MANILA, Philippines — The Department of Agriculture (DA) is looking at providing additional fertilizer subsidies to farmers as well as setting a suggested retail price (SRP) as part of efforts to address the rising costs of the product.
In a virtual press briefing yesterday, Agriculture Undersecretary Leo Sebastian said they need to address the rising prices of fertilizer in a holistic way. This involves both the implementation of policies by the government as well as initiatives that will make the use of fertilizer more efficient among farmers.
At the DA level, Sebastian said Agriculture Secretary William Dar is considering the possibility of providing additional subsidies for fertilizer.
“But this will require substantial funding so we need to look at how we will be able to do this,” Sebastian said in Filipino.
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 stood at P1,630.95 per 50-kilo bag based on prices from Oct. 11 to 15.
This is 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 a year ago while the price of complete fertilizer also increased by 31 percent to P1,404.23 for a 50-kilo bag.
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.
Sebastian said the FPA has been directed by Dar to continue monitoring fertilizer prices in a bid to assess the possibility of implementing an SRP for fertilizer, if the gap between the landed cost and retail prices is too high.
“The FPA is also continuously assisting farmer cooperatives and associations (FCAs) who are interested in importing fertilizers,” Sebastian said.
This is in line with Dar’s earlier call to FCAs to directly import fertilizers from international producers and suppliers in a bid to reduce their costs amid skyrocketing prices.
Sebastian added that government corporation Planters Products Inc. (PPI) is also exploring the possibility of importing more fertilizer as well as biologics.
“We are encouraging them (PPI) to seek or look for more partners that already have capital, warehouses and distribution points because that is what they lack,” Dar said.
Meanwhile, the DA said its Bureau of Soils and Water Management (BSWM) would also intensify the campaign to promote balanced fertilization that combines the application of organic and inorganic fertilizers based on crop and soil nutrient content.
The BSWM will also work with the Philippine Rice Research Institute (PhilRice) to intensify the campaign on the efficient and effective application of inorganic fertilizers, using leaf color chart, soil testing, combined with balanced fertilization, aimed at reducing the volume of inorganic fertilizer applied and increasing crop productivity.
Moreover, the DA, through its National Organic Agriculture Program (NOAP), will strongly pursue its mandated tasks, particularly promoting organic agriculture and increasing the production of organic fertilizers.
“Studies show that organic fertilizers are very suitable for unflooded crop cultivation, where the organic nitrogen can replace inorganic nitrogen at a higher ratio without adverse effects on crop productivity and soil structure. Hence, the NOAP will encourage farmers to apply organic fertilizers to corn, vegetables, and other dryland/upland crops,” the DA said.