Holiday red onion prices draw scrutiny

The Department of Agriculture-Bureau of Plant Industry (DA-BPI) is investigating a significant lag in the use of red onion import permits, a discrepancy officials believe is contributing to retail prices soaring above P300 per kilogram ahead of the holiday season.

Agriculture Secretary Francisco Tiu Laurel Jr. announced Thursday that the DA is probing why permits for red onions are being used much slower than those for yellow onions. The situation has raised concerns among vegetable vendors and consumers about a tight supply, leading to speculation that some importers may be deliberately holding back shipments.

“We want to know the status of those import permits — if they plan to use them. If not, we will cancel the permits and award them to other importers to ensure sufficient domestic supply, especially at this time of year,” Laurel said.

He added that cancelled permits will be immediately redistributed to other importers, including the Food Terminal Inc., to fast-track importation and relieve the tight market. Landed costs for onions from China are estimated at approximately P60 per kilo.

BPI director Gerald Glenn Panganiban confirmed that intensified market monitoring is underway. Warehouse reports have shown low farm-gate and wholesale prices, conditions that are inconsistent with the sharp retail market spikes currently being observed.

The bureau is also coordinating with the DA Inspectorate and Enforcement Office and the Agribusiness and Marketing Assistance Service to track supply, ensure fair pricing and safeguard food security.

To recall, the DA previously issued Sanitary and Phytosanitary Import Clearances (SPSICs) for 69,040 metric tons (MT) of red onions and 42,261 MT of yellow onions.

However, usage data reveals a stark difference. While the BPI granted 1,202 SPSICs for red onions, only 192 of these permits, totaling 12,824 MT, have been consumed since September.

By contrast, from August through Nov. 20, importers used 443 permits covering 21,145 MT—most of which were for yellow onions. The gap is significant given that monthly demand for red onions runs around 17,000 MT, compared to 4,000 MT for yellow onions.

All SPSICs must be utilized by 15 January 2026, to prevent hoarding that could manipulate supply and to ensure imported onions do not coincide with the domestic harvest, which could depress local farm-gate prices.