Law Summary
Functions and Powers of the Fertilizer and Pesticide Authority
- FPA is mandated to carry out related activities including securing credit facilities necessary for prompt importation.
- FPA is entrusted to manage import operations to ensure steady supply and distribution in the private sector.
Financial Support for Operational Activities
- The Minister of the Budget is instructed to immediately release P1.3 million from the Special Activities Fund.
- These funds cover operational and contingent expenses for implementing the importation and distribution measures.
Fertilizer Pricing and Capital Contribution
- A capital contribution fee of not less than P10.00 per bag of fertilizer is to be included in the fertilizer pricing formula.
- This capital contribution is collected on all domestic sales to raise sufficient capital to render Planters Products, Inc. (PPI) viable.
Establishment and Administration of the Planters Foundation Capital Fund
- The proceeds from capital contributions are used to create the Planters Foundation Capital Fund.
- The fund will be managed by the Fertilizer and Pesticide Authority and deposited in a special trust account as specified.
- Disbursement from the fund will adhere to agreements between the Government and creditor-banks of PPI.
Support and Cooperation from Government Agencies
- All government instrumentalities are directed to assist the FPA in effectively implementing the Letter of Instruction.
- The cooperation is aimed at ensuring uninterrupted fertilizer supply and distribution in the private sector.
Background and Policy Considerations
- The government supports fertilizer supply through private sector companies and cooperatives.
- Acquisition of Esso fertilizer plant by fertilizer users led to creation of the Planters Foundation, Inc. to hold shares of PPI.
- The Letter represents coordinated efforts with creditor-banks and government to maintain fertilizer distribution.