The Department of Agriculture (DA) has set aside over P94 million to boost onion production in the Philippines amid concerns about oversupply and depressed prices.
DA Secretary Francisco “Kiko” Tiu Laurel Jr. has temporarily suspended onion importation to address the surplus in the market. In a statement released on Friday, Jan. 19, the agriculture department announced that Laurel has “in principle” agreed to halt onion importation until May, with the possibility of extending the suspension until July, as long as the domestic harvest can meet local demand.
The decision comes after a meeting between Laurel and members of the Philippine Chamber of Agriculture and Food Inc. (PCAFI) to address the increase in domestic onion supply caused by a fresh harvest and the arrival of additional supplies imported in December. Shipment delays resulted in the arrival of 99 tons of onion imported in December between January 1 and 15.
The PCAFI informed Laurel that they expect a supply surplus since an additional 40 percent of the land area was planted with onions. Consequently, farm gate pricing for onions has dropped to between P50 and P70 per kilogram due to the increased supply. Prices may even drop lower in February when additional onions are harvested.
The DA noted that in some areas in Nueva Ecija, which accounts for 97 percent of onion production in Luzon, prices have dropped to as low as P20 a kilo. Luzon produces 65 percent of local onion supply.
This shift in the market comes after onion prices soared to a record high of P720 per kilo in December 2022 due to scarce supply.
To address the issue, the DA is allocating funds to ramp up production and stabilize the market for onions. The decision to temporarily suspend imports and focus on domestic production aims to prevent further price depreciation and ensure that local farmers can earn a decent income from their harvest.
