The Department of Agriculture–Bureau of Plant Industry (DA-BPI) has directed onion importers to explain the slow use of permits issued for red onion shipments. Officials report that utilisation rates for red onion clearances are considerably lower than for yellow onions, contributing to tight supply and higher retail prices.
Vegetable vendors report red onion prices above US$5.30 per kilo (P300 per kilo), driven by limited availability ahead of the holiday period, when demand typically increases.
Agriculture Secretary Francisco P. Tiu Laurel Jr. said the agency is assessing the status of unused permits. "We want to know the status of those import permits, if they plan to use them. If not, we will cancel the permits and award them to other importers to ensure sufficient domestic supply, especially at this time of year," he said. He added that the directive aligns with instructions from President Ferdinand Marcos Jr. to maintain adequate supply and stabilise prices.
Unused permits will be cancelled and redistributed to other importers, including Food Terminal Inc., to accelerate shipments aimed at reducing supply pressure. The landed cost of onions imported from China is about US$1.06 per kilo (P60 per kilo).
The DA earlier issued Sanitary and Phytosanitary Import Clearances (SPSICs) covering 69,040 metric tons of red onions and 42,261 metric tons of yellow onions. To date, the BPI has issued 1,202 SPSICs for red onions and 751 for yellow onions.
Utilisation data from August to November 20 shows that 443 permits for 21,145 metric tons have been used, mostly for yellow onions. In contrast, only 192 red onion SPSICs have been utilised, covering 12,824 metric tons imported since September. All SPSICs must be used by January 15, 2026, a deadline intended to prevent stockpiling of permits and to ensure imports do not overlap with domestic harvest periods, which could lower farm-gate prices.
Monthly demand stands at around 4,000 metric tons for yellow onions and 17,000 metric tons for red onions.
BPI Director Gerald Glenn Panganiban said market monitoring has been intensified. He noted that warehouse data shows low farm-gate and wholesale prices, conditions that do not align with the elevated levels seen in retail markets. The BPI is working with the DA Inspectorate and Enforcement Office and the Agribusiness and Marketing Assistance Service to monitor supply flows, pricing, and food safety in the market.
Source: DA
