Fertilizer policy has been a critical factor in agricultural growth in the Philippines, where land-man ratio is low and declining and technological innovations are directed toward increasing yields per hectare. This paper analyzes government policies affecting fertilizer prices during the post-war period, with emphasis on the policies after 1973. Even with technologically up-to-date production plants, the Philippines does not have a comparative advantage in the domestic production of fertilizer, which involves a highly capital-intensive technology, and importation of basic raw materials. There has been no attempt to relate distribution of protection to efficiency of firms. Hence, a review of current fertilizer policies is called for.
