MANILA (March 13) — The Department of Agriculture (DA) is seeking additional funds to expand fuel assistance for farmers and fisherfolk while pushing for the wider use of organic fertilizers to cushion the impact of rising global oil prices linked to the war in Iran.
DA spokesperson Arnel de Mesa said Wednesday the agency is exploring other funding sources, including unused allocations currently held by the Development Bank of the Philippines, to sustain its fuel subsidy program.
“We are seeing other possible funding that was not used and is currently with the Development Bank of the Philippines,” de Mesa said. “We can also look at how we can retain this with the DA for release to farmers and fisherfolk instead of being returned to the Treasury.”
The DA is also considering tapping the Presidential Assistance for Farmers and Fisherfolk Program (PAFFP), which has a P10-billion budget intended for calamity-related assistance.
“We are coordinating with the operations group on how this can be tapped if the problem in the Middle East would be prolonged,” de Mesa added.
Last week, the agency said it was ready to distribute about PHP 100 million in fuel aid to help farmers and fisherfolk cope with anticipated oil price hikes triggered by tensions in the Middle East.
Another PHP 50 million — representing the remaining balance of the DA’s unused PHP 150-million fuel subsidy allocation in 2025 that remains valid this year — may also be requested from the Department of Budget and Management.
Agriculture Secretary Francisco Tiu Laurel Jr. has already ordered his office to process the request for the release of the remaining funds.
Eligible farmers are expected to receive PHP 5,000 each, while fisherfolk will get PHP 3,000. The program is projected to benefit more than 14,000 farmers and 23,000 fisherfolk nationwide.
Shift toward organic fertilizers
Alongside the fuel assistance, the DA is encouraging farmers to adopt organic fertilizers and biofertilizers as a cost-saving alternative to synthetic products whose prices are beginning to rise.
“In some studies, biofertilizer can replace up to 50 percent of synthetic fertilizers,” de Mesa said.
Fertilizer prices have already inched up from about PHP 1,600 per bag to as high as PHP 1,700 in some areas, partly due to higher shipping costs.
However, the DA believes prices are unlikely to reach the PHP 3,000-per-bag level recorded during the Russia–Ukraine War.
The agency is also studying ways to tap Planters Products Inc. to ensure farmers have access to more affordable fertilizers.
A special DA team formed by Tiu Laurel is currently assessing possible interventions, including the potential rollout of fertilizer subsidies should global tensions continue to drive up farm input costs.
The department said it wants to prevent a repeat of past productivity declines caused by expensive farm inputs, which could push up the farmgate price of palay and ultimately affect rice prices in the market.
“We don’t want that to happen because it would affect pricing of palay and rice at the farmgate level and in the market,” de Mesa said.
