Farmers claim fertilizers procured under COVID-19 aid program are overpriced

Some farmers in Central Luzon have alleged that the fertilizers distributed by the Department of Agriculture (DA) under its COVID-19 aid program were overpriced.

In a statement, William Laureta of Tarlac and Ernesto Agustin Domingo of Nueva Ecija said that the purchase of the alleged overpriced fertilizers was under the DA’s stimulus program Ahon Lahat, Pagkaing Sapat Kontra COCVID-19 (ALPAS sa COVID-19).

The farmers claim that the DA purchased 1,811,090 bags of urea fertilizers for P1.8 billion in a series of biddings, which translates to at least P1,000 per bag.

Both Domingo and Laureta claim that the average retail price of urea fertilizer was only at P850 per bag—translating to a whopping P271.66 million in overpriced amounts in the DA’s procurement.

"Farmers could barely survive this crisis, and even the government is virtually scraping the bottom of the barrel now just to look for funds to help the most vulnerable sectors, including farmers, and to keep the economy afloat," Laureta said.

"These Agriculture officials should be taken to task for knowingly entering into an anomalous and overpriced contract. They have betrayed us farmers who need all the help we can get and have defrauded the government of millions of pesos of crucial funds," added Domingo.

In a statement, the Department of Agriculture denied the overpricing allegations, saying proper procurement procedures were followed, and that the government had actually saved money by buying fertilizer under P1,000.

Laureta said in Tarlac, a bag of urea is sold for only P850 while the same bag, according to Domingo, fetches for P860 in Sto. Domingo town in Nueva Ecija.

"It is very clear that the government is on the losing end of this deal, losing millions of pesos -- money that could have been used to help more farmers hit by the pandemic," he said.

Domingo stressed that the DA was in a position to negotiate for an even lower supply contract since it was buying the fertilizers in bulk.

He lamented that some Agriculture officials may have earned millions of pesos in kickbacks from the deal.

Pursuant to Republic Act No. 11469 or the Bayanihan to Heal as One Act, the DA allocated P5.69 billion for the procurement of 5,691,477 bags of urea fertilizers at a price of P1,000 per bag.

The fertilizers should have been distributed to farmers in various regions during the implementation of the enhanced community quarantine.

After holding a bidding on April 29, the DA issued a Notice of Award to La Filipina Uy Gongco Corporation for the delivery of 97,615 bags of urea at P990 per bag or a total amount of P96,638,850 for Region 4A, and 694,904 bags at P995 per bag or P691,429,480 intended for Region 6, or for a combined amount of P788,068,330.

After a separate bidding on May 4, the DA issued another Notice of Award to La Filipina Uy Gongco for the supply and delivery of 911,073 bags of urea fertilizers at P995 per bag, which would be intended for distribution to farmers in Region 3, in the total amount of P906,517,635

A separate Notice of Award was also issued by the DA to Atlas Fertilizer for the delivery of 107,498 bags of urea at a price of P900 per bag or a total of P96,748,200 for Region 7. -MDM, GMA News