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What are the reasons for the high price of fertilizers in 2021?
 
Most fertilizer prices soared in 2021, particularly phosphates and urea, driven by strong demand and higher input costs. Potash prices remained broadly stable on ample supply. 
 
For one, the increase in the fertilizer prices can be attributed to the increase in the importation demand of fertilizers in countries like the US, Brazil, India, and Australia. 

 

• In the US, prices of corn are fuelling expectations of higher demand for urea and hence higher prices. 

 In Brazil, corn fundamentals also look very strong and boost urea imports towards 8 million MT until 2022. 

• An approximate $501/MT is the current demand of India for urea fertilizers and the the country has already made an advance booking of fertilizer supply at 1.8M MT. 

• Australia, on the other hand, recorded a 2% yearly increase in its demand for fertilizers as the crop areas of the country increases by almost 400,000 hectares yearly particularly in South Wales.

• In Vietnam, imports have raised the bid to $435/MT for prilled urea

 

Fertilizer prices have also been bolstered by higher input costs. The cost for phosphates raw material costs, particularly sulfur and ammonia, have increased sharply due to COVID-19 restrictions on transport that caused limited input supplies but higher demand. Urea feedstock costs have also risen, including natural gas prices which jumped in early 2021 due to unusually cold weather. 

 

An increase in the freight cost for the transport of fertilizers has been also recorded. Chinese suppliers are also expecting a 30% tax on fertilizers once the Chinese government will impose relative export taxes.

 


 
How does FPA address the proliferation of illegitimate online sellers and distribution of illegal fertilizer and pesticide products?
 
The FPA is currently coordinating with the Department of Trade and Industry and other regulatory agencies to come up with a joint order to regulate the online selling of such agricultural inputs in different online platforms. Likewise, the Agency has already coordinated with these online selling platforms and educated them on the need for products and handlers (sellers) to undergo registration and accreditation prior to engaging in such activity. The registration of products and accreditation of handlers by FPA assures the public of effective and safe agricultural inputs. FPA then continues to inform the public that patronizing unregistered products being distributed by illegitimate handlers would expose them to the health and environmental hazards of fake and ineffective products and loss of income. The public is also advised to avoid products that are smuggled, underweight, expired, and does not conform with standards.
 
To encourage the wide dissemination of such campaign, the FPA seeks the cooperation from industry stakeholders including dealer’s associations or cooperatives. The FPA Field Units shall also integrate these reminders in their conduct of information, education, and communication (IEC) campaigns.
 
The public may report unscrupulous sellers and unregistered products being distributed to any of the FPA Field Units through email and telephone numbers listed on the FPA website. 
 
 

  

Does FPA control or regulate the prices of fertilizers and pesticides? How does the FPA address the high cost of fertilizer?

 

The implementation of the 1986 Trade Liberalization Act imposed for the removal of quantitative restrictions for fertilizer. As a result, the FPA discontinued the issuance of import permits for fertilizer and its price-setting function.

 

The Agriculture and Fisheries Modernization Act (AFMA) or Republic Act No. 7716 further allowed the duty-free importation of fertilizer enterprises engaged in agriculture. The law also grants tariff exemptions to agricultural enterprises such as farmers, cooperatives, organizations for imported agricultural inputs pursuant to Executive Order Nos. 133 and 376.

 

Similarly, Section 109 (B) of the National Internal Revenue Code of 1997 exempts fertilizer subsidiaries from payment of the 12% Value-Added Tax (VAT). Availment of the tax exemption requires fertilizer industry stakeholders to apply first for VAT Exempt Certificate from FPA.

 

To encourage fair market competition, the FPA fast tracks the registration of fertilizer and pesticide products so that more brands/products shall be available in the market.The agency monitors the prices of fertilizers and pesticides across different locations nationwide and submit weekly monitoring reports to the Department of Agriculture Bantay Presyo Task Force.

 

The agency also continues to conduct information and education campaign on the safe and judicious use of fertilizers and pesticides to help farmers avoid income losses due to their excessive and improper application of these inputs. The FPA constantly reminds the farmers to avoid using unregistered and smuggled products from unauthorized distributors.

 


 

How does FPA help in addressing pest infestation such as Fall Army Worm (FAW), Coconut Scale insect and Mango Weevil?

