DA sets P120/kilo onion cap to rein in holiday price surge

The Department of Agriculture (DA) on Sunday said the proposed maximum suggested retail price of P120 per kilo for both red and white onions starting Monday, December 1, aims to stabilize prices amid rising demand ahead of the Christmas season.

Agriculture Secretary Francisco Tiu Laurel Jr. said imported onions land at around P60 per kilo, making a P120 cap enough to ensure reasonable margins across the supply chain.

“At P120, everyone—from importers to logistics providers to retailers—still earns a decent profit,” he said in a statement.

Tiu Laurel said that while there has been a slight drop in supply due to delayed imports, this does not justify prices more than doubling their usual level.

The DA said that its Agribusiness and Marketing Assistance Service (AMAS) recently observed retail prices climbing to as high as P300 per kilo.

“There may be some tightness in supply, but that’s no excuse for runaway prices. At current market levels, it already smacks of profiteering,” Tiu Laurel said.

AMAS director Junibert De Sagun said onion retailers have expressed support for the price cap.

The group, however, requested that supply be delivered to them at around P90 per kilo and that the cap be enforced only once new shipments arrive, to avoid losses on stocks purchased at higher prices.

Food Terminal Inc. has committed to supplying imported onions at P90 per kilo on a cash-on-delivery basis, the DA said, adding that shipments are expected to arrive within two weeks.

“Officials assured growers and traders that any ceiling on local onions will remain subject to further consultation and adjustment should farmgate prices rise sharply,” the department added.—MCG, GMA Integrated News