The Department of Agriculture (DA) is moving to lock in fertilizer supplies from key global producers as oil-driven price spikes threaten farm output later this year. Agriculture Secretary Francisco P. Tiu Laurel Jr. said Manila has opened talks with several countries, including China and Russia, to ensure steady deliveries of the critical farm input.
The DA chief said that during his meeting with the Chinese ambassador on Tuesday, the diplomat assured the agricultural cooperation between the two countries.
Speaking to reporters at the Agora Market in San Juan City, where he accompanied President Ferdinand Marcos Jr. during a supply and price inspection on Wednesday, Tiu Laurel sai the DA has “also engaged India and Russia, and will be talking to Belarus to secure supply moving forward” The urgency reflects mounting pressure in global markets.
Oil prices surged following recent strikes involving the United States and Israel against Iran, and Tehran’s response, including disruptions around the Strait of Hormuz, a vital shipping route for crude oil and petroleum products from the Middle East. The ripple effect has driven up the cost of petroleum-based fertilizers.
Tiu Laurel said global fertilizer prices have already risen, with Urea possibly hitting USD800 per metric ton if Middle East tension escalates further. Although the DA has secured more than 80 percent of requirements through September, he warned that delivery risks are rising amid surging prices. Suppliers that fail to meet obligations could face permanent blacklisting, he said.
Beyond supply, the DA is also exploring ways to reduce dependence on costly inputs. China has offered to share farming techniques that cut fertilizer use without sacrificing yields, an approach Tiu Laurel described as “food diplomacy.”
At the same time, the DA is reviewing the supply outlook for other key commodities and preparing contingency measures, including boosting local production and fine-tuning import strategies. For now, domestic food supply remains adequate, although prices are expected to rise due to higher logistics and transport costs.
To cushion the impact, the government has ramped up market monitoring and begun rolling out targeted financial assistance, including fuel subsidies for farmers and fisherfolk. The government is also finalizing a legal review on a proposed price cap of P50 per kilo for imported rice, aimed at curbing profiteering.
Tiu Laurel emphasized that locally produced rice will be exempt to protect farmgate prices and avoid discouraging planting.
