DA allots P100 million for onion industry

MANILA, Philippines — The Department of Agriculture (DA) has allotted over P100 million to support the country’s onion industry.

The amount will cover interventions aimed at improving the country’s productivity towards self-sufficiency and ensuring onion farmers’ cooperatives and associations (FCAs) have ready markets for their produce.

Based on the Philippine Onion Industry Roadmap 2021–2025, the DA said the country needs to increase production from 229,539 metric tons (MT) to 279,270 MT in five years by increasing area planted and productivity.

For this year, the DA High Value Crops Development Program (HVCDP) allocated P47.48 million for production support services such as the provision of seeds or seedlings and fertilizers for areas planted with onion.

Around P35.67 million has been set aside for onion production and post-harvest facilities, irrigation network services, and farm production machinery and equipment.

As of Aug. 28, the DA-Agribusiness and Marketing Assistance Service (AMAS) matched different farmers cooperatives and associations (FCAs) with big buyers for the delivery of about 82,442 kilograms of onions (red, yellow/white) and shallots worth P3.228 million since February this year.

To address the challenges and concerns in the local onion industry, the DA holds regular consultations and dialogues with the stakeholders, including farmer-leaders, traders, and buyers, among others. It has also been promoting demand-driven production.

Last year, the DA-AMAS – through the Enhanced Kadiwa Financial Grant – awarded P6.1 million worth of delivery trucks and hauling vans to FCAs involved in onion production and marketing.

The grant benefitted the FCAs and at least 6,000 farmer-members with access to 60 new markets for their produce.

The country’s major onion producing regions are Central Luzon, Ilocos, Mimaropa, and Cagayan Valley, but the DA considers partnering with farmers in the Visayas and Mindanao regions to expand local onion production and assist them with market linkage activities.

The onion planting schedule starts in September at the earliest up to March, while harvesting starts by December until June. Thus, higher onion prices can be observed by July to November.

Based on the Onion Roadmap, which is a product of multi-stakeholder consultations, the proposed key interventions along the value chain are production clustering, seed support system, infrastructure support, input subsidies, postharvest support facilities, and systemic interventions like consolidation centers, auction markets, and regulatory services.

The roadmap also envisions a modern, competitive, and profitable onion industry providing high quality, safe, affordable, and sustainable supply of onion to meet increasing domestic and export demand.

Last month, the DA admitted the country was facing a shortage of white onions as some fast-food chains and vendors announced they were experiencing supply issues, which drove prices to steeply increase.