AN estimated P152 million in transport costs may be saved through the Department of Agriculture’s (DA) toll exemption program, DA Undersecretary Arrey Perez said on Tuesday.
The program, which was implemented on Monday, exempts vehicles carrying agricultural products from toll fees for one month — as part of government’s response to the global oil shock.
The DA previously said that the toll exemptions would yield P1,500 to P3,000 in savings per trip.
Logistics expenses add P2 to P5 per kilogram of vegetable produce to retail prices, and removing toll fees will keep added costs from being passed on to consumers.
The projected P152 million savings is based on the 1,162 transport vehicles that initially registered in the toll exemption program, Perez said.
Some 300 additional vehicles from different regions registered over the weekend. These include vehicles passing through expressways in Ilocos, Cagayan Valley, the Cordillera Administrative Region, Central Luzon, Calabarzon, Mimaropa and Bicol.
The DA is targeting at least 4,000 vehicles to be accredited in the program, the same number which were registered under its Food Lane program during the pandemic.
To sign up, owners of agricultural hauling vehicles must apply for a DA Accreditation Certificate through http://foodlane.da.gov.ph/. The vehicles must have an existing radio frequency identification (RFID) sticker, or apply for one. Applicants also need to submit required documents to the nearest tollway customer service office for processing.
The toll exemption is activated via the RFID 24 hours after submission of requirements.
Achieving a target of 4,000 registered vehicles would translate to 16 million kilograms of agricultural commodity deliveries daily, DA Assistant Secretary Daniel Atayde said.
While the program is good only for one month, the DA said it may be extended, depending on the severity of effects of the increased transport costs on agricultural products.
For its part, the Philippine Ports Authority launched a Piso Ro-Ro Terminal Fee Program starting March 25, aimed at reducing logistics costs for essential goods. Under this program, the terminal fee for trucks carrying agricultural products is slashed to just P1.00 across ports nationwide.
This program will run for six months.