Billions of pesos lost due to outdated fertilizer

Billions of pesos in opportunity losses have been incurred through the years by the agriculture sector due to outdated and stringent regulations, which could still imperil the agricultural growth targets if these are not officially and finally liberalized

At the crux of the controversy is the Fertilizer and Pesticide Authority (FPA), which has for some decades got allegedly stuck with regulatory work, restricting the entry of new fertilizer grades. Its regulatory functions are now perceived to be no longer consistent with the Department of Agriculture’s (DA) overall policy directions and programs.

FPA came under fire during a recent conference of the Fertilizer Industry Association of the Philippines (FIAP) but was forced to toe the line when Agriculture Secretary Leonardo Q. Montemayor himself issued a policy statement liberalizing fertilizer grades and calling for a review of FPA’s charter under Presidential Decree 1144. Specific amendments or perhaps simple memorandum circulars are needed.

Whatever it is, the FPA and industry people blame each other over the issue. FPA represented by Norlito Gicana, Phd., blamed back the industry claiming there are technically no grade restrictions, but private firms are simply hesitant to venture and risk themselves into new grades as farmers may not yet buy them.

Gicana finally declared there is now no more need for an efficacy test for new grades, provided the same ingredients are used. For new ingredients, only one crop cycle test is required. His pronouncements, however, became tricky when he added that the efficiency claims of industry on their new grades must be backed up by studies.

What if a cheaper fertilizer grade used in wheat, for instance, is used in rice. Will it still qualify provided the same ingredients are used but with different formulations. Gicana was pinned down to say yes, but was not too categorical. Industry people want an official order or proclamation.

While FPA has now softened, past practices were detested strongly. FIAP president Raul V. Aristorenas Jr. said the industry has long complained about the "experimental use permit," a fertilizer grade requirement which was not only costly but almost impossible then to obtain.

"Until now, we still have the same 5-7 grades from 30 years back. Thailand has now 40 fertilizer grades," Aristorenas said. Antonio M. Kosca Jr. of Atlas Fertilizer added that "Japan has even over 1,000 grades, each one more crop and soil specific."

"How come feed millers or tobacco firms can make their own formulations and blends without prior clearance. How come we couldn’t do the same for fertilizers through specific bulk blending technologies that have been in existence for the last 30 years," Aristorenas said.

Even Dr. Severino Magat, a top agricultural scientist now with the Philippine Coconut Authority has complained that he has developed many fertilizer grades for coconuts for more than a decade of research, only to be told he has to apply for separate efficacy tests with the FPA, which is somewhat like re-inventing the wheel. His formulations definitely use new ingredients.

Roger N. Concepcion, Phd., director of the Bureau of Soils and Water Management (BSWM), told the PAJ News and Features that the "traditional grades recommended by FPA for the last 30 years are no longer effective and scientific.

"These are shotgun-type of fertilizers, which are causing more harm than benefits. They have overdosed the soil with its ingredients, while depleting the soil of nutrients that need to be replenished with other fertilizer grades, he explained.

"Our soils are now so toxic after decades of using the same fertilizers that even an additional application along with a complete package of inputs like irrigation , certified seeds and other inputs, will not even improve yields," he said.

"The resulting nutrient imbalance has caused yields to plateau at the national average of 3.2 metric tons per hectare (64 cavans)," says Concepcion, the man behind DA’s Balanced Fertilization Strategy (BFS).

But with balanced fertilization, Concepcion reveals that yield can actually more than double to 6-7 metric tons per hectare on irrigated lands. In one test group conducted by the BSWM, a yield of as much as 7.2 MT per hectare was achieved.

Balanced fertilization call for a specific mixture of organic and chemical fertilizers to attain the desired nutrient balance that enables farmers to achieve higher yields. In fact, balanced fertilization by itself is a deregulated formulation process, whereby farmers themselves can make their own experiments and mixing for special crops, soil types, water availability conditions and other factors.

Actual losses and opportunity losses that are incurred only because of FPA’s stringent regulations are so tremendous. For one, the billions of pesos to be sunk into agriculture by the government will go down the drain as yield will still be flat.

Given the country’s palay production of over 12 million metric tons, a 20-percent additional yield alone is about 2.4 million tons equivalent to over P20 billion based on the National Food Authority’s support price.

This P20 billion in additional yields for one year may possibly turn into an opportunity loss if all the support systems, including a more liberalized fertilizer grading program, are not put in place. Imagine the opportunity losses through the past three decades. – PAJ News & Features