairman has been religiously complying with the Vitamin A law, he said.

With all the illegal tactics resorted to by illegitimate traders, the number of palm oil brands (consumer packs) in the market has reached 26 while coconut oil brands have been steady at 29. Canola has now 19 brands, Olive oil 18, house brand 16, corn oil 13, soya and sesame 9 each, peanut 3, and sunflower 2.

The colonial mentality of most Filipinos, Arranza said, has also added to the preference that the clearer imported cooking oil is better than coconut oil.