PHL eyeing govt-to-govt deals to cut fertilizer prices, input costs
THE government will negotiate government- to- government deals to reduce fertilizer prices and input costs, according to Agriculture Secretary Francisco Tiu Laurel Jr.
“There’s a big chance we can bring down the price of fertilizers,”
Laurel said, speaking mostly in Filipino, in a radio interview on Monday ahead of President Ferdinand Marcos Jr.’s State of the Nation Address ( Sona).
The agriculture chief said he instructed the government- owned or- controlled corporation ( GOCC) Planters Products, Inc. to negotiate with foreign governments and conduct G2G transactions regarding the farm input.
“I expect that government can buy fertilizers that are maybe 10 to 20 percent less so we can give them to farmers this coming cropping season and maybe next year,” he said.
Laurel noted the lack of investment in the agricultural sector for the last 30 years, particularly in terms of drying systems for key farm products like rice and corn.
He said the department will be investing more in post- harvest facilities, cold storages, and also ports to ease the cost of entry of livestock feeds and fertilizers.
What’s important, he said , “is to bring down input cost so that the eventual cost of production goes down, and farmers’ incomes rise and [ and] prices are lower when they rerach consumers.”
Meanwhile, the Department of Agriculture ( DA) recently urged a Vietnamese fertilizer manufacturer to put up a factory in the Philippines to make its products more accessible to local planters.
The DA said a delegation led by Laurel met executives of Binh Dien Fertilizer Joint Stock Co. in Vietnam to explore areas of cooperation, particularly the potential for the firm to supply, or if viable, to manufacture fertilizer in the Philippines.
During his recent visit to Binh Dien’s facilities, Laurel highlighted the need for the Vietnamese fertilizer giant’s presence in the Philippines to help increase local farm production.
“We see great potential in partnering with Binh Dien. Our country stands to benefit significantly from their advanced technology and expertise in agriculture,” he said in a statement.
The country relies heavily on imports to meet its demand for various fertilizer grades. Citing data from the Bureau of Customs ( BOC), the Congressional Policy and Budget Research Department ( CPBRD) said imports accounted for almost 87 percent of the fertilizer used by the Philippines in 2021 to 2023.
Last year, the think tank said the country imported a total of 2.54 million metric tons ( MMT) of fertilizer products, mostly from China. Of the volume, more than half consisted of nitrogenous types like urea.