By Recto Mercene
SEN. Francis G. Escudero has urged the Fertilizer and Pesticide Authority (FPA) to initiate talks with fertilizer manufacturers and distributors about the possibility of a price rollback for fertilizer and pesticide products, saying that the falling prices of oil in the global markets has automatically slashed the production cost of these farm inputs.
Escudero said that, while fertilizer prices are deregulated, the FPA can persuade manufacturers to lower the retail prices of their products for the benefit of small farmers.
“If we don’t do this and allow businessmen to establish their own price, we would not be able to help the agriculture sector because there is no law that declares a price cap on farm inputs. That means that while the profit of businessmen increased, the farmer would remain mired in poverty because of the huge price they pay for farm inputs,” Escudero said.
The senator noted that in 2008, fertilizer prices dropped by as much as 43 percent after the Department of Agriculture (DA) asked fertilizer suppliers to bring down their retail rates to reflect the low price of oil.
Escudero said he sees no reason the FPA, which is under the Office of the President, could not make the same call now. “I don’t see any reason we can’t bring the price of fertilizer down. Even if they reduce the retail price, the manufacturers and distributors would still earn because of the low price of oil today. I’m sure they have profited from the low cost of production,” said the senator, who chairs the Senate Committee on Environment and Natural Resources.
According to a study released last year, fertilizers were cheapest in Ilocos, Cagayan Valley, Western Visayas and Davao. Ironically, they are most expensive in the poorest regions of the country, such as the Autonomous Region in Muslim Mindanao and Eastern Visayas.
Escudero said the FPA should scrutinize the prevailing prices of fertilizers, amid complaints that the retail rates of said farm inputs are not commensurate to the reduction in manufacturing costs brought about by the huge drop in oil prices.
The price of US light crude dropped 5.5 percent, hitting $38.24 a barrel on August 26, the lowest rate since February 2009.
The FPA’s weekly price monitoring covering the period August 10 to 14 showed that a 50-kilogram bag of Triple 14 still has an average price of P1,156.88; a 21-0-0 still costs P558.36; and 16-20-0 is still sold at P977.99 per bag.
“Our farmers are already facing the threat of a strong El Niño in the coming months. They need all the help they can get to augment their finances as they brace for possible crop losses because of the prevailing dry spell,” Escudero said.
The FPA, which is mandated to ensure adequate supply of fertilizers and pesticides at reasonable costs, was transferred from the DA to the Office of the President last year via Executive Order 165.
1 comment
This is great. I agree with Senator Escudero on this one. We should help our farmers on this one for I consider them as the unsung heroes of this nation. Without them, we can never sustain this country. If we want our country to prosper, one of the people we should start to help are the farmers. Mabuhay ka Senator Escudero!