State-run Food Terminal Inc. (FTI) is intensifying its intervention in the onion market, urging private buyers to accelerate procurement in Occidental Mindoro to support farmgate prices and avert supply disruptions.
Edoard Medalla, FTI sales and distribution manager, said private buyers have procured approximately 6,000 bags averaging 27 kilograms each. These were purchased at P32 to P35 per kilogram, significantly above the prevailing farmgate price of about P22.
Including logistics costs of about P8 per kilogram to transport onions to cold storage in Nueva Ecija, the effective cost rises to roughly P40 to P43 per kilogram. This further squeezes margins, as production costs in Mindoro are estimated at P18 to P24 per kilogram.
“These are perishable goods whose quality deteriorates quickly after harvest,” Medalla said. “This is our first time operating in the Mindoro onion market, so we are working with partners in Nueva Ecija to preserve quality.”
