THE country’s infrastructure constraints have been causing inefficiencies in fertilizer prices nationwide, which in turn, have made some agricultural products more expensive than others, thus contributing to the unstable prices of food items.
This is according to a study released by the state-owned think tank Philippine Institute for Development Studies (PIDS).
Titled "The Role of Mineral Fertilizers in Transforming Philippine Agriculture,” the study, prepared by PIDS Senior Research Fellow Roehlano M. Briones said infrastructure problems have made fertilizer prices expensive in some regions and cheaper in others.
The uneven pricing of fertilizer has also affected farm gate prices, making some agricultural products more expensive than others, contributing to the unstable prices of food items.
"A more serious challenge is the persistence of apparent inefficiencies in fertilizer marketing, as seen in the large discrepancies in pricing across adjacent regions for the same product. The fact that markets are competitive does not preclude inefficiencies in the fertilizer-supply chain at least in some areas, owing to poor transport infrastructure, weak logistics systems and low investments,” Briones said.
Data showed that across the country, retail prices of fertilizer based on the Dealer’s price index vary widely. Relative to the national average, the cheapest fertilizers are found in the Ilocos, Cagayan Valley (in the north); Western Visayas (central) and Davao Region (south).
The most expensive fertilizers are in the Autonomous Region in Muslim Mindanao and Eastern Visayas– which also happen to be among the poorest regions of the country.
Infrastructure problems cause erratic fertilizer, food prices
