Israel-Iran Conflict Threatens Fertilizer Prices
Albay 2nd district Rep. Joey Salceda, an economist and outgoing congressman, has warned that the ongoing Israel-Iran conflict could trigger a rise in local fertilizer prices. This increase might soon impact food costs across the Philippines. Salceda highlighted that approximately 66 percent of the country’s fertilizer imports are nitrogen-based, with urea being the primary type.
Qatar, a major supplier of these fertilizers, is situated just 510 miles from Iran. Given current tensions, reports suggest Iran might consider closing the Strait of Hormuz, a move that could disrupt Gulf shipping and therefore the supply chain. Such disruptions would likely push domestic fertilizer prices higher, Salceda explained.
Urgent Need for Budget Contingencies
In response to these risks, Salceda urged the Department of Agriculture (DA), Bureau of Plant Industry (BPI), and National Food Authority (NFA) to incorporate contingency logistics and buffer stock measures in their 2026 budget proposals. These agencies are preparing their budgets ahead of the 20th Congress session, which will prioritize the national budget’s passage.
Salceda emphasized that updating fertilizer sourcing strategies and allocating funds for logistics resilience are crucial steps. These efforts can help mitigate potential supply chain shocks caused by the escalating Israel-Iran conflict.
Preparing for Potential Supply Chain Disruptions
The Philippines’ reliance on nitrogen-based fertilizers, mostly imported from Gulf countries, makes it vulnerable to geopolitical tensions. With the threat of the Strait of Hormuz closure, the government must act swiftly. Salceda’s advice to include buffer stocks and logistical plans aims to secure agricultural inputs and stabilize food prices.
Furthermore, the collaboration among the DA, BPI, and NFA will be vital in strengthening the country’s food security. By anticipating these challenges early, the Philippines can better protect farmers and consumers from sudden price spikes.
For more news and updates on fertilizer prices and food security, visit Filipinokami.com.