Philippines optimistic of fertilizer negotiations with China

MANILA, Philippines — The Department of Agriculture (DA) is optimistic about the country’s ongoing negotiations with China on the procurement of fertilizer amid rising global prices.

During the DA’s first quarter national management committee meeting in Iloilo, Agriculture Secretary William Dar said the Philippines and the People’s Republic of China are in the middle of bilateral negotiations for the procurement of fertilizers, including biofertilizers and biostimulants.

“We have been talking with Ambassador Huang Xilian on the country’s ongoing request to buy fertilizers from China, and we are optimistic about the positive result of our discussions regarding the potential trade,” Dar said.

In a virtual presser yesterday, Dar said he was told by Huang that they would give priority to the Philippines with regard to its request to buy fertilizer.

Fertilizer and Pesticide Authority (FPA) director Wilfredo Roldan earlier said the country was in talks with China for the supply of fertilizers amid skyrocketing prices in the global market.

Roldan said the Philippines is eyeing to set the price at $500 per metric ton based on the recommendation of the Department of Agriculture- International Affairs Division (DA-IAD), which is lower than the nearly $1,000 per metric ton (MT) price in the global market.

Fertilizer prices in the international market have been rising since May last year 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 registered at P2,691.16 per 50-kilo bag from March 21 to 25.

This is more than double the P1,097.31 per 50-kilo bag price in the same period last year.

Apart from China, Roldan said the FPA had already made steps to represent the Philippines in negotiating with fertilizer producing countries such as Indonesia, Malaysia, and Iran.

In November, Dar acknowledged the possibility of having government-to government talks with China and other countries to address rising fertilizer prices.

He encouraged farmers’ cooperatives and associations to directly import fertilizers from international producers and suppliers in a bid to reduce their costs amid skyrocketing prices.

Aside from negotiating with fertilizer-producing countries, Dar also emphasized the promotion and implementation of balanced fertilization, which combines organic and inorganic fertilizer, as another measure to address the issue of rising fertilizer prices.

The DA is also distributing fertilizer discount vouchers for eligible rice, corn and cassava farmers under the National Rice Program (NRP) and the National Corn Program (NCP).

The discount vouchers under the NRP shall have a value equivalent to P1,131 per hectare for areas planted with inbred seeds, and P2,262 per hectare for hybrid, while a P2,000 discount voucher will be given to eligible farmers under the NCP.