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Fuel, Fertilizer Subsidies Pushed In Senate To Sustain Farm Output

Harvest is expected between August and September if production continues despite challenges.

Fuel, Fertilizer Subsidies Pushed In Senate To Sustain Farm Output

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The Senate is pushing for fuel and fertilizer subsidies to sustain farm production and prevent a potential decline in food supply in the coming months.

During a public hearing of the Senate Committee on Agriculture, Food and Agrarian Reform on the impact of rising oil prices on Wednesday, Senator Bam Aquino said rising input costs are affecting farmers’ capacity to plant, warning that delays in government support could lead to lower harvest and higher food prices.

“Kung hindi ho natin mabibigay ‘yung tulong na ‘yan, makikita natin tataas talaga ‘yung presyo ng bilihin sa palengke at ‘yun ‘yung ayaw natin makita (If we fail to provide this support, we will see prices in the market rise, and that is what we want to avoid),” Aquino said.

Department of Agriculture (DA) Undersecretary Asis Perez said the country currently produces about 78 percent of its rice requirement, but output could decline by at least 20 percent and possibly up to 50 percent if no intervention is made.

“That is the cost of not doing anything,” Perez said, referring to the projected drop in production.

He added higher fertilizer and fuel prices are already impacting farm inputs, particularly for the upcoming planting season from May to June, with harvest expected around August to September.

Perez said fertilizer prices increased shortly after global supply disruptions, while rising fuel costs continue to affect land preparation and transport operations.

To address this, Aquino urged the immediate rollout of subsidies for diesel, gasoline, and fertilizer to ensure farmers can continue planting during the critical months.

The DA estimates that about PHP37 billion is needed to support major crops, including rice, corn, and fisheries, for a three-month production cycle.

Aquino said around PHP200 billion in government assistance funds could be tapped to support farmers and fisherfolk.

“Ngayon na natin ‘to gamitin… para matulungan natin ang ating mga magsasaka at mangingisda (Let us use these funds now to help our farmers and fisherfolk),” he said.

Meanwhile, Department of Social Welfare and Development (DSWD) Undersecretary Aliah Dimaporo said existing assistance mechanisms can cover affected sectors, including farmers and fisherfolk.

“We respond to anyone in crisis that’s under our assistance for individuals in crisis situations,” Dimaporo said.

The Senate is continuing discussions with concerned agencies, including the Department of Finance, on how to mobilize available funds and ensure timely delivery of subsidies to sustain farm production and stabilize food prices. (PNA)