Onion prices to drop, says farmers group

As the harvest season in February approaches, the farmgate price of onions is expected to decline, as projected by the Federation of Free Farmers Cooperatives, Inc.

According to the farmers' group, onions in most areas are priced at P50 to P60 per kilo.

"P60, that's okay, they still get it back. At the price level today, that's still high. In March and April, that will decrease with the number of people who planted," said FFFCI national manager Raul Montemayor.

"I think that's a break-even, P30 per kilo. Even at P60, that's ok. If that still falls during peak harvest, it's a problem for the farmers," he added, expressing worry about importations that may cause an onion surplus.

"Problem if imports come in before closure of importation. There will still be problems with supply; there is still too much,” Montemayor expressed. “You have nowhere to put in new produce."

The Department of Agriculture earlier announced a temporary import ban on onions until May, which may be extended to July depending on whether the domestic harvest will be sufficient to meet local demand.

This is following the agency’s forecast of a supply glut due to the rise in domestic harvest and the delayed arrival of imported onions in the first weeks of January.

Moreover, the Philippine Chamber of Agriculture and Food Inc. also anticipates an influx after an additional 40 percent of the land area was dedicated to onion farming, adding that a harvest glut is at hand as the armyworm infestation in some areas of Central Luzon is likely to damage only around five percent of standing crops.

Based on DA's Bantay Presyo on Friday, the local red onion retail price in Metro Manila is P100 to P170 per kilo, while the imported red onion is P80 to P180 per kilo.