Department of Agriculture sets P120/kg onion price cap
THE DA warns that misdeclaring sensitive goods like onions and fish as processed food not only dodges strict inspections but also risks public health and hurts local producers.
Photograph courtesy of the Department of Agriculture
Beginning tomorrow, 1 December, the Department of Agriculture (DA) will begin implementing a P120 per kilo suggested retail price (SRP) for both red and white onions in an effort to rein in holiday-season price surges that have pushed retail costs to unusually high levels.
Agriculture Secretary Francisco P. Tiu Laurel Jr. said the price ceiling is intended to stabilize a market distorted by tight supply and aggressive markups. While recent delays in onion imports have slightly reduced available stock, he stressed that the situation does not justify the steep price spikes observed in Metro Manila and key provincial markets, where Agribusiness and Marketing Assistance Service (AMAS) monitoring showed retail prices climbing as high as P300 per kilo.
“There may be some tightness in supply, but that’s no excuse for runaway prices. At current market levels, it already smacks of profiteering,” Tiu Laurel said.
The DA noted that imported onions land in the Philippines at roughly P60 per kilo, meaning the P120 SRP still provides enough margin for importers, logistics players, and retailers. AMAS Director Junibert E. De Sagun added that retailers were generally open to the SRP during consultations, provided that supply is delivered to them at about P90 per kilo.
“At P120, everyone—from importers to logistics providers to retailers—still earns a decent profit,” Tiu Laurel noted.
To support the policy’s rollout, Food Terminal Inc. (FTI) committed to supplying imported onions at P90 per kilo on a cash-on-delivery basis. New shipments are expected within two weeks, setting the stage for stable distribution as demand rises ahead of Christmas.
Stakeholders, however, underscored the need for tighter monitoring of import arrivals and volumes to avoid market manipulation and ensure that local producers—already facing reduced planting areas and weather-related crop losses—are not adversely affected by sudden influxes. DA officials assured farmers and traders that any future adjustments to the SRP for locally grown onions will undergo further consultation.