An umbrella of groups of agriculture stakeholders has sought a Senate investigation into the regional bidding being conducted by the Department of Agriculture for the purchase of fertilizer at P950 per bag, which is much higher than the prevailing retail price of only P880 per bag or P70 more.
In a January 25, 2021 letter to Senator Francis Pangilinan, vice chairman of the Senate Committee on Agriculture, Rosendo So, chairman of the Samahang Industriya ng Agrikultura, said they again received many complaints from rice farmers questioning the propriety of the DA’s regional bidding for the procurement of urea fertilizer at P950 per bag when the prevailing retail price of the farm input was only averaging P880 per bag.
“If you would recall, we have similarly raised this concern last year when the negotiated centralized bidding price was P995/bag, when in fact the prevailing retail price then was only between P830-P850 (per bag),” So said, citing the receipts provided by farmers showing that the retail price of urea fertilizer was P880 per bag.
The SINAG official urged the senator to initiate an inquiry into the DA’s bidding for the purchase of fertilizers that was reverted back to the regional offices last December 2020, after the department previously adopted the centralized bidding system last year purportedly to make the bidding more transparent and aboveboard.
“We are also wondering why the negotiated bidding was reverted to regional bodies when the claim for centralized bidding last year by the DA was to make the bidding transparent and aboveboard,” So said.
“We are hoping that the Senate, thru your office, can shed light on these matters for the sake of our rice farmers and their families.”
Last year, SINAG also called for a legislative inquiry into the alleged overpriced fertilizer supply contracts that was part of a P5.69-billion emergency procurement to help farmers weather the impact of the COVID-19 pandemic.
The alliance of agricultural stakeholders questioned the Department of Agriculture’s approval of a reference price that was higher by at least P150 than the prevailing market prices for urea fertilizer.
“The supply contracts are grossly disadvantageous to the government. Taxpayers’ money have gone down the drain because of these overpriced urea fertilizer purchases. The DA could have done better if they just bought directly from retail outlets where prices are lower instead of bidding out these contracts,” So then said.
In May last year, the DA purchased P1.8 billion worth of urea fertilizer at an approved budget cost of P1,000 per bag from two suppliers intended for distribution for Central Luzon, Calabarzon, Western Visayas and Central Visayas.