A Philippine Senate investigation has been proposed following a drop in onion prices in Nueva Ecija and Occidental Mindoro. Farmgate prices declined from ₱120–₱150 (US$2.15–US$2.70) per kilogram in January to about ₱30–₱40 (US$0.54–US$0.72) per kilogram in February.
Senate Resolution 344, filed by Senator Loren Legarda, calls for a review of whether the Department of Agriculture followed import calibration and cold storage guidelines. The investigation also examines the government's earlier commitment to stop onion imports by January.
According to the resolution, about 4,000 tons of approved buffer imports entered the market during the peak harvest period. "[R]eports indicate a systemic failure in import calibration, where the arrival of approximately 4,000 metric tons of approved buffer imports coincided with the peak local harvest in the Philippines, creating an artificial glut that suppressed local prices," the resolution reads.
Legarda said the decline in prices occurred as farmgate values approached the average production cost of ₱17–₱35 (US$0.31–US$0.63) per kilogram. At the same time, retail prices in Metro Manila remained higher.
Farmgate prices may continue to decline from March through April as harvest volumes increase. Limited cold storage capacity may further affect the market during this period.
The resolution also calls for an investigation into a "prior booking" system at private cold storage facilities. The system has been reported to restrict farmer access to storage during peak harvest periods, which may lead to producers selling onions at lower prices.
Reports of smuggled onions from China found in Bulacan are also cited in the resolution. According to Legarda, the presence of these products increased supply in the market and affected farmgate prices.
"Why allow importation at the height of harvest? The result is farmgate prices collapsing while market prices remain high. Traders profit, but farmers are left behind," Legarda said.
The resolution references the overlap of 4,000 tons of imports with the harvest season and the use of 82% of available cold storage capacity. Although the Department of Agriculture indicated imports would stop by January, records from the Bureau of Plant Industry show Sanitary and Phytosanitary Import Clearances remained valid until February 15.
The proposal also recommends reviewing cold storage capacity in Nueva Ecija and Occidental Mindoro, examining other onion-producing areas, and evaluating the structure of the onion value chain.
Food Terminal Inc. has started purchasing local onions in Nueva Ecija to support farmgate prices. Similar purchases are planned in Occidental Mindoro.
Source: Daily Tribune
