Imported stocks not enough to depress red onion prices—DA data

Agriculture Secretary Francisco P. Tiu Laurel Jr. has directed a review of red onion prices following concerns from Nueva Ecija farmers about a drop in farmgate values, while initial data suggests current supply levels are not excessive but rather bridging a gap before the local harvest peaks.

Onion Supply Assessment

The concerns were raised by onion farmers via Messenger on February 13, citing a buildup of imported onions in cold storage facilities across Region III. The Bureau of Plant Industry (BPI) subsequently analyzed data from the One-Stop Industry Revitalization and Information System (OSiRiS).

As of 4:15 p.m. on February 13, monitoring reports covering approximately 82 percent of cold storage warehouses indicated 4,454.09 metric tons (MT) of red onions and 5,271.15 MT of yellow onions in stock, with the vast majority being imported. At an average price of P30.36 per kilo for red onions, current inventories are projected to last until February 19 for red onions and March 15 for yellow onions.

While the figures initially suggest an oversupply, the Department of Agriculture (DA) anticipates a seasonal increase in local harvests between March and April. Approximately 8,000 MT of red onions are covered by import clearances valid until February 15 and are expected to arrive before the local harvest begins.

The BPI estimates that even with the arrival of all remaining shipments this month, imported red onion stocks would likely only last until March 6, coinciding with the peak of the local harvest. The DA also noted the need to account for any existing old stocks held in private cold storage facilities.

Local red onion production from January to March is estimated at 9,325.14 MT, representing roughly 18 percent of the total 52,034.4 MT. Supply of yellow onions, used primarily for commercial purposes, is projected at only 1,645.25 MT for the quarter.

DA Response and Farmer Support

“The numbers show that current stocks from imports are not overwhelming the market but merely plugging a supply gap,” Tiu Laurel said. “That said, we are taking a closer look at why onion prices are falling at this time of the year, as claimed by farmers.”

The DA is urging farmers to utilize available cold storage facilities provided by the department to extend the shelf life of their harvested onions and optimize their release to market when prices improve. The department will also inspect cold storage facilities, including those it has provided, to ensure adequate space and proper utilization for the benefit of local farmers.

These cold storage facilities were established to ensure availability during lean seasons and to stabilize prices, not to contribute to supply fluctuations.