Agriculture Secretary Francisco Tiu Laurel Jr. has authorized the importation of red and white onions at a minimal volume to prevent price and supply swings now that harvest has begun in some areas.
This importation will involve 3,000 metric tons (MT) of red onions and 1,000 MT of white onions, both of which are expected to arrive within the next two weeks, the DA secretary said in a statement on Thursday.
Laurel said this move is needed to ensure that the country will have sufficient buffer stock while waiting for local harvest to come in.
However, three farm groups opposed the importation, with one saying this would only dampen onion prices at farmgate.
Laurel said they want to avoid a repeat of the 2022 price swings where onions fetched as much as P700 per kg due to a supply shortage worsened by delayed imports.
“We will not risk a potential shortage that unscrupulous traders could exploit to drive up prices, as we saw in the past. We do not want a repeat of the 2022 crisis,” Laurel said.
DA cited data from the Bureau of Plant Industry (BPI) showing a monthly consumption of red onions is at 17,000 MT and white onions, 4,000 MT.
Prior to this, DA said that the inventory of red onions was expected to last until February when the new harvest season begin, due to last year’s bumper harvest.
As of mid-January, BPI reported that red onion at storage houses stood at 8,500 MT and the white variety 1,628 MT.
“While we were assured during our consultative meetings that there is still ample supply of onions, BPI recommended minimal imports to prevent major price spikes. Also, due to the typhoons that hit late last year and prevalence of pests and disease, this importation is meant to be a buffer for possible supply gaps. This move is a preemptive measure,” said Glenn Panganiban, BPI director.
Panganiban said current projections showed several tons of onion will be harvested this month and around 33,000 MT in March.
Based on available data from the Philippine Statistics Authority, the country’s total onion production in 2022 reached 241,030 MT in 2022, growing by 4.75 percent to 252,490 MT in 2023.
Meanwhile, 2024 figures showed local onion production hitting 264,320 MT, a 4.7 percent increase from the 2023 level.
Local agriculture stakeholders have all expressed fears that the importation may pull down farm gate prices of onion during the harvest season starting this month until April.
“It is surprising why prices are going up at this time when we had overproduction last year and buying prices were very low. At the same time, we are already entering the harvest months for onions,” said Raul Montemayor, Federation of Free Farmers national manager.
“Unfortunately, the DA typically resorts to imports every time there is a spike in prices, without studying why this is happening and preventing profiteering and price manipulation,” Montemayor said.
Danilo Fausto, Philippine Chamber of Agriculture and Food Inc. president,saw a possible onion supply shortage later this year but such import program should have been allowed after the harvest season.
“But I hope, they have waited for the harvest season until April to really see if there will be a shortage… Personally, next week, I will start to harvest and I think prices will go down because with the start of the harvest, supply will come in. If we allow imports at the same time with the harvest, prices will dampen,” Fausto said.
Meanwhile, Samahang Industriya ng Agrikultura (Sinag) said that the BPI has always been reliant on the importation of onions.
“Farmers have only delayed planting of onion due to the effects of typhoon Pepito that hit the country on the first week of November last year. Instead of the usual January to March peak harvest, it has only pushed back to February to April,” said Jayson Cainglet, Sinag executive director.
Based on DA’s monitoring of public markets in the National Capital Region, local red onion sold for P115 to P220 per kg on Wednesday while local white onion went for P120 to P140 per kg.
Imported white onion was selling for P80 to P160 per kg while the price of imported red onion is not available.
