THE Department of Agriculture (DA) on Sunday denied that an alleged oversupply in imported onions is causing a drop in farmgate prices of red onions.
The agency was reacting to a complaint sent to its Facebook Messenger on Friday last week that imported onions are piling up in cold-storage facilities across Central Luzon and weighing down on red onion farmgate prices.
Acting on the complaint, Agriculture Secretary Francisco Tiu Laurel Jr. ordered the Bureau of Plant Industry (BPI) to verify the DA’s data center, One-Stop Industry Revitalization and Information System (Osiris), which covers 82 percent of cold storage facilities in the country.
It found imported stocks of 4,454.09 metric tons (MT) of red onions and 5,271.15 MT of yellow onions as of 4:15 p.m. on that day.
Red onions are selling at an average of P30.36 per kilogram, with stocks to last until Feb. 19, and those of yellow onions available until March 15, the DA said.
But while the volume of stocks may suggest an oversupply at first glance, the DA noted it has factored in the expected seasonal increase in local harvest between March and April.
Meanwhile, the DA’s National Plant Quarantine Services Division said that about 8,000 MT of imported red onions are covered by sanitary and phytosanitary clearances valid until Feb. 15.
Even if all remaining imports arrive within the month, these stocks are likely to last only until March 6, just as local harvest starts to peak, the DA said while noting that old stocks held in private cold storages must also be accounted for.
After March 6, supply will improve, given the favorable weather conditions, the DA said, estimating that local red onion production from January to March will reach 9,325.14 MT.
While production from provinces known for traditional onion varieties may contribute to local supply and help meet demand, these won’t cause prices to drop, the DA explained.
Meanwhile, supply of yellow onions, commonly used for commercial purposes, is low with only 1,645.25 MT projected for the quarter, said the DA.
“The numbers show that current stocks from imports are not overwhelming the market, but merely plugging a supply gap,” Tiu Laurel said.
Farmers are encouraged to use old storage facilities provided by the DA in storing their onion harvest to prolong shelf life, Tiu Laurel said, advising them to also time their stock releases when market prices have improved to avoid overwhelming supply.
The DA said it will inspect cold storage facilities, especially those it has provided in Central Luzon, to ensure proper usage, guarantee storage space for the harvests of local farmers, ensure their availability even during lean months, and stabilize prices.