Directing the Roll-Back of Fertilizer Prices and the Rationalization of the Fertilizer Industry

August 6, 1984

LETTER OF INSTRUCTIONS NO. 1419

DIRECTING THE ROLL-BACK OF FERTILIZER PRICES AND THE RATIONALIZATION OF THE FERTILIZER INDUSTRY

 

WHEREAS, recent increases in world market prices of fertilizer and successive adjustments in the exchange rate of the peso have resulted in a series of increases in prices of fertilizer sold to farmers; cADaIH

WHEREAS, as a result of these price increases farmers are expected to reduce their fertilizer usage levels, thereby having adverse effects on agricultural productivity;

WHEREAS, in order to stave off these anticipated reductions in fertilizer use, it is crucial to immediately provide farmers with fertilizer at the lowest possible cost;

NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines, by virtue of the power vested in me by law, do hereby order and instruct:

1) The Administrator of the Fertilizer and Pesticide Authority to implement the roll-back of fertilizer prices by the following magnitudes:

	Per Metric Ton	Per 50-kg. Bag
Urea	P285.00	P14.25
21-0-0	P105.00	P5.25
25-0-0	P105.00	P5.25
16-20-0	P422.00	P21.10
18-46-0	P766.00	P38.30
6-9-15-	P302.00	P15.10
6-10-4	P201.00	P10.05
12-12-12	P363.00	P18.15
14-14-14	P424.00	P21.20
0-18-0	P100.00	P5.00
0-0-60	P273.00	P13.65

2) The FPA to adopt a new pricing policy based on cost, efficiency in establishing the ex-warehouse prices of fertilizer;

3) The FPA to liberalize domestic distribution of fertilizer as soon as practicable.

4) The Minister of Finance to exempt from the 10% ad valorem tax all imports of fertilizer finished products, intermediates and raw materials and to reimburse the industry ad valorem tax payments made on fertilizer imports that are in transit or are in the companies' warehouses.

5) The Minister of Trade and Industry to head a Fertilizer Rationalization Committee that shall supervise the orderly rationalization of Planters Products, Inc.

The Committee shall composed of the following:

Minister of Trade and Industry — Chairman

Minister of Agriculture and Food — Member

Director-General, NEDA — Member

Recommendations of the Committee are to be submitted to the President not later than 90 days from date hereof. The various fertilizer companies are hereby enjoined to fully cooperate with the Committee;

6) The Minister of Agriculture and Food shall through the Ministry's extension force launch an information campaign for the continued an deficient use of fertilizer. acAESC

DONE in the City of Manila, this 6th day of August, in the year of Our Lord, Nineteen Hundred and Eighty-Four.