‘Allot P15B for fertilizer aid to hike rice output’
PRESIDENT-ELECT and incoming Agriculture Secretary Ferdinand R. Marcos Jr. must shell out at least P15 billion to expand the government’s fertilizer subsidy program, which will help farmers raise local rice production.
Outgoing Agriculture Secretary William D. Dar said the incoming agriculture leadership the fertilizer voucher program will sustain the productivity of rice planters.
“The latest calculations if we want a sustained level of productivity and production volume like last year if not better than the 19 million metric tons (MMT), with the balanced fertilization strategy which will reduce by 50 percent the application of chemical fertilizer, (government) needs to spend P15 billion,” Dar said in a press briefing on Wednesday.
Without the additional fertilizer subsidies, the country’s paddy rice output could decline by 1.1 million metric tons (MMT) to as much as 1.3 MMT or 715,000 metric tons (MT) to 815,000 MT in milled terms.
The DA is currently implementing a P5.85- billion fertilizer vouchersome 3 million hectares of rice farms nationwide. (Related story: https://businessmirror.com.ph/2022/03/09/da-issues-rulesfor-fertilizer-aid-scheme/)
Under the program, discount vouchers will be used by farmer beneficiaries to claim fertilizer sat accredited merchants. The vouchers will have a value equivalent to P1,131 per hectare for inbred rice and P2,262 per hectare for hybrid rice.
The DA said the rice farmers’ production cost of palay rose by P3.13 per kilogram due to more expensive fertilizer which surged to a record P3,000 per 50-kg bag.
Due to higher fertilizer prices, rice farmers have been forced to reduce their application of the input, resulting in lower yield.
Agriculture Undersecretary Leocadio Sebastian said the country’s palay production may fall below the 2020 level of 19.3 MMT if the government will not be able to mitigate the impact of reduced fertilizer application on output.
“But I think the incoming administration is keen on implementing measures to mitigate the reduction. Our palay production target this year is 20.4 MMT,” he said. “So, we will have a hard time [achieving it] because of the reduction in fertilizer use.”
Nonetheless, Sebastian said the government still has enough time to bankroll another round of fertilizer subsidies since planting for the wet cropping season will start next month. He said, however, that the government must act immediately.
Agricultural production in the first quarter dipped by 0.3 percent due to the contraction in the output of the crops, fisheries and livestock subsectors.
Dar earlier attributed this to “spiraling prices” of fertilizer, a critical input for crops production, particularly rice and corn. (Related story: https://businessmirror.com.ph/2022/05/11/farm-output-dips-slightly-in-q1-fertilizerprice-spikes-blamed/)