The Philippine Department of Agriculture (DA) said that the planned intergovernmental agreement on fertilizer procurement for rice farmers will be completed next month.

The agency said that the Philippine government plans to complete all requirements by January, so as to supply before rice planting starts in March. De Mesa,

DA's assistant secretary in charge of operations, said: "We are discussing with possible sources in order to formulate the budget for next year in time. We are considering all countries, because the President's order is to use as cheaply as possible. At present, the price of urea fertilizer is 2500 pesos per bag, but we may get 1800 pesos or lower. We also hope to get this price as soon as possible to ensure the transaction and price."

De Mesa said that the government had not yet decided on the quantity and type of fertilizer.

The Philippines sees Indonesia, China and Russia as possible sources.

De Mesa said that according to the government procurement, fertilizer supply can be provided to rice farmers free of charge, and is likely to be provided to those producers who benefit from the 6600 peso worth of fertilizer coupons issued by the government previously.

DA said that part of the fund for fertilizer procurement will come from the rice budget allocation of 13 billion pesos next year.

After observing that the increase in world market prices has reduced the use of producers, the government has increased its support for fertilizer to rice farmers.

The low use of chemical fertilizer is considered to be the reason why the country's palay production this year may be flat or lower than the record harvest of 19.96 million tons last year.