FPA Wants Bilateral Agreements for Fertilizer Deals

According to the Fertilizer and Pesticide Authority (FPA), bilateral agreements between the Philippines and other countries can bring down the acquisition cost of fertilizer.

The FPA conducted a study called “Philippine fertilizer price outlook: A reality for farmers and fishers,” which encourages the institutionalization of the incorporation of SRP or suggested retail price as well as MRP or maximum retail price basing it on per region.

Authors of the study, FPA Deputy Executive Director Myer Mula and Economist II Kimberly Coronado mentioned in the study that “Likewise, variation in dealer’s prices is influenced more by the company, brand and logistical cost hence, the incorporation of SRP and MRP should be calculated based on the source of origin and be institutionalized by the Department of Agriculture (DA) and Department of Trade and Industry (DTI) centered on the location where the fertilizers are locally sold …,”

By putting a cap on the MRP and SRP, the retail prices will depend on the location of where the fertilizers will be sold.

In addition, the DTI and DA should compute the MRP and SRP for the fertilizer’s price matrix for each import entry at different cost levels.

Information to be taken into account would be landed costs for import, manufacturing date, source of origin, and date of arrival.

The FPA also mentions that to obtain lower prices and discounts, and save on freight costs, fertilizer importers should coordinate and bulk orders from countries.

“Fertilizers imported at lower prices and less cost will result in cheaper fertilizers available for farmers in the market,” mentions the study.

Source: Philstar