DA tasked to temper rising prices of fertilizer

MANILA, Philippines — Senators are urging the Department of Agriculture (DA) to implement measures to address the rising prices of fertilizers and to boost local production.

During the Senate budget deliberations yesterday, Sen. Juan Miguel Zubiri told the DA to come up with an action plan on addressing the surging fertilizer prices which have significantly affected farmers.

“We can probably approve the budget of the DA, with the collatilla that before we take this to plenary,you give us an actual plan in terms of what steps you are doing to help farmers to have affordable inorganic and organic fertilizer,” Zubiri said, referring to the DA’s proposed budget of P91 billion for next year.

Fertilizer prices in the international market have been rising since May mainly due to larger demand from countries as well as higher freight cost.

Latest data from the Fertilizer and Pesticide Authority (FPA) showed that the average retail price of prilled UREA in the country registered at P1,630.95 per 50-kilo bag based on prices from Oct. 11 to 15.

This is around 56 percent higher than the P1,047.94 price in the same period last year.

The price of ammonium sulfate fertilizer was recorded at P850.55 per 50-kilo bag,  41 percent  higher than  the same period last year, while the price of complete fertilizer prices also increased by 31 percent to P1,404.23 for a 50-kilo bag.

Similarly, ammonium phosphate fertilizer prices jumped by 41 percent to P1,396.24 per 50-kilo bag while the price of muriate of potash (MOP) fertilizer also rose  20 percent to P1,449.51 per 50-kilo bag.

Asked on what the DA has been doing to address the rising prices, Agriculture Undersecretary Ariel Cayanan said they have been distributing fertilizer vouchers under its National Rice Program.

He said rice farmers covered by the Rice Competitiveness Enhancement Fund – Rice Farmers Financial Assistance (RCEF-RFFA) program could also use their P5,000 assistance to purchase fertilizers.

Sen. Cynthia Villar suggested that the DA also encourage the local production of fertilizer, particularly organic, to make prices more affordable to farmers.

She said the DA should allocate P1 billion out of the P4 billion annual budget for the distribution of composting machines to allow farmers to produce their own fertilizers

Zubiri acknowledged that there are private sector firms producing organic fertilizers in the country,

However, he lamented that the government has no similar efforts.

“We have so much materials for organic fertilizers, but I don’t see any programs,” Zubiri said.

Last month, Agriculture Secretary William Dar urged farmers cooperatives and associations (FCAs) to directly import fertilizers from international producers and suppliers in a bid to reduce their costs amid skyrocketing prices.

“The idea is to allow capable FCAs to import their fertilizer requirements, and sell the surplus to fellow farmers in their respective areas,” Dar said earlier.

“This is a win-win proposition for farmers because they could negotiate for lower-priced fertilizers, and engage in trading that could give their respective FCAs additional source of revenue,” he said.