Philphos wants tariff on imported fertilizers raised to 20%

The Philippine Phosphate Fertilizer Corp. (Philphos) will ask the government to increase the tariff on fertilizers from its current level of just three percent to 20 percent.

This was revealed over the weekend by Philphos chairman and president Jose Ch. Alvarez who is also urging government to check the dumping of fertilizers into the country by China and Korea.

According to Alvarez, imported fertilizers are being dumped into the country at P110,000 per metric ton, well below the actual cost of P125,000 per metric ton.

Alvarez said, Philphos is seeking government help as the company, needs time to recover.

Alvarez acquired 45 percent of Philphos last year after he won the government’s share in the fertilizer firm through a public bidding.

Government still has a five percent share in Philphos while the government of Nauru owns the other 50 percent.

Philphos was one of 10 industrial projects pushed by former Trade and Industry Secretary Roberto V. Ongpin and which was supposed to make the Philippines an industrial leader in the region.

Philphos was a joint venture of the Philippine government and the Republic of Nauru. Nauru provides the raw phosphate fertilizer which Philphos processes.

In recent years Philphos had become a drain on the government, forcing it to sell its stake.

The dumping of imported fertilizers from China and Korea has not only adversely affected Philphos but also its competitor, Atlas Fertilizer Corp. which is owned by Anscor.