The Department of Agriculture (DA) assured farmers of help in dealing with the effects of rising prices of petroleum and fertilizers on their production costs.
Ariel Cayanan, DA undersecretary for operations and agri-fisheries mechanization, said Agriculture Secretary William Dar has issued a directive to secure more funding that will increase the fertilizer subsidy provided to rice farmers.
“Secretary (Dar) has a proposal and (has)… ordered the crafting of a communication on how to source out different funds and… possibly ask.. the Office of the President to increase this subsidy. We cover the fertilizer of farmers who received seeds (from the DA). For 2022, we will be covering 4 million hectares,” Cayanan said in virtual briefing yesterday.
Cayanan said at present, P2,000 is allotted to farmers who plant inbred rice seeds and P3,000 is given those who plant hybrid rice seeds.
The DA said the amounts used to be enough to buy as much as three bags of urea fertilizers at P1,000 per bag.
But the price has gone up to P1,718 per bag to date.
Cayanan said the DA cannot provide an estimate of the additional subsidy that can be allotted as the national government is also facing funding constraints.
“For now, it is very hard (to provide estimates,) we will look at what is available then request from it,” Cayanan said.
Fermin Adriano, DA undersecretary for policy, planning and research, said the agency and the Department of Energy are pushing for a scheme that will provide discounts or subsidies on fuel purchased by farmers and fisherfolk.
Adriano believes scrapping the excise tax on fuel may not be feasible at the moment especially since the government needs revenues.
Adriano, an economist, said instead, the government may opt for a temporary reduction in fuel excise taxes.
After nine consecutive weeks of oil price hikes, oil players implemented a mixed movement this week.
Per liter prices of gasoline increased by P1.15. Prices were rolled back by P0.35 for diesel and by P0.30 for kerosene .
As of October 19, year-to-date adjustments on fuel prices summed up to a net increase of P19.65 per liter for gasoline, P18 per liter for diesel and P15.49 per liter for kerosene.
