Farmers' group slams second round of fertilizer bidding but DA denies 'overpricing' anew

A farmers group on Saturday denounced the Department of Agriculture's (DA) decision to bid out another batch of supply contracts for urea fertilizer, despite allegations of overpricing in the first few batches.

In a statement, Samahang Industriya ng Agrikultura (SINAG) chairman Rosendo So alleged that the newest contract worth over P1.3 billion, like the first ones that came before it, were also "overpriced" and "disadvantageous" to the government.

In response, Agriculture Secretary William Dar belied SINAG's overpricing claim, saying: "We are wondering where Mr. So has gathered his information, as the second round of bidding has not yet been completed."

According to SINAG, the DA used the same method when it bidded out the first four supply contracts.

"Just like what happened in May, the DA again qualified only one bidder per lot... And all the bid prices are again ridiculously overpriced," So said.

The SINAG official lamented how the DA proceeded with the bid despite protests from various groups and plans at the House of Representatives and the Senate to look into the matter.

"And the DA pushed through with the next round of bidding despite protests from various farmer groups on the first contracts awarded as being overpriced," he added.

According to the statement, six lots have been bidded out for Regions 1 and 2, as well as Cotabato.

The qualified bidders are Goldman's Supply Corp. for North Cotabato at P975 per bag; First Planters Agri Solution for La Union and Ilocos Sur at P975 per bag and Pangasinan at P985 per bag; and Universal Harvester Inc. for Cagayan, Isabela, Nueva Vizcaya, and Quirino at P975 per bag, when in some areas the retail price of urea fertilizer is as low as P850 per bag.

"Our members who are distributors and outlet owners have informed us that the retail prices in Regions 1 and 2 are far lower than the DA's price report," So said.

"Universal Harvester Inc., which won the contracts for Region 2, fetches for a retail price of only P860 per bag. In some areas, for as low as P850 per bag. Did the DA fail to monitor this that it awarded the contract for P975 per bag? That amounts to a P125 overprice per bag of fertilizer," he added.

So said that the overpricing accumulated to P176.41 million with 797,089 bags for Region 1 and 614,233 bags for Region 2 or a total of 1,411,322 bags.

Failed bidding

Dar, however, said that the public bidding for Regions I, II, and North Cotabato is considered failed bidding due to the companies not passing the post qualification.

"The DA's Bid and Awards Committee (BAC) has yet to conclude the public bidding. Technically, it is still on-going," the Agriculture chief said.

"We gladly welcome comments from all quarters, but they should have a factual basis," Dar said.

"In the case of SINAG, Mr. So is again misleading the media and the general public. It is grossly unfair, and he should apologize publicly," he added.

Several lawmakers have earlier filed a resolution seeking to investigate the transactions for the first few batches of bid contracts.

"The DA must have the sense to out on hold and/or suspend the succeeding bidding for the procurement of an additional P3.8 billion worth of fertilizer until the questionable bidding and procurement of the P1.8 billion fertilizer is given clarity," lawmakers said in House Resolution No. 992. -with Joahna Lei Casilao/MDM, GMA News