“Overprice of P271 million,” farmers claim. “PH saved P2.2 billion,” DA counterclaims. Difference: Almost P2 billion in claim and counterclaim – are they based on the same givens?
No!
Forewarned is forearmed: Figures don’t lie, but liars will figure!
Here’s the Farmers’ Story.
On Wednesday, 10 June 2020, Inquirer.net ran the report by Gabriel Pabico Lalu, “Farmers Claim Fertilizers Given As Part Of COVID-19 Aid Are Overpriced[1].” Mr Lalu quoted farmers William Laureta of Tarlac and Ernesto Agustin Domingo of Nueva Ecija as saying that the Department of Agriculture, DA, bought 1.811 million bags of urea fertilizer for a total cost of P1.8 million at P1,000/bag. The farmers claimed that the retail price of urea was only P850/bag, or a total overprice of P271 Million. (Above, superimposed image of farmers applying urea in the field, from Farming-Fertilizer[2].)
Here’s the DA Story:
Secretary of Agriculture William Dar says, in a memorandum to President Rodrigo Roa Duterte, thru Executive Secretary Salvador Medialdea, that in fact the DA bought 5.69 million bags of urea at P1,000/bag and, by my (FAH’s) computation, saved the government at least P2.2 Billion!
As Carroll D Wright had said, “Figures don’t lie, but liars will figure.” I have known for 13 years William Dar personally, and I would never associate him with any shenanigan like overpricing a fertilizer purchase where even 10 dollars or pesos are involved. I was international consulting writer (work from home) of the International Crops Research Institute for the Semi-Arid Tropics, ICRISAT, based in India, where he was the Director General of ICRISAT for 15 years, from 2000 to 2014, when he retired. Among other things, the Indians knew a man of honor when they saw one!
Now, how do I explain the huge difference in the figures given?
The fact was that in December 2019, the average monthly dealers’ prices of urea, according to the Fertilizer & Pesticide Authority, were as follows: P1,054.88 (Luzon), P1,087.17 (Visayas) and P1,014.60 (Mindanao). What did the DA do? In his Memo to President Duterte, Secretary Dar said:
Setting the reference price at P1,000.00 per 50 kg bag of urea, the (Approved Budget for the Contract), ABC of P35,691,477,000.00, was set for the procurement of 5,691,477 bags of urea. which was presented during the pre-bid conference on 28 April 2020.
In a note, Secretary Dar told this reporter (FAH) that “in previous years, the DA regions were purchasing urea fertilizers at an average of P1,400 per bag.” That is to say, this year, the DA saved an average of P400 per bag; I say, with a total of 5,691,477 bags times P400 per bag, the DA saved the PH government a total of P2,276,590,800!
Now, to review the differing figures, with P1,000/bag of urea:
DA purchased 1,811,000 bags, P1.8 billion total – Farmers William Laureta & Ernesto Agustin Domingo
DA purchased 5,691,477 bags, P5.6 billion total – Secretary of Agriculture William Dar
Where in the world did Farmers Laureta & Domingo get their figures?! Your wild guess is as wild as mine!@517
[1]https://newsinfo.inquirer.net/1289580/farmers-claim-fertilizers-part-of-covid-19-assistance-overpriced
[2]http://scarlettxu1.blogspot.com/2013/07/urea-is-king-of-fertilizers.html
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