The Department of Agriculture is exploring supply options as the prices of local chili, or siling labuyo, continue to soar in regional markets with the onset of the “ber” months.
According to DA’s Bantay Presyo (price watch), the maximum retail price of chili in Metro Manila has reached PHP 800 per kilogram as of September 3.
This marked a steep increase from the P550/kg. peak price recorded on Aug. 15 and P350/kg. on July 25.
Asked whether cheaper chili could soon be sold at the Kadiwa ng Pangulo outlets, Agriculture Secretary Francisco Tiu Laurel Jr. said the DA would be able to put chili in KNP stores only upon securing additional supply sources.
“Maybe… but wala rin supply masyado (there’s not much supply). We are looking at supply options,” he told the Philippine News Agency in a Viber message.
Tiu Laurel explained that successive weather disturbances have significantly reduced production, pushing prices higher.
“Production is down talaga (really down) due to rains and floods,” he said.
A report on crop production shared with the PNA said the chili price surge has been “primarily driven” by the rainy season, which has created a “supply gap” in major producing regions.
Supply reductions were reported in Ilocos, Central Luzon, and Bicol due to continuous rains.
In Ilocos and Central Luzon, fewer farmers have been planting chili, while in Bicol, persistent rainfall has hampered cultivation and reduced yields, the report added.
The same report underscored the need for investment in “protected cultivation technologies (rain shelters, greenhouses, and improved drainage), better crop scheduling, and supply chain interventions.”
DA spokesman and Assistant Secretary Arnel de Mesa, meanwhile, said greater investment in research and development—particularly in greenhouse technology—may help address the perennial problem of chili price spikes caused by its “seasonality.”
“R&D will greatly help, especially in off-season planting of chili and other solanaceous crops that are very vulnerable during the rainy season,” he told the PNA in a separate phone interview.
He explained that greenhouses could help prevent waterlogging in plantations, allowing chili production even during the off-season.
“Chili is very seasonal and does not thrive well during the wet season,” he said.
As of September 3, chili prices in the National Capital Region (NCR) ranged from P400 to P 800 per kilogram, with a prevailing price of P 700 per kilogram.
Aside from R&D, De Mesa said the DA has started research on alternative planting areas for chili during the off-season.
Currently, most chili supply comes from Cagayan Valley, Central Luzon, and Southern Tagalog.
“We will look into areas less affected by heavy rains, such as Mindanao and Visayas so that chili can be delivered to areas with high demand,” he said.
De Mesa stressed that ensuring a steady supply would be crucial during the “ber” months, given the growing demand for chili among consumers and restaurants leading up to the holidays.
Vegetables, fish prices are also up due to rains
Successive weather disturbances have also driven up the prices of vegetables and fish, contributing to a faster overall inflation rate in August, the DA said on September 5. (PNA)