Imported onions not pulling down local prices — DA

The Department of Agriculture (DA) on Sunday said imported stocks of red onions are not enough to bring down the prices of local red onions.

“The numbers show that current stocks from imports are not overwhelming the market but merely plugging a supply gap. That said, we are taking a closer look at why onion prices are falling at this time of the year, as claimed by farmers,” said Agriculture Secretary Francis Tiu Laurel Jr in a statement.

Prices of red onions in wet markets in Metro Manila are currently at P90 per kilogram.

The statement came after onion farmers in Nueva Ecija raised the alarm over plunging red onion prices on 13 February.

The complaint, sent via Messenger, warned that imported onions were piling up in cold storage facilities across Region III and dragging down farmgate prices.

Tiu Laurel said he immediately directed the Bureau of Plant Industry (BPI) to scrutinize the numbers and determine what measures must be imposed to ensure that farmers’ bottom line is not affected while consumers have an available and affordable supply.

“Within hours, the BPI turned to its data nerve center — the One-Stop Industry Revitalization and Information System — to verify the claim,” he said.

According to the DA chief, the dashboard painted a revealing picture, because as of 4:15 p.m. on 13 February, monitoring reports covering about 82 percent of cold storage warehouses showed 4,454.09 metric tons of red onion stocks and 5,271.15 MT of yellow onions, nearly all of the stocks imported.

At an average warehouse price of P30.36 per kilo for red onions, inventories are projected to last until 19 February for red onions and 15 March for yellow.

“At first glance, the figures suggest an oversupply. In context, however, they tell a different story — one that anticipates the seasonal uptick in local harvests expected to peak between March and April,” Tiu Laurel’s statement reads.

On the other hand, DA’s National Plant Quarantine Services Division reported that about 8,000 MT of red onions are covered by sanitary and phytosanitary import clearances valid until 15 February and must arrive before the local harvest peaks.

Assumptions made by BPI showed that even if all remaining shipments arrive within the month, imported red onion stocks would likely last only until 6 March, just as harvest starts to peak.

“However, old stocks held by private cold storage must also be accounted for, if any.

Beyond that date, the DA expects supply to improve with favorable weather conditions,” Tiu Laurel further stated.

Estimated local production from onion-producing municipalities shows that red onion production from January to March is at just 9,325.14 MT — roughly 18 percent of the 52,034.4 MT.

Outlying provinces known for traditional onion varieties may add to local supply availability to meet daily consumption, but are not expected to further dampen prices.

Furthermore, the supply for yellow onion which are used for commercial purposes, is quite low, projected at only 1,645.25 MT for the quarter.

Given the supply trend analysis, Tiu Laure urged farmers to maximize available cold storage provided by the DA to store their harvested onions to prolong shelf-life and better time their releases when market prices have improved to avoid flooding supply channels.

“The DA will also inspect cold storage facilities — particularly those it provided — to ensure adequate space and proper utilization for the benefit of local farmers,” he said.

The department had granted cold storage facilities, many of them in Central Luzon, to ensure availability even during lean season as well as to help extend the shelf life and stabilize prices — not to exacerbate supply swings.