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The United Sugar Producers Federation (UNIFED) on Sunday joined requires the federal government to instantly impose a value freeze on fertilizer to assist sugar planters, notably small-scale farmers, address hovering fertilizer costs.
UNIFED urged the Division of Agriculture (DA) and the Division of Commerce and Business to instantly situation a value freeze on fertilizer merchandise. The group famous that the price of fertilizer out there has “virtually tripled” in lower than two years.
UNIFED President Manuel Lamata mentioned his group has been interesting to the federal government since final yr to implement the value cap on fertilizers or no less than subsidize the price of the farm enter.
“After we first requested for assist, the price of urea fertilizers was already at P1,900 per 50-kilogram bag from P800-P900 only a yr in the past. Now, it’s being offered at P2,300-P2,400. With the beginning of the planting season, there might be many farmers who could not have the ability to afford fertilizers and it will have an effect on manufacturing within the subsequent crop yr,” Lamata mentioned.
“Bear in mind, the sugar business consists of 85 % small farmers and agrarian reform beneficiaries and our fear is that, with the excessive value of fertilizers plus the excessive price of gas and different agricultural inputs, these small farmers could not have the ability to survive to see one other crop yr.”
Lamata mentioned the rise in sugar costs isn’t sufficient to compensate for the excessive manufacturing prices that sugar farmers are incurring at this time.
“The DA and DTI have to maneuver and deal with this earlier than it will get out of hand.”
He added that the surge in oil costs can also be placing strain on sugar manufacturing as greater diesel or gasoline costs “have an effect on all elements of sugar planting from land preparation to milling.”
“Diesel costs had been lower than P30 per liter two years in the past and now it has breached the P50 per liter mark. How else can our small farmers survive when the value of fertilizers, gas and different inputs is the same as or much more than the value of their produce,” he mentioned.
“That is unacceptable and one thing needs to be carried out. Worse is the inaction coming from the Sugar Regulatory Administration which ought to have addressed this earlier than it reached this example.”
Final week, the DA introduced that it’s getting ready to implement a P500-million gas subsidy program. (Associated story: https://businessmirror.com.ph/2022/01/24/da-readies-%e2percent82percenta7500-m-fuel-subsidy-program-for-farmers-fisherfolk-amid-oil-price-hikes/)
In a press release, the DA mentioned the federal government has allotted P500 million this yr to bankroll a gas subsidy program for the agriculture sector to mitigate the affect of rising oil costs on meals manufacturing. The fund is stipulated in Particular Provision 20 of the Normal Appropriations Act for Fiscal Yr 2022 or Republic Act 11639.
“We sincerely thank President Duterte and the honorable members of the Senate and Home of Representatives for approving the gas subsidy program that appropriates P500 million for the gas subsidy program that can profit hundreds of thousands of Filipino farmers, fishers and customers nationwide,” Agriculture Secretary William D. Dar mentioned.
“The gas low cost will certainly assist cut back the manufacturing and transport prices of main farm and fishery merchandise, and subsequently mood their respective market costs, thus benefiting producers and customers alike.”
Particular Provision 20 stipulates {that a} gas low cost program could be in impact if the common Dubai crude oil value, based mostly on Meat of Platts Singapore for 3 months reaches or exceeds $80 per barrel. The beneficiaries of this system should be farmers or fishers who personal and function agricultural and fishery equipment individually or via a farmers’ group or cooperative.
Picture credit: James MacDonald/Bloomberg
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