 

The FPA has the mandate to assure the public of safe and adequate supply of fertilzers,pesticides and other agricultural chemicals through the issuance of licenses, registrations and permits. The FPA regularly issues the list of its registered fertilizer and pesticides categorized according to their appropriate application for specific pest, plant disease and crops. It can be used as reference/guide by the public and the farmers for crop protection and production.

 

Likewise, the agency coordinates with relevant industry stakeholders and government agencies like the DA Pest Suveillance Unit and the Bureau of Plant Industry (BPI) for the monitoring and control of such incidents.

 

The public may access the agency’s website http://fpa.da.gov.ph/ to know more about the FPA’s list of registered inputs for the control of pest infestations such as fall army worm (FAW) and coconut weevil.

 


 

Does FPA regulate organic fertilizers and pesticides and those intended for industrial use?

 

The Supreme Court Ruling in 2007 suggests that pesticides for urban/household use is not covered by FPA’s mandate, but it should be regulated by the Foods and Drugs Administration (FDA).

 

On the other hand, concerns regarding regulation of organic fertilizers and pesticides can be directed to the Bureau of Agriculture and Fisheries Standards based on Republic Act 10068 (Organic Agriculture Act of 2010) and its Implementing Rules and Regulations.

 

For cases that such products does not qualify per BAFS standards, the applicant may send the FPA some information regarding its specifications (brochures, MSDS, etc.) so that the agency may assess if it will require bioefficacy testing first (non-traditional) or if it can be directly registered (traditional).

 


 

What are the banned and restricted pesticides in the Philippines? What were the actions undertaken to ban hazardous pesticides such Endosulfan, Deltamethrin and Fipronil?

 

The FPA restricts and bans pesticides that exceeds the Maximum Residue Limit (MRL) or the maximum concentration of a pesticide residue permitted in or on agricultural commodity, or animal feed, through issuance of FPA Board Resolutions and FPA Circulars after consultations with various industry stakeholders and other government agencies. Certain pesticides to be registered by FPA should be within standard toxicity levels to protect the environment and public health. The FPA has the obligation to regularly monitor and enforce confiscation. More importantly, the agency informs and educates the public to avoid/discontinue the use of these inputs and to report incidences of their continous use and distribution to FPA.

 

The list of banned and restricted pesticides can be accessed at:

https://fpa.da.gov.ph/index.php/information-resources/pesticide-regulatory-data

 


 

What is the process and requirements for indiduals intending to engage in fertilizer and pesticide business?

 

Persons/entities who wish to engage in the fertilizer and pesticide business must secure a License to Operate (LTO) specific to their desired activity/ies (e.g. importer, distributor, manufacturer, dealer, etc.) from the Fertilizer and Pesticide Authority (FPA). Likewise, the products that they wish to import/manufacture/distribute must be registered (either by full registration, provisional registration, or third party authorization) with our Agency.

 

For further details, applicants may refer to the FPA Policies and Implementing Guidelines for Fertilizer and Pesticide for further details.

 

You may also refer to the list of requirements as well as the process flows per issuance at the link below: https://fpa.da.gov.ph/index.php/services

Whereas, the downloadable forms may be found at this link:
https://fpa.da.gov.ph/index.php/services/download-forms

 


 

What is the process and requirements for the application for fertilizer importation permit?

 

Any company that wishes to import fertilizers, must apply for License to Operate (LTO) as Importer along with their product's registration. Upon approval of both and actual importation of the product they may apply for a VAT exemption certificate which will be used at the Bureau of Customs. They may also apply for other licenses depending on the activities that they will conduct. So basically, that is the overview of the regulations that you need.


