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Agriculture

DA to inspect onion warehouses as prices soar past P200 per kilo

Dominique Nicole Flores - Philstar.com
DA to inspect onion warehouses as prices soar past P200 per kilo
Undated photo shows a box of red onions.
STAR / File

MANILA, Philippines — The Bureau of Plant Industry is set to inspect all onion warehouses nationwide this week for possible hoarding and price manipulation during peak harvest season.

In a statement on Monday, February 24, the Department of Agriculture (DA) said it directed the BPI to inspect warehouses to determine "whether newly harvested onions are being withheld from the market."

“Last Friday, I directed the BPI and its team to visit all the onion cold storage facilities across the country and inspect whether newly harvested onions are being kept there instead of being sold,” Agriculture Secretary Francisco Tiu Laurel Jr said.

If the agency finds stored onions in warehouses, however, Tiu Laurel said it would indicate hoarding to artificially drive up prices by creating the appearance of a supply shortage.

“If they are, that’s wrong. Onions are typically stored toward the middle or end of the harvest season, not at the start. This clearly points to price manipulation — it’s hoarding,” he said.

The BPI is expected to complete the inspection within four to seven days. 

Since onions are harvested in February and March, the DA said fresh supplies should reach the market to maintain stable prices. 

A BPI report earlier this month showed that onion stocks in warehouses were relatively low, with consumption nearly twice the available supply. 

Import to avoid price hikes. In response, the DA decided to import 4,000 metric tons of red and white onions. Tiu Laurel warned that without intervention, prices could spike like in 2022, when they soared to P700 per kilo due to a supply shortage and suspected trader exploitation.

The BPI projects this season’s harvest to yield 33,000 metric tons of onions by March, on top of early harvests done by farmers.

The DA also reminded retailers and traders that hoarding and price manipulation are illegal under Republic Act 12022, or the Anti-Agricultural Sabotage Act.

Those found guilty of hoarding, profiteering, smuggling or involvement in a cartel face life imprisonment and a fine five times the value of the agricultural or fishery products involved.

Farmers’ woes. Onion farmers have opposed the importation, arguing that locally harvested onions should be sold first before allowing imported stocks into the market. 

They suggest that imported onions, which can be stored in cold storage, should only be released once local supplies run out.

Despite already selling at prices two to three times lower than retail rates, farmers fear that imports could further drive down farmgate prices, potentially reducing their earnings.

RELATED: Onion farmers protest 'untimely' imports amid peak harvest

More than P200 per kilo

As of February 20, the DA’s price monitoring showed that local red onions in Metro Manila markets ranged from P140 to P240 per kilogram, while local white onions were priced at P90 to P150 per kilogram.

Imported white onions, meanwhile, were sold at P100 to P160 per kilogram, making local onions — especially red ones — more expensive.

A month ago, however, local red onions were priced lower at P110 to P180 per kilogram, about P30 to P60 cheaper than current prices. Local white onions saw slight changes, with prices then ranging from P120 to P140 per kilogram.

BUREAU OF PLANT INDUSTRY

DEPARTMENT OF AGRICULTURE

FOOD PRICE WATCH

ONIONS

RED ONIONS

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