Metro Manila, Philippines – The Department of Agriculture (DA) has created a team to study the fertilizer supply which is also affected by the heightened tensions in the Middle East.
The team is expected to recommend alternatives to synthetic fertilizers commonly used by farmers. These are fuel-based with natural gas-based inputs. Almost all of the supply is imported, with sources including China and Qatar.
Agriculture spokesperson Arnel de Mesa said the DA has observed slight increases in fertilizer prices, and persistently high costs may only hurt productivity and profit.
“Ang basic reason ng pagtataas niyan ay ‘yong freight cost at pagmahal ng pagdala dito sa atin,” De Mesa said in a news conference on Wednesday, March 11.
[Translation: The basic reason for the increase is freight costs and the spike in transportation costs.]
Agriculture Secretary Francisco Tiu Laurel Jr. is looking into organic fertilizers, with the use of bio-n and biofertilizers, which could replace up to 50 percent of the nitrogen requirement, De Mesa said.
“We can also look du’n sa provision na magkaroon ng G2G (government-to-government) arrangement for fertilizer. All options tinitingnan ng kalihim para makatulong,” De Mesa said.
[Translation: We can also look into the provision of G2G arrangement for fertilizer. The secretary is checking all options to help.]
Tapping the Presidential Assistance for Farmers and Fisherfolk program, which has P10 billion in the current budget, is also possible to provide cash subsidies for fertilizer.
No major price spikes yet
Citing the inflation report of the Philippine Statistics Authority, De Mesa said rice inflation may go to “positive territory” in the next rounds due to base cost.
He said more expenses, especially with the big-time fuel price hike this week, may also push rice prices upward.
“Kaya kailangan ng suporta talaga ng ating mga magsasaka to maintain productivity, to maintain ‘yong presyo ng bigas na hindi masyadong mataas,” he said.
[Translation: That’s why farmers need support to maintain productivity, to maintain the price of rice that is still affordable.]
Aside from expensive fertilizer, the possible continued rise of fuel prices could also pose a big impact on the movement of agricultural goods, the DA official said.
When asked if there are already major price spikes in agricultural goods, De Mesa said: “Most of the commodities halos hindi pa gumagalaw sa ngayon, except for very few katulad ng galunggong saka karne. All other commodities, lalo na ang bigas, wala pang paggalaw.
[Translation: Most of the commodities have no price movements for now, except for very few like round scad and meat. There are no movements for all other commodities, especially rice.]
He reported an increase of 10 percent in the prices of galunggong or round scad, with the prevailing price at P320 per kilogram in markets.
Liempo or pork belly prices surged to around 8 to 10 percent, reaching the level of P370 to P380 per kilogram from P340 last week.
Costs of specific vegetables such as potatoes and habichuelas or Baguio beans have posted an 8 to 10 percent hike.
De Mesa said the agency will be closely monitoring gaps in farmgate and market prices, but implementing a maximum suggested retail price to stop further hikes is still not yet on the table.
The distribution of farmers’ fuel subsidies will start in the next two weeks, but he stressed this could only provide temporary relief if the Middle East war is prolonged.
He highlighted the importance of the passage of the bill granting the president temporary powers to reduce the excise tax to significantly slash fuel prices.
