The Department of Agriculture (DA) will enforce a P120-per-kilo suggested retail price (SRP) for both red and white onions starting Dec. 1, in a bid to cool soaring retail prices ahead of the holiday surge in demand.
Agriculture officials said the ceiling is intended to bring order to a market that has strayed far from reasonable pricing due to tight supply and opportunistic markups.
Agriculture Secretary Francisco Tiu Laurel Jr. noted that while the arrival of imported shipments has been delayed, the situation does not justify current market prices.
“There may be some tightness in supply, but that’s no excuse for runaway prices. At current market levels, it already smacks of profiteering,” he said.
Latest monitoring by the Agribusiness and Marketing Assistance Service (AMAS) showed retail prices climbing as high as P300 per kilo, nearly triple what officials deem reasonable.
Tiu Laurel said imported onions land at about P60per kilo, meaning the P120 ceiling still allows “decent profit” across the supply chain.
“At P120, everyone, from importers to logistics providers to retailers—still earns a decent margin,” he added.
AMAS director Junibert De Sagun said retailers were generally receptive to the cap during recent consultations, but asked that supply be delivered to them at around P90 per kilo.
Retailers also requested that the SRP take effect only once new shipments arrive, so existing stocks purchased at higher prices are not sold at a loss.
Food Terminal Inc. has committed to delivering imported onions at P90 per kilo on a cash-on-delivery basis. Shipments are expected within two weeks, positioning the DA to firmly enforce the SRP in early December.
Stakeholders also sought stricter monitoring of import volumes and arrival schedules to prevent market manipulation and avoid displacing local growers.
Concerns were raised about rising farmgate prices following reduced planting and typhoon-related losses. DA officials assured farmers that any ceiling on local onions will remain subject to further consultation and could be adjusted if farmgate prices climb sharply.
