DA: P15.4 billion insufficient for fertilizer subsidy

Given that 85% of fertilizers used by Filipino farmers are inorganic and imported, a P15.4 billion fertilizer subsidy in the the 2023 budget was insufficient, Agriculture Department Assistant Secretary Arnel de Mesa said Tuesday.

De Mesa made the disclosure during the Senate Finance panel's hearing on the Agriculture Department's proposed P163 billion 2023 budget.

"Eighty-five percent [of the fertilizer used by our farmers] are inorganic fertilizer which are all imported, while 10% account for organic fertilizer. The remaining 5% account for other types of fertilizers such as bio-stimulants and biofertilizers, among others," said de Mesa when asked for the fertilizer consumption percentage of Filipino farmers.

The proposed 2023 budget allocates P15.4 billion for fertilizer subsidy, which is distributed to farmers via vouchers with QR codes.

The farmers could then use these to purchase fertilizers from 837 accredited merchandisers nationwide.

"The fertilizer subsidy is P6,600 per hectare, and the priority will be given to farmers cultivating two hectares and below. The rest [of the fund], we will be given to those with above two hectares [of land]," de Mesa said.

"It (subsidy) is good for three bags of urea [kind of fertilizer]. For one hectare, you would need five to six bags. That is why it is only a subsidy," de Mesa added.

De Mesa said the price of urea was around P2,500 per bag or P50 per kilo.

Given the figures, Senator Koko Pimentel said the subsidy was not sufficient.

"Kulang talaga ['yan] kasi tumaas ang presyo ng fertilizer, at 'yung dependence natin sa imported fertilizer nakakalungkot din. So pinagsisikapan nating matulungan ang lahat ng farmers," Pimentel told reporters.

(That figure is really insufficient given increased fertilizer prices and our high dependence on imported fertilizer.)

"Ang bottomline natin, kailangan pataasin natin ang productivity ng lupain sa Pilipinas lalo na sa pag-produce ng pagkain. That's the number one focus. I will join the majority [in this aspect], basta ang focus natin ay food production," Pimentel added.

De Mesa agreed with Pimentel.

"Malaki po talaga ang itinaas ng presyo ng urea this season, so our focus is on urea. But depending on the needs of our farmers, we will adjust," de Mesa said.

Senator Cynthia Villar, chairperson of the Senate Agriculture and Food panel, then suggested that the DA work with the Renucci company which produces cheap and organic fertilizers.

"There is Renucci, they are from Leyte but they also have a plant in Batangas. They want to supply organic fertilizer made in the Philippines which is [priced] at one third of the cost of the imported fertilizer," Villar said.

"We are influencing you to buy this because this will lower the cost. One third of the cost of the imported [fertilizer]... that will be good for us. With the same amount of money, we will be able to give more [fertilizer] to the farmers," Villar added.

De Mesa, in response, said that the DA already reached out to the Renucci company.

"We will be following your suggestion. In fact, I talked to them last night and their product is very promising. We will just coordinate with the PhilRice and the FDA (Food and Drug Administration) to ensure compliance with requirements," de Mesa said. — DVM, GMA News