STATE-OWNED Food Terminal Inc. (FTI) on Monday urged the private traders to buy onions in Occidental Mindoro, where an oversupply of the crop might cause a freefall in prices.
The onions are being offered at P32 to P35 per kilogram (kg), higher than the prevailing farmgate price of P22/kg to give farmers a profit margin, said FTI Sales and Distribution Manager Edoard Medalla.
Average production costs of onions in Mindoro range from P18 to P24/kg.
Some 6,000 bags have been sold, each bag of onions averaging 27 kg, said Medalla.
In Nueva Ecija, FTI-endorsed buyers have purchased about 110,000 bags of onions at P40/kg.
Occidental Mindoro‘s onion output is estimated at 3.2 million bags.
“We cannot guarantee to buy all [of it], but we will try to support prices at P35 a kilo, depending on quality and storage availability,” Medalla said, noting that, even under optimal storage conditions, white onions last only up to four months and red onions about six months.
“These are perishable goods whose quality deteriorates quickly after harvest,” said Medalla.
Mindoro has eight cold-storage facilities that can accommodate only 16 percent of this year‘s total projected harvest.
The Department of Agriculture had discussed the opening of a mega cold storage facility next year, but this can cover only about 25 percent of the total projected output.
Targeted procurement and storage are crucial to reducing price fluctuations without causing market distortion, Agriculture Secretary Francisco Tiu Laurel Jr. said.
“We must strike a careful balance — ensuring farmers earn fairly while protecting consumers from price spikes,” Tiu Laurel said. “Strategic buying and storage allow us to support producers during periods of oversupply, while preserving enough buffer to prevent sharp increases in retail prices.”
To overcome such constraints, FTI has considered using cold storage facilities outside Mindoro, and is currently transporting the onion stocks to Nueva Ecija, which adds about P8/kg in logistics costs.
“This is the first time we entered the onion market in Mindoro, so we have to rely on experts we have engaged with in Nueva Ecija to maintain quality,” said Medalla.
Mindoro‘s strong performance in onion production in 2025 had motivated farmers to expand plantation areas to 8,637 hectares from 6,000 hectares in 2024. This would translate to an additional harvest of 27,000 metric tons, which would cover half of last year‘s shortfall in national domestic production.
However, the oversupply and the lack of storage facilities have given private traders leverage to drive prices down, prompting FTI to intervene in the market.