ASIN - LITTLE GRAINS, MAJOR IMPACT: AN INFORMATIVE JOURNAL

Southeast Asia's salt industry has a long and rich history dating back centuries. The Philippines in particular, with its tropical climate, numerous seawater sources, and inland saltwater reservoirs, benefits from natural conditions ideal for salt manufacturing. While manufacturing salt is an age-old process, it is multifaceted and intricate, with varying methods of production to suit different locations and market demands. Standard salt production processes include evaporation, boiling, and vacuum evaporation.

 Salt producers in coastal areas utilize solar evaporation to harvest salt by storing saltwater in shallow ponds and allowing it to evaporate from the sun's heat. The residual salt is then gathered and dried. Inland areas depend on brine wells and saltwater lakes to produce salt. Wells are commonly used to access these sources, and salt is collected by boiling or through vacuum evaporation methods. However, the local producer faces issues such as environmental degradation, growing competition with imported salt, changing consumer preferences and mandatory iodization, thus causing the slow, untimely decline of salt production in the country. Producers are researching strategies to improve sustainability and raise product value, including manufacturing premium salt types and expanding into specific markets. The Philippines relies on both domestic manufacturing and imports to sustain its salt needs. The Department of Agriculture (DA) reports that the country is experiencing a salt shortage, requiring imports of up to 93% just to meet current demand.

WHERE THE "ASIN" HAPPENS

Salt-making farms in the Philippines are primarily located in coastal regions like Pangasinan, Ilocos, Mindoro, and others. As mentioned above, traditional methods for collecting and processing seawater to produce salt include solar evaporation. However, to meet its needs, the country's production processes must adapt and improve. Various businesses, including food processing, cattle farming, and chemical manufacturing, continue to rely on imported salt for supply. Unfortunately, the Philippines' salt industry consists of small-scale manufacturers who only produce less than 10 metric tons per day. The production is a long-winded process which involves collecting, purifying, and moving seawater to evaporation ponds. Given that salt is frequently and heavily used, a constant and consistent local supply is necessary. For instance, salt serves as a food preservative, flavoring, and ingredient in processed meals. Accordingly, Philippines' population growth and increased demand for processed foods are predicted to lead to a rise in salt consumption. However, because production is mostly small-scale, and traditional methods like sun drying and hand harvesting are time-consuming, the country's salt supply continues to stay low and insufficient.

PBBM SIGNS PHILIPPINE SALT INDUSTRY DEVELOPMENT ACT INTO LAW

On March 11, 2024, President Ferdinand R. Marcos Jr. signed Republic Act No. (RA) 11985, known as the “Philippine Salt Industry Development Act,” marking a significant legislative  step aimed at revitalizing the domestic salt sector and reducing dependency on imported salt, in alignment with national food security objectives.

KEY PROVISIONS AND IMPLEMENTATION

RA 11985 mandates the creation of a comprehensive roadmap for the salt industry, encompassing development, management, research, processing, utilization, business modernization, and commercialization of locally produced salt. It establishes a 16-member Salt Council, chaired by the Secretary of Agriculture, to ensure cohesive implementation and accelerate industry modernization.

LEAD AGENCY AND OVERSIGHT

The DA, specifically through its Bureau of Fisheries and Aquatic Resources (BFAR), assumes the lead role in executing RA 11985. To manage the implementation of the law and supervise the execution of its development plan, the BFAR Director will establish a dedicated Project Management Office (PMO).

PUBLIC LAND DESIGNATION AND SALT PRODUCTION

The Department of Environment and Natural Resources (DENR), through its appropriate bureaus and attached agency, the National Mapping and Resource Information Authority (NAMRIA), and BFAR, will map and designate public lands, including municipal waters, for use as salt production areas. This transfer of administrative jurisdiction from DENR to BFAR facilitates the issuance of Salt Production Tenurial Instruments (SPTI) to qualified salt producers. These instruments are exclusively designated for salt producers, ensuring that public lands are utilized solely for this purpose, with allowances made for fisheries and aquaculture activities.

REGISTRATION AND REGULATORY OVERSIGHT

Under RA 11985, all salt producers are required to register with BFAR. Concurrently, the Food and Drug Administration (FDA) retains jurisdiction over the registration of salt intended for human consumption, as stipulated by Republic Act No. 8172 and the “Food Safety Act of 2013.”

REMOVAL OF IODIZATION REQUIREMENT

A notable revision introduced by RA 11985 is the elimination of mandatory iodization for artisanal and non-food grade salt, as well as salt intended for export. Previously mandated under RA 8172, known as the “Asin Law,” iodization aimed to combat iodine deficiency but inadvertently imposed additional costs on non-food salt used for purposes such as sanitation and water filtration. This adjustment aims to enhance industry f lexibility and competitiveness.

TARIFF ADJUSTMENTS TO PROMOTE LOCAL PRODUCTION

Historically, imported salt has enjoyed tariff-free status since the late 1990s, rendering it economically advantageous over locally produced salt. With the enactment of RA 11985, imported salt will now be subject to a 9% ad valorem duty. This tariff adjustment is designed to stimulate domestic salt production, meeting the needs of commercial and industrial users and reducing reliance on imports.  With RA 11985 in place, the government aims to significantly increase domestic salt production, achieve self-sufficiency, and position the Philippines as a potential exporter in the global salt market. This legislative initiative underscores the government’s commitment to boosting economic resilience, promoting sustainable development, and ensuring food security for all Filipinos.

SOMETHING TO PONDER ON

In the Philippines, the salt industry can significantly drive the country’s economy, providing employment to thousands of people and generating the production of a wide range of goods. Hence, a golden opportunity lies in this long-neglected, antiquated industry. Revival could be the most promising and ideal solution—thus the birth of RA 11985. The revival of the salt industry is not just about economic gains; it also has social implications. The industry’s growth will create numerous job opportunities, especially in rural areas, improving the livelihood of many Filipinos. Additionally, a robust salt industry can reduce the country’s dependence on imported salt, promoting self-sufficiency and food security. In essence, the salt industry holds immense potential for the Philippines. Addressing current issues and preventing future shortages through RA 11985 can lead to significant economic and social benefits. By revitalizing this essential industry, the Philippines can ensure a stable supply of salt, support local employment, and drive economic growth.