Agriculture Secretary Francisco P. Tiu Laurel Jr. has directed state-run Food Terminals Inc. to begin procuring onions during the current harvest period to prevent downward pressure on farmgate prices.
A team has been deployed to Nueva Ecija to secure cold storage capacity. According to the secretary, space has been arranged for 50,000 28-kilo bags, equivalent to about 1,400 tons, with room for expansion. The intervention is intended to address price volatility typically seen during peak harvest.
In addition to Nueva Ecija, procurement may extend to Occidental Mindoro, Pangasinan, and Cagayan Valley. The agency is also developing cold storage infrastructure to extend shelf life and stabilise supply across the marketing year.
Nueva Ecija accounts for more than half of national onion production, with Bongabon contributing around 15 per cent of total output. The region, therefore, plays a central role in supply dynamics during harvest peaks.
FTI President Joseph Lo said farmgate prices in Nueva Ecija recently reached up to P45 per kilo (US$0.80 per kilo). The increase followed assurances from the Department of Agriculture that imported red and white onion stocks are limited and expected to be largely depleted by peak harvest.
"Our goal is to buy at prices that are fair to farmers, at levels that are enough to make onion farming profitable and sustain their planting intentions," Lo said.
Past production cycles saw heavy imports coincide with peak domestic harvests, leading to farmgate price declines and subsequent production adjustments. The current approach positions FTI as a buffer buyer, absorbing supply during high-volume periods and potentially releasing stocks later to manage availability.
National onion consumption is estimated at around 550 tons per day. The impact of the initial 50,000 bag procurement program on overall market balance remains to be determined, but the policy objective is to maintain price stability and support producer margins.
Source: DA
