Gov’t intensifies targeted onion buying amid farmgate price pressures

By Stephanie Sevillano, Philippine News Agency

(PNA photo by Yancy Lim)

MANILA – The Department of Agriculture (DA) on Monday intensified targeted onion procurement to support local growers amid farmgate price pressures.

This comes as the Food Terminal Inc. (FTI) accelerates market intervention in partnership with the private sector to support onion farmers in Occidental Mindoro.

In a statement, DA Secretary Francisco Tiu Laurel Jr. said the move is critical to stabilize price swings “without distorting the market.”

“We must strike a careful balance – ensuring farmers earn fairly while protecting consumers from price spikes,” he 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,” he added.

Private investors procured about 6,000 bags of onions in Occidental Mindoro at PHP32 to PHP35 per kilogram.

This is significantly higher than the PHP22 per kg prevailing farmgate price of onions, and reasonable considering the average production cost of PHP18 to PHP24 per kg.

FTI Sales and Distribution Manager Edoard Medalla urged the private sector to accelerate procurement of local onions.

Although the FTI’s intervention remains limited, Medalla said these efforts will help drive up farmgate prices and prevent future supply shocks.

“We cannot guarantee we will buy all production, but we will try to support prices around PHP35 a kilo, depending on quality and storage availability,” he said.

The estimated onion output in Occidental Mindoro 3.2 million bags.

The agency, meanwhile, coordinated with experts outside the province to secure storage and ensure the quality of the procured harvest.

“This is the first time we entered the onion market in Mindoro, so we have to rely on experts we have engaged in Nueva Ecija to maintain quality,” Medalla said.

In Nueva Ecija, about 110,000 bags have already been procured at an average price of PHP40 per kilogram.

The FTI has earlier secured a 190,000-bag capacity for cold storage in Nueva Ecija.