The Samahang Industriya ng Agrikultura (SINAG) is questioning the alleged “overpriced” fertilizer procurement of the Department of Agriculture (DA). The DA procured millions of fertilizer bags last April in line with its food resiliency program which aims to increase food supply of the country amid the COVID-19 crisis.
The agency bought each bag of Urea fertilizer for Php 900.00 to Php 995.00 during the negotiated bidding but SINAG claimed the retail price of the said fertilizer is only at Php 850.00 or Php 145.00 cheaper than those procured by the DA.
If 1.8 million sacks of fertilizer have already been procured by the DA, the overspent funds may reach up to Php 200 million. SINAG has appealed to the Senate to probe the alleged fertilizer scam.
DA Secretary William Dar said they are prepared to face investigation and denied that the fertilizers were overpriced. It was based on the price monitoring of the Fertilizer and Pesticide Authority (FPA).
Based on the DA, the fertilizer national average retail prices for April 27 to May 1 was at Php 1,035.60, Php 1,037.53 for May 4 to 8, and Php 1,040.68 for May 11 to 15.
“They failed to consider that the contract price includes the cost of fertilizer, transportation cost, incidental services, and applicable taxes,” Dar elucidated. He added that all information regarding the procurement will be disclosed.
Senate Committee on Agriculture and Food Chairperson Cynthia Villar is set to file a resolution.
“Parang may overpriced [na] Php 140… DA is buying Php 5 billion worth. Dapat mas mura doon sa retail price (There appears to be an overpricing of Php 140… The DA is buying Php 5 billion worth. It must be lower than the retail price,” Villar explained.
