The Department of Agriculture (DA) has allocated P85 million in grants to help onion farmers cooperatives and associations deal with the price drops of the commodity, that is caused by oversupply.
The DA explained that their project seeks to “address the pressing needs” of onion farmers due to “overproduction” that resulted in the decline in farm-gate prices. Under the program, the beneficiaries of the financial grant shall be FCAs and their respective farmer-members in the regions of Central Luzon, and Mimaropa. Eligible cooperatives and associations may receive a maximum grant amount of P5 million, according to the DA.
Earlier this month, some onion farmers in Mindoro were forced to abandon or sell their produce at a loss as price of the commodity fell to P12 per kilogram to P15 per kilogram, which was below the breakeven cost of P18 per kilogram. The average price of onions last year was at P42 per kilogram, according to DA. The decline in farm-gate prices was a result of onion oversupply due to higher output driven by new players in the industry, the DA added.
[ P100 = €1.80 ]
Source: businessmirror.com.ph