DA secures global fertilizer supply as oil tensions push prices higher
The Department of Agriculture is working to secure fertilizer supplies from major global producers as rising oil prices threaten to drive up farming costs and affect agricultural output in the coming months.
Agriculture Secretary Francisco P. Tiu Laurel Jr. said the government has begun negotiations with several countries, including China and Russia, to ensure stable deliveries of fertilizer, a key farm input.
During a recent meeting with the Chinese ambassador, Tiu Laurel said both sides reaffirmed their commitment to strengthening agricultural cooperation. He added that the Philippines is also engaging India and plans to open discussions with Belarus to diversify supply sources.
The move comes amid growing volatility in global markets. Oil prices surged following tensions involving the United States and Israel against Iran, as well as disruptions near the Strait of Hormuz—a critical corridor for global oil shipments. The spike has pushed up the cost of petroleum-based fertilizers worldwide.
Tiu Laurel warned that fertilizer prices are already climbing, with urea potentially reaching $800 per metric ton if tensions escalate further. While the country has secured more than 80 percent of its fertilizer needs through September, he noted that delivery risks are increasing. Suppliers that fail to meet commitments may face permanent blacklisting.
To reduce reliance on expensive inputs, the DA is also exploring alternative farming methods. China has offered to share techniques that reduce fertilizer use without compromising yields—an initiative Tiu Laurel described as “food diplomacy.”
Meanwhile, the agency is reviewing supply conditions for other key commodities and preparing contingency measures, including boosting local production and refining import strategies.
Despite global pressures, domestic food supply remains stable for now. However, prices may rise due to higher fuel and transport costs. To mitigate the impact, the government has intensified market monitoring and rolled out targeted assistance, including fuel subsidies for farmers and fisherfolk.
The government is also finalizing a legal review of a proposed price cap of P50 per kilo on imported rice to prevent excessive pricing. Locally produced rice will be exempted to protect farmers and sustain production incentives.
NPO News Team | DA Press Office - PR
