The government has stepped into the onion market early, with Agriculture Secretary Francisco Tiu Laurel Jr. ordering state-run Food Terminal Inc. to begin buying onions this week to prevent a collapse in farmgate prices as the harvest season nears its peak.
A team has already been dispatched to Nueva Ecija, the country’s onion capital, to secure cold storage for 50,000 28-kilogram bags, with room to expand if needed.
FTI is also eyeing other major onion-producing provinces, including Occidental Mindoro, Pangasinan and the Cagayan Valley, to support farmgate prices and stabilize supply. The agency is building cold storage to extend the shelf life of onions throughout the year.
Nueva Ecija produces more than half of the nation’s onions, with Bongabon alone accounting for roughly 15 percent of total output. National onion consumption is estimated at 550 metric tons per day.
Farmgate prices in the province have climbed to as high as P45 per kilogram, according to FTI president Joseph Lo, following assurances that imported red and white onion stocks are limited.
Buying local supply before harvest peaks is intended to prevent the usual price slump caused by simultaneous heavy imports and local surges, which historically discouraged growers and triggered production gaps.
FTI’s move is expected to act as a buffer, smoothing out gluts and tempering price swings. The 50,000 bags, equivalent to about 1,400 metric tons, may not fully stabilize prices, but the government deems it beneficial to intervene early.
