FTI, DA work to stabilize onion supply

The Department of Agriculture (DA) has moved early this harvest season to prevent sharp drops in onion prices, which have historically affected farmers’ income and planting decisions.

DA Secretary Francisco P. Tiu Laurel Jr. said state-run Food Terminals Inc. (FTI) has been instructed to begin purchasing onions directly from growers to maintain stable farmgate prices.

Teams have already been deployed to Nueva Ecija, the nation’s largest onion-producing province, to secure cold storage facilities. “They’ve secured space for 50,000 28-kilo bags, and we can expand that if needed,” Tiu Laurel said, describing the move as a proactive measure ahead of peak harvest.

Nueva Ecija produces over half of the country’s onions, with Bongabon contributing roughly 15 percent of national output. Given the province’s central role in supply, price fluctuations there often ripple through the market.

FTI is also monitoring other producing areas, including Occidental Mindoro, Pangasinan, and Cagayan Valley.

FTI President Joseph Lo visited Nueva Ecija to assess conditions and reported that farmgate prices have rebounded to as high as P45 per kilo.

The rise comes after DA assurances that imported red and white onion stocks are limited and expected to run low by the peak of the local harvest. “Our goal is to buy at prices that are fair to farmers, at levels that are enough to make onion farming profitable and sustain their planting intentions,” Lo said.

Historically, heavy imports arriving at the same time as peak harvests have pushed prices down, discouraging farmers and creating supply gaps later.

By acting as a buffer buyer and expanding cold storage, FTI aims to smooth out gluts and stabilize prices throughout the year.

The initial purchase of 50,000 bags, equivalent to roughly 1,400 metric tons, is intended to anchor farmgate prices and signal that the government is prepared to intervene early.

The intervention aligns with President Ferdinand Marcos Jr.’s directive to keep farmgate prices fair while supporting local farmers.

National onion consumption is estimated at around 550 metric tons per day, underscoring the importance of stable supply and pricing for both farmers and consumers.