Farmers group wants halt in DA's next fertilizer bidding until overpricing issue is resolved

The Kilusang Magbubukid ng Pilipinas (KMP) on Friday urged the Department of Agriculture to put on hold its procurement of a next batch of fertilizers, saying the agency is not yet off the hook after Central Luzon farmers alleged that the earlier batch of fertilizers it procured were overpriced.

“We must get to the bottom of this matter and make accountable those who are involved in the negotiated bidding for the emergency purchase of P1.8-billion worth of fertilizer,” KMP chairman emeritus Rafael Mariano said in a statement.

“The resolution of this issue is imperative especially since DA will procure another P3.8-billion worth of fertilizer. The next bidding must be put on hold until this matter on the P1.8-billion fertilizer contract is resolved,” Mariano said.

Farmers from Tarlac and Nueva Ecija have earlier alleged that the fertilizers distributed the DA under its stimulus program Ahon Lahat, Pagkaing Sapat Kontra COVID-19 were overpriced. 

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.

The farmers 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.

The DA has since denied the allegations, saying that the procurement process of fertilizers were corruption free and were actually cheaper compared to national averages. 

“We have initially procured a total of 1,811,090 bags of urea fertilizer at a price lower than the national average retail prices of P1,035.60 for April 27 to May 1; P1,037.53 for May 4 to 8; and P1,040.68 for May 11 to 15. The volume procured comprises four of the 16 lots for wet season 2020 cropping,” Agriculture Secretary William Dar said.

"Such prices were a lot cheaper compared to previous purchases at the regions, ranging from P1,300 to P1,500 per 50-kilo bag of urea fertilizer," he said.

On April 28, the DA posted an invitation to bid for the supply and delivery of 5.69 million bags of urea fertilizer with an approved budget of P5.69 billion.

“Ayaw natin maulit ang kontrobersyal na P728-million Jocjoc Bolante fertilizer scam na walang naparusahan at nanagot. Corruption is unconscionable especially as farmers are now demanding immediate production aid,” Mariano said, in statement posted at the KMP's Facebook.

The DA conducted a series of bidding that attracted fertilizer manufacturers and distributors in the country, starting on April 29, 2020, for the procurement of 5,691,477 bags with the ABC of P5,691,477,000.

It has issued the notices of award to the two winning fertilizer companies namely:

• La Filipina Uy Congo Corporation for the delivery of 97,615 bags at P990/bag to Region 4A; 694,904 bags at P995/bag to Region 6, and 911,073 bags at P995/bag to Region 3, on May 8, 2020 and May 14, 2020, respectively
• Atlas Fertilizer for the delivery of 107,498 bags at P900/bag to Region 7 on May 14, 2020.

Mariano said he fears of more corruption if this issue goes unchecked, especially since the entire P31.5B budget for “Plant, Plant, Plant” or ALPAS-COVID program are lump sum funds without detailed project allocation. -MDM, GMA News