The set of requirements and the service process for the issuance of importer’s license include the following:

 

  • Duly accomplished and notarized Application Form [FPA-FRD-F03 or F04] with documentary stamp (1 original)
  • For:
      • Corporation/Partnership – SEC registration and Articles of Incorporation [must include "fertilizer" in the purpose] (1 photocopy)
      • Cooperative – CDA Registration (1 photocopy)
      • Single Proprietorship – certificate of business name registration with DTI (1 photocopy)
  • Distributorship Agreement/Certificate from Mother Company (1 photocopy)
  • Risk Appraisal Checklist for Warehouse/Store (1 original)

 

  • Filing Fee per activity (for New Applicants only) 

1. For Importer, Importer End-user, National Distributor, Area Distributor, Exporter, Indentor- PhP 1800


2. License Fee based on declared capitalization (for New and Renewal)

 

      • Over P5M Capitalization

1st Activity- PhP 8400

Succeeding Activities - PhP 4800

 

      • Over P1M to P5M Capitalization

1st Activity- PhP 5400

Succeeding Activities- PhP 3600

 

      • Over P500T to P1M Capitalization

1st Activity- PhP 3600

Succeeding Activities - PhP 1800

 

      • P500T & below Capitalization

1st Activity- PhP 1800

Succeeding Activities - PhP 850

 

 

The set of requirements and service process for the issuance VAT Exemption Certificate include the following:

 

• Duly accomplished and notarized Application Form [FPA-FRD-F06] with documentary stamp (1 original)
• Bill of Lading (1 photocopy)
• Commercial Invoice (1 photocopy)
• Packing List (1 photocopy)
• Active Certificate of Product Registration (CPR) (1 photocopy)
• Laboratory Analysis from a Third Party Laboratory taken from the country of origin prior to its shipment (1 photocopy)
• PNP Permit [for Nitrates only] (1 photocopy)
• Disposition report of previous importation [for nitrates only] (1 photocopy)
• Filing Fee: PhP 600

 

Moreover, before a company or individual may register their product, they should provide the FPA some information regarding its specifications (brochures, MSDS, etc.) so that the agency may assess if it will require bioefficacy testing first (non-traditional) or if it can be directly registered (traditional).

 

The applicant may refer to the FPA Fertilizer Policies and Implementing Guidelines for further details.

 


  

How can the public report unauthorized fertilizer and pesticide dealers and products?

 

The public may report unregistered/unlicensed fertilizer and pesticide dealers and distributors and unregistered products to the Field Operations Coordinating Unit at email This email address is being protected from spambots. You need JavaScript enabled to view it. or Telephone No. (02)8927-3647. Reports may include details regarding the name of product, name of distributor, location and date of incident and necessary photos.

  

The public may also directly visit the nearest FPA Provincial and Regional Offices and the Central Office to raise their complaints. The office directory can be accessed at https://fpa.da.gov.ph/index.php/about-us/directory

  

The FPA will be conducting validation of the report through field inspection, monitoring and enforcement activity.

 


 

How does the FPA serve its clients and stakeholders during this time of COVID-19 pandemic?

 

Pursuant to Civil Service Commission Memorandum Circular No. 10, s. 2020 and the and Department of Agriculture (DA) Department Order No. 12, s. 2020, the Fertilizer and Pesticide Authority is currently implementing Alternative Work Arrangements. Under this arrangement, a skeleton workforce is running our agency’s on-site operations, while other employees continue to deliver their outputs and services from home.

 

As a precautionary measure against the continuous spread of COVID-19, the FPA strongly encourages its clients and stakeholders to continue transacting with the agency through email, telephone, and social media.

 

When face-to-face interaction is extremely necessary, please secure an appointment with our officers before proceeding to our office to ensure that the person you intend to transact with is available on-site. The security guards on duty shall advise those without appointment to communicate with the concerned officer through telephone, e-mail, or other online platforms. As a safety protocol, visitors and clients are strongly advised to always wear their facemask and stay within the designated area for their transaction.

 

For inquiries and appointments, clients and stakeholders may contact the units in charge of the service they want to avail:

 

 

  • Fertilizer Regulations Division
      • Email: This email address is being protected from spambots. You need JavaScript enabled to view it.
      • Telephone: (02)8441-1601
  • Pesticide Regulations Division
      • Email: This email address is being protected from spambots. You need JavaScript enabled to view it.
      • Telephone: (02)8922-3368
  • Laboratory Services Division
      • Email: This email address is being protected from spambots. You need JavaScript enabled to view it.
      • Telephone: (02)8920-8449
  • Planning Management and Information Division
      • Email: This email address is being protected from spambots. You need JavaScript enabled to view it.
      • Telephone: (02)8920-8573
  • Office of the Executive Director
      • Email: This email address is being protected from spambots. You need JavaScript enabled to view it.
      • Telephone: (02)8426-1572

 


 

 

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