Onion growers warn of oversupply due to smuggling

MANILA, Philippines - While the pork sector is fearing a possible supply shortage, the local onion sector is facing an opposite threat of “dumping” and over-supply of smuggled onions, according to onion growers led by Benito M. Domingo and Anching Collado of the Philippine Seed Industry Association.

Collado said the local P4 billion onion industry faces the same situation as the garlic industry did only recently.

A couple of years back, Collado recalled, imported garlic was being brought in at P110 per 10 kilogram bags, depressing local garlic prices. Now, with the local garlic industry being reduced to a small struggling few, imported garlic prices have climbed to P520 per seven-pound bags, he added.

 “The prices have increased, while the bags have gotten smaller,” the onion growers pointed out.

Garlic prices are expected to climb further as there is not enough local garlic to offset the imported variety.

Collado, along with other onion growers, pointed out that the six top onion importers, five of whom are mainland China-based businessmen, are once again urging the Bureau of Plant Industry to issue import permits supposedly to avoid a rise in onion prices due to the adverse effects of the recent typhoons.

The six top onion importers were previously identified as LKK Trading, owned by a certain Lin Kim Khok; 505 Trading, owned by a Tian Long; Vanida Trading, owned by a Choi Lin; Triple A, owned by a Kenny Sy; a Chinese trader known only as Albert Ching, and the lone Filipino-Chinese importer Sy Ling Hood a.k.a Leo Chan who owns SLH Cold Storage.

The local onion growers explained that while local onion prices increased following the typhoons, the increase was caused by a logistical/supply problem as growers were not immediately able to dry and transport their produce to the markets.

They said onion prices are beginning to stabilize and that prices should be maintained at around the current P47 per kilo. Growers said supply is adequate with some 250,000 25-kilogram bags of onion in storage. 

Citing this, they are asking the BPI to delay the granting of import permits for onion until after the end of this month.