DA secures fertilizer supply amid oil spike

The Department of Agriculture (DA) is racing to secure fertilizer supplies from major global producers as oil-driven price increases threaten to raise farming costs and disrupt output in the coming months.

Agriculture Secretary Francisco P. Tiu Laurel Jr. said the government has opened negotiations with countries including China, India, and Russia, with plans to engage Belarus, to ensure steady access to fertilizers. “We have also engaged India and Russia, and will be talking to Belarus to secure supply moving forward,” he told reporters.

The move comes as global fertilizer prices climb alongside rising oil costs. Recent tensions in the Middle East, including strikes involving the United States and Israel against Iran and disruptions near the Strait of Hormuz, have pushed up petroleum prices, driving higher costs for fertilizer production. Urea prices, Tiu Laurel said, could reach as high as $800 per metric ton if tensions escalate further.

While the DA has already secured more than 80 percent of the country’s fertilizer requirements through September, the agriculture chief warned of growing risks to delivery as prices surge. He added that suppliers failing to meet commitments may face permanent blacklisting.

Beyond securing imports, the DA is also looking to reduce reliance on expensive inputs. China has offered to share farming methods that lower fertilizer use without affecting yields, an approach Tiu Laurel described as “food diplomacy.”

The agency is also reviewing supply conditions for other key commodities and preparing contingency measures, including boosting local production and refining import strategies.

For now, domestic food supply remains sufficient, though higher transport and logistics costs are expected to push prices upward. To mitigate the impact, the government has expanded market monitoring and rolled out targeted support such as fuel subsidies for farmers and fisherfolk.

Meanwhile, authorities are finalizing a legal review of a proposed P50 per kilo price cap on imported rice to curb profiteering. Tiu Laurel said locally produced rice will be exempt to protect farmgate prices and sustain production incentives.