Agri group warns of looming onion crisis in Central Luzon

An alliance of agricultural industry players on Sunday warned of a "looming onion crisis" in Central Luzon.

"SINAG officials and Nueva Ecija farmers blamed the cartel of onion traders and importers for 'over-stocking' imported onions, thus forcing the price of locally-produced onions to sink at 'ridiculously low levels,' with still very few takers," the group said in a statement Sunday.

“Ibinababa na nang mga magsisibuyas ang presyo sa P10-12 per kilo for white onions at sa P7-9 per kilo for red onions pero madalang pa rin ang pagbili ng mga onion traders,” said SINAG chair Rosendo So in the statement. “Samantala, hindi naman gaano bumababa ang presyo ng sibuyas sa mga palengke at supermarket na nanatili sa P35-40 per kilo."

According to So, agents of onion traders were "reportedly apprehensive" about purchasing onions from local farmers as most traders' warehouses in Manila and nearby provinces were "full of imported and smuggled onions."

The group claimed that the Bureau of Customs had confirmed that "smugglers are now using some ports in Mindanao to smuggle rice and onion; onion traders in Luzon therefore see no need to supply onions in Visayas and Mindanao."

"Reports reaching SINAG indicate that these onion traders are the same group of unscrupulous businessmen behind the stratospheric rise of garlic prices last year," the group said.

The price of garlic skyrocketed to P350/kilo in June 2014, which the Justice Department said was due to the activities of a cartel.

Charges had been filed against officials of the Bureau of Plant Industry (BPI), the Department of Agriculture, members of the National Garlic Action Team, and supposed dummies of importer Lilia Cruz, alias Leah Cruz, who reportedly cornered at least 75 percent of the total garlic imports in the country by virtue of BPI import permits.

“The difference of onion price from farm gate to retail of P25-30 per kilo is a glaring example of price manipulation by a cartel of traders and importers who have total control of onion supply," So alleged.

According to So, the ideal situation is for the onion growers to sell their produce by at least P12 per kilo for white onions and at least P15 per kilo for red onions while retail prices for onions should only be P25 per kilo.

Agriculture Secretary Proceso Alcala, meanwhile, told GMA News Online that his department would check if onion prices were being manipulated.

However, Alcala explained, “Mababa na ang presyo kasi marami ang nag-tanim, nag-start na ang harvest season.”

Help for Filipino growers

Meanwhile, So urged the Agriculture department, big food processors, and supermarket chains to buy their onions "directly at farm gate" for around P12 per kilo "just so onion growers could at least 'break even.'"

SINAG also encouraged eateries to serve onion dishes, like onion soup, onion rings, or onion pickles to help the Filipino onion growers.

The group said it can make "transport arrangements" for those interested in helping local growers.

According to SINAG, onion growers in Nueva Ecija are projected to harvest 10.2 million kilos of white onion and 75.3 million kilos of red onion this harvest season.

In 2013, local onion production stood at 134 million kilos while government reported that onion imports was at 8.5 million kilos.

However, SINAG pointed to a United Nations trade report which pegged 2013 Chinese onion exports to the Philippines at 11.5 million kilos, European Union exported 2.8 million kilos of onions, and  629,000 kilos came from India.

"The UN data indicates that actual volume imported onion is easily double the quantity officially reported by government," SINAG said. — DVM, GMA News