Philippines in talks with China for fertilizer imports

MANILA, Philippines — The Philippines is negotiating with China to source fertilizers at a more affordable price amid rising prices in the global market, according to the Fertilizer and Pesticide Authority (FPA).

In a virtual briefing yesterday, FPA executive director Wilfredo Roldan said the country is in talks with China for the supply of fertilizers.

“In our last negotiations (with China), they were quite compassionate in dealing with the Philippines,” Roldan said.

“We are still negotiating with China. China was just asking me how much we need in terms of fertilizer. They were trying to ask me how much price we can absorb. I said whatever price you feel you can help the Filipino people. They want a firm offer,” Roldan said.

Roldan said the Philippines is eyeing to set the price at $500 per metric ton based on the recommendation of the Department of Agriculture- International Affairs Division (DA-IAD).

The prices of fertilizers in the global market have reached nearly $1,000 per metric ton (MT), more than triple the average price of $300 per MT from January to February 2021.

“This is caused by a lot of things. One, the sudden increase in demand in urea and other fertilizers in India and the increase in agricultural land in Australia and the increase in production in livestock. Of course when you increase your livestock, you also have to plant more corn,” Roldan said, adding that corn is one of the largest users of fertilizers.

The skyrocketing prices of fertilizers have already been felt in the country. The average retail price of prilled urea and granular urea reached P2,517.74 and P2,522.95 for a 50 kilo bag, respectively, as of Jan 24 to 28, according to the FPA.

This is more than double the P1,046 and P993.31 average retail prices in the same period last year.

Following the directive of Agriculture Secretary William Dar, Roldan said the FPA addressed the rising fertilizer prices as the agency initially made steps to represent the Philippines in negotiating with fertilizer producing countries like China, Indonesia, Malaysia and Iran.

Roldan said the Philippines uses around 2.5 million MT of fertilizers every year.

At present, the country only has a fertilizer inventory of 200,000 MT.

In November, Dar acknowledged the possibility of having government-to government talks with China and other countries to address rising fertilizer prices.

He encouraged farmers’ cooperatives and associations to directly import fertilizers from international producers and suppliers in a bid to reduce their costs amid skyrocketing prices.