The Department of Agriculture (DA) in the Philippines is seeking additional funding to support local vegetable production as inflation in the commodity group continues to accelerate. Rising vegetable prices have been identified as a key driver of higher overall inflation, which government officials link to weather disruptions affecting supply.
According to the Philippine Statistics Authority (PSA), inflation for vegetables, tubers, plantains, cooking bananas, and pulses rose to 19.4% in September, up from 10% in August. Leafy and stem vegetables, including broccoli, recorded an inflation of 16.8%, slightly lower than the 24.5% in August. Prices of other vegetables such as carrots and onions surged 25.6%, the fastest rate in two years.
In the National Capital Region (NCR), inflation was even higher. The vegetable group recorded 20.5%, leafy and stem vegetables 22.8%, and other vegetables 26.9%. The Bangko Sentral ng Pilipinas said higher vegetable prices caused by recent typhoons pushed food inflation higher, from 0.6% in August to 0.8% in September.
The DA reported that the combined effects of the southwest monsoon and Typhoons Mirasol, Nando, and Opong caused agricultural damage worth around US$85 million nationwide. About 60% of the losses were in the rice sector, while high-value crops, including vegetables, accounted for nearly 24%. Around 45,339 metric tons of vegetables, commercial crops, root crops, spices, legumes, and fruits were affected, representing an estimated value loss of US$20.4 million.
To stabilise supply and mitigate further price increases, Agriculture Secretary Francisco Tiu Laurel Jr. said he had approved the importation of carrots, broccoli, and onions. "I approved the importation of certain vegetables, carrots, broccoli, and onions, without announcing it publicly," he said.
Bureau of Customs data showed that 51 metric tons of fresh carrots worth about US$37,500 arrived from Australia in September. Between August and September, 16,000 metric tons of fresh yellow onions were imported at an average landed cost of US$0.42 per kilogram, while 598 metric tons of fresh red onions were imported at around US$0.40 per kilogram. Over the same period, 513 metric tons of broccoli entered the country at an average landed cost of about US$0.91 per kilogram.
Despite these imports, local vegetable prices remain elevated. As of October 8, carrots were priced at up to US$5.10 per kilogram, broccoli between US$2.60 and US$7.70, and red onions up to US$3.40 per kilogram. The DA warned that a decline in next year's budget allocation for the high-value crops program, which includes vegetables, could limit long-term efforts to stabilise supply.
Source: PhilstarGlobal
