DA eyes $1M study for urea plant

The government is moving to produce its own fertilizer as global price shocks continue to strain farm costs, with the Department of Agriculture (DA) planning a coal-to-urea facility in Semirara Island, Antique.

Agriculture officials said the proposed plant is intended to reduce the country’s reliance on imported inputs, a vulnerability highlighted by recent spikes in fertilizer prices linked to geopolitical tensions in the Middle East.

“We are planning to establish a manufacturing plant for fertilizer,” said DA Undersecretary for Operations Roger Navarro.

The project centers on coal-to-urea technology, which the DA sees as a long-term solution to stabilize supply and prices. Officials noted that the cost of urea has surged sharply in recent weeks, with a 50-kilo bag rising to about P2,600 from P1,700 following the 28 February airstrikes involving the United States, Israel, and Iran.

To advance the plan, the DA is seeking support from the Asian Development Bank (ABD) for a feasibility study. The agency said a $1-million grant has been approved in principle to assess the technical and financial viability of the facility.

If the study is completed by the third quarter, officials said construction could begin before the end of the year, with the plant potentially operational by 2027.

The initiative reflects a broader push to shield the agriculture sector from global supply disruptions by building domestic capacity for critical farm inputs.