Onion farmers get help, but retail prices remain high

MANILA, Philippines — Onion farmers were able to sell P2.6 million worth of their harvests as the Department of Agriculture (DA) directly linked them to consumers and institutional buyers since September last year.

Broken down in weight, the P2.589 million worth of onions sold by farmers’ cooperatives and associations (FCAs) to institutional buyers as of Jan. 24, 2023 translates to 3,478 kilos of red onions (P755,455) and 5,106 kilos of white onions (P1.833 million).

This was the result of the DA’s move to enhance its market linkage initiative through its Agribusiness and Marketing Assistance Service in

compliance with the directive of President Marcos.

Part of the DA’s efforts was to have its Kadiwa trucks and vans help FCAs with their hauling and delivery to markets and big buyers.

The DA also awarded a truck worth P1.325 to RiceUp Farmers Inc., which also received a grant for P1 million through the “Enhanced Kadiwa ni Ani at Kita” program last year.

Moreover, farmers were provided with assistance and training in farm clustering and consolidation, in which market-driven production and focus on supplying institutional buyers are applied to help them earn better with bigger volume.

Through Sakahon, an agritech solutions company, Elvin Jerome Laceda and his team aim to create a system wherein the farmers already know what the market needs even before they plant and harvest.

In addition to serving big buyers, RiceUp and Sakahon farmer-partners regularly bring their produce to the DA Kadiwa outlet in Quezon City.

Laceda and Bayambang farmers brought 1.5 tons of onions – priced at P240 per kilo for big sizes and P140 a kilo for small sizes – to the DA Kadiwa and the Senate in the last week of January.

He said they bought the onions at P200 per kilogram, which is the highest farm gate price in the area, so that the producers could earn an additional P90,000 for every 1,000 kilos. Previously, the onions were bought from them at only P110 per kilo.

Onion retail prices still high

Despite these efforts, along with the harvest season and entry of imported onions, retail prices of onions still remain high.

Based on the DA’s monitoring yesterday, local red onions are sold in wet markets at P240-310 per kilo; imported red onions at P240-300 per kilo; local white onions at P160-260 per kilo; and imported white onions at P200-350 per kilo.

These prices are still above the suggested retail price of red onions at P250 per kilo set by the DA from Dec. 30 to the first week of January.

While the SRP is subject to stakeholders’ consultation, the DA has deferred the extension of the SRP due to the forecast lower price range of onions following the harvest season.

The agency had earlier forecast onion prices may decrease to P100-P150 per kilo with the entry of more than 5,000 metric tons (MT) of imported onions and as harvest season peaks.