DA Denies Onions Oversupply, Prices Not Due to Imports | Philippines News

The Department of Agriculture (DA) on Sunday refuted claims that an oversupply of imported onions is driving down farmgate prices for local red onions, a concern recently voiced by farmers in Central Luzon.

The agency responded to a complaint received via Facebook Messenger on Friday, alleging that imported onions were accumulating in cold storage facilities across the region and negatively impacting the prices received by farmers. Agriculture Secretary Francisco Tiu Laurel Jr. Promptly directed the Bureau of Plant Industry (BPI) to verify the data using the DA’s One-Stop Industry Revitalization and Information System (Osiris).

The Osiris data, covering approximately 82 percent of the country’s cold storage facilities, indicated that as of 4:15 p.m. On Friday, stocks included 4,454.09 metric tons of red onions and 5,271.15 metric tons of yellow onions. Red onions were averaging P30.36 per kilogram, with current inventories projected to last until February 19. Yellow onion stocks were expected to be available until March 15.

While acknowledging that these figures might initially suggest an oversupply, the DA emphasized that its analysis accounts for the anticipated seasonal increase in local onion harvests, expected to peak between March and April. This timing is crucial, the agency stated, as it suggests the imported stocks are primarily bridging a supply gap rather than creating a surplus.

Further supporting this assessment, the DA’s National Plant Quarantine Services Division reported that approximately 8,000 metric tons of imported red onions are currently covered by sanitary and phytosanitary import clearances valid until February 15. Even if all remaining imports arrive this month, the DA projects these stocks will only extend supply until around March 6, coinciding with the start of the peak local harvest.

The DA also noted the importance of considering existing stocks held in private cold storage facilities, which were not included in the Osiris data. Local red onion production from January to March is estimated to reach 9,325.14 metric tons, further bolstering the anticipated supply.

The agency clarified that while production from provinces specializing in traditional onion varieties will contribute to overall supply, it is not expected to further depress prices. Supply of yellow onions, primarily used for commercial purposes, remains relatively low, with a projected availability of only 1,645.25 metric tons for the quarter.

“The numbers show that current stocks from imports are not overwhelming the market, but merely plugging a supply gap,” Secretary Tiu Laurel said. He encouraged farmers to utilize storage facilities provided by the DA to extend the shelf life of their harvest and to strategically time their releases to coincide with improved market prices, avoiding potential oversupply situations.

The DA also announced plans to inspect cold storage facilities, particularly those it has funded in Central Luzon, to ensure proper utilization, guarantee storage space for local farmers’ harvests, and contribute to price stabilization. This inspection will focus on ensuring the facilities are available during lean months and help maintain a consistent supply throughout the year.