White onion supply good only until July, group warns

MANILA, Philippines — Farmers’ group Samahang Industriya ng Agrikultura (SINAG) yesterday said the supply of white onions is expected to last only until July, adding that the importation of at least 7,500 metric tons (MT) is necessary to prevent traders from jacking up prices after the retail price of the bulbs reached as high as P720 per kilo last December.

In a text message to The STAR, SINAG president Rosendo So said the Bureau of Plant Industry (BPI) is still finalizing the total local production of onions as the harvest has almost ended.

“There is no final inventory. SINAG will join the inspection with BPI,” So said, adding that based on his projection, the stocks of white onions would be good only until July this year.

For his part, SINAG executive director Jayson Cainglet said the importation of at least 7,500 MT of white onions should be done to allay fears of shortage in supply, which he said was used by traders and importers last year to increase retail prices.

“We need to import from the onset to allay fears of shortage, which is being used as a card of traders or importers last year,” Cainglet said in a separate message to The STAR, referring to the spike in the retail price of onions in December 2022 amid the shortage in supply.

Cainglet said at least 7,500 MT of white onions should be outsourced to prevent a situation similar to last year’s from happening, where institutional buyers like restaurants, fast food and hotels shifted to red onions because of the scarcity of the white bulbs.

“Last year, we recommended the importation of 7,500 MT, most likely, the volume is still the same but we are still awaiting the data from the BPI. The data from the cold storages is crucial but until now, the BPI has no record yet,” he added.

At the same time, Cainglet said the retail price of onions should not exceed P200 per kilo as the bulbs already increased by P20 per kilo in many markets in Metro Manila.

Based on latest monitoring of the Department of Agriculture on Friday, more markets sold onions at P200 per kilo, including New Las Piñas City Public Market, Guadalupe Public Market in Makati City and Marikina Public Market.

Cainglet said the retail price of onions has more than doubled this year compared to last year due to high farmgate prices.

“The farmgate price increased from P30 to P80 (per kilo) last year to P50 to P120 (per kilo) this year,” Cainglet said.

On May 11, 2022, the retail price of the bulbs in Metro Manila markets ranged between P70 and P100 per kilo compared to P160 and P200 per kilo on May 11, 2023.

“The bulk of the harvest is finished, except Occidental Mindoro and a few areas in Nueva Ecija and Pangasinan. Currently, farmgate price hovers between P100 and P120 per kilo, hence maximum retail price should not exceed P200 per kilo,” Cainglet said.

He added that by June, all onions in the market would be coming from traders and cold storage owners and importers.

“At peak harvest this first quarter, farmers sold their onions to traders between P50 and P100 per kilo. At no point must retail prices exceed P200 per kilo,” he said.

According to Cainglet, the DA must already plan the importation of white onions.

“The DA must have the right information regarding stocks at the cold storages and inventory of where the onion imports went. Unfortunately, the harvest is completed but the DA and the BPI have no information,” Cainglet said.?In February 2023, the DA allowed the importation of 5,000 MT of onions.

“It is inexcusable for the DA and BPI if we will have a repeat of the artificial shortage of onions and apparent hoarding that resulted in the spike of onion prices late last year up to early this year,” Cainglet added.

The retail prices of onions ranged between P160 and P190 per kilo in San Andres Market, Quinta Market, Pritil Market, all in Manila; Pamilihang Lungsod ng Muntinlupa, Pasay City Market and Pasig City Mega market; Commonwealth Market, Muñoz Market and Mega Q-mart, all in Quezon City, and Malabon Central Market.