The Philippines Department of Agriculture initiated a review of red onion stocks after farmers in Nueva Ecija reported declining farmgate prices. Agriculture Secretary Francisco P. Tiu Laurel Jr. directed the Bureau of Plant Industry to verify inventory levels and assess whether intervention is required to balance farmer returns and consumer supply.
Farmers reported that imported onions were accumulating in cold storage facilities across Region III. The Bureau of Plant Industry used its One-Stop Industry Revitalization and Information System to review warehouse data. As of 4:15 p.m. on February 13, monitoring of around 82 per cent of cold storage facilities showed 4,454.09 metric tons of red onions and 5,271.15 metric tons of yellow onions in stock, largely imported. The average warehouse price for red onions was P30.36 (US$0.54) per kilogram.
Based on projected consumption, inventories are estimated to last until February 19 for red onions and March 15 for yellow onions. Around 8,000 metric tons of red onions are covered by sanitary and phytosanitary import clearances valid until February 15 and must arrive before local harvest volumes increase. Bureau estimates indicate that if all shipments arrive within February, imported red onion stocks may last until March 6, coinciding with the expected harvest peak.
Local red onion production from January to March is estimated at 9,325.14 metric tons, about 18 per cent of the annual projection of 52,034.4 metric tons. Yellow onion production for the quarter is projected at 1,645.25 metric tons. Additional supply from outlying provinces may support daily consumption.
"The numbers show that current stocks from imports are not overwhelming the market but merely plugging a supply gap," Tiu Laurel said. "That said, we are taking a closer look at why onion prices are falling at this time of the year, as claimed by farmers."
The Department of Agriculture urged farmers to use available cold storage facilities to extend shelf life and manage market timing. The department stated that it will inspect cold storage units, including those it provided, to ensure proper use. These facilities were established to support supply continuity during lean periods and to stabilise prices.
Source: DA
