ESTABLISHMENT:

1977 – Since application of pesticide products goes side by side with fertilizers in agricultural production, the government thought of expanding its regulatory powers to pesticide industries. The FIA was then replaced by the Fertilizer and Pesticide Authority (FPA) which was created on 30 May 1977 by virtue of P.D. 1144. This is also attributed to the fact that fertilizer and pesticide industries possesses the same clientele, distribution channels, system of application in farmers’ fields and technical supervision by the same farm management technicians under the government's food production program.

Under the new law, FPA acquired broader powers with absolute control over the fertilizer and pesticide sector. FPA’s mandate can be categorized into regulatory, monitoring, evaluation, and promotion.


GROWTH:

The fertilizer industry was liberalized as part of the government’s policy to open up domestic agriculture to foreign competition. This included the abandonment of quantitative restriction for fertilizer and with it the price-setting function of FPA. Import duties were also reduced to one to three percent through a series of tariff reduction executive issuances.
The Agriculture and Fisheries Modernization Act (AFMA) allowed the duty-free importation of fertilizer enterprises engaged in agriculture. The law exempts fertilizer subsidiaries from payment of the 12% Value-Added Tax.
FPA was transferred to the Office of the Presidential Assistant for Food Security and Agricultural Modernization (OPAFSAM) through Executive Order No. 165 signed by President Benigno Aquino III.
FPA was brought back to DA’s fold by virtue of Executive Order 62 signed by President Rodrigo Roa Duterte.