DA Targets G2G Deal for Fertilizers

The Philippines is aiming to finalize government-to-government (G2G) deals for fertilizers by January to lessen input costs while raising the yields of farmers.

Last July, President Marcos mentioned that possible G2G negotiations are underway to aid in lowering government costs for subsidizing raw products like fertilizers.

The Department of Agriculture (DA) currently has negotiations with potential fertilizer sources for the release of the 2023 budget, shares DA Assistant Secretary for Operations, Arnel de Mesa.

“We are looking at all countries because the President ordered to get the cheapest,” de Mesa mentions.

“For the G2G, the lower the price, the higher the volume we can get. That’s also what the President wants, to get lower prices and higher volume,”

According to de Mesa, the DA is also looking to finalize the volume and the amount to be allocated to inorganic and other types of fertilizers.

Data from the Fertilizer and Pesticide Authority (FPA) depicts that the average price of urea in the country is still high but steady at an estimated ₱2,500 per 50-kilogram (kg) bag.

In other countries, prices range from an estimated ₱1,800 per 50-kg bag said de Mesa.

“So we’re looking what’s the most advantageous to government. The target is to finalize this in January,”  he adds, noting that now is the best time to finalize the negotiations before the wet planting season beginning March.

The DA has increased the subsidy of fertilizer from ₱1,131 per hectare for areas planting with inbred seeds and ₱2,262 per hectare for a hybrid to a standard ₱6,600 per hectare for both inbred and hybrid farm areas.

Source: Philstar