The Department of Agriculture (DA) on Tuesday committed to pay the remaining P100 million it owes to fertilizer suppliers and merchants that it tapped for its subsidy program for rice farmers within the week.
“The Department of Agriculture assures fertilizer suppliers and merchants in Ilocos region that they will be paid in full within the week for the P100 million worth of fertilizers they provided to rice farmers via the voucher system under the agency’s rice program,” the agency said in a news statement.
DA Assistant Secretary for Regional Operations Arnel de Mesa said the delays in the payment to the fertilizer suppliers, which it described as a “minor setback,” was caused by a “glitch” in their system. De Mesa disclosed that the DA as of December 13 has paid a total of P22 million to fertilizer merchants and distributors.
“We apologize for the minor setback and inconvenience in our payment commitments to fertilizer merchants and distributors due to a glitch in our system, as a result of the additional documentary requirement,” he said.
“It was necessary to ensure that there is no duplication in the payout of vouchers to legitimate dealers, who participated in the DA’s rice fertilizer subsidy program that provided a P2,000 fertilizer voucher for farmers planting inbred rice varieties, and P3,000 for those planting hybrid rice,” he added.
DA Regional Field Office I Director Nestor Domenden said based on their investigation a sole fertilizer merchant who submitted incomplete requirements affected the payment for the voucher claims worth P98 million.
“The payment for the whole lot was supposedly ready last December 3, 2021, but was returned for further vetting because one of the merchants failed to follow the claims process,” Domenden explained.
Domenden added that they would meet with the concerned merchants within the week “to discuss the automated procedure in filing their payments to avoid future delays.”
Earlier, industry group Samahang Industriya ng Agrikultura said they will ask the office of Sen. Cynthia A. Villar, the chairperson of the Senate Committee on Agriculture and Food, to conduct a legislative inquiry regarding the alleged failure of the DA to pay P100 million worth of fertilizers to distributors and sellers in Region 1.
The group explained that the Association of Fertilizer and Pesticides, Distribution, Dealers and outlet of Pangasinan complained that they have been awaiting payment from the DA for the fertilizers they have completed delivering.
“The DA accredited fertilizer dealers can no longer serve the farmer-beneficiaries because the department has not yet paid them of their collectibles, which they badly needed in order to buy new supplies of fertilizer so they can continue to serve the other farmers who are also recipients of the DA’s fertilizer vouchers,” it said.
