Government sets price cap on onions to curb holiday price hike beginning Dec. 1

The Department of Agriculture has announced a price cap on both red and white onions, setting a maximum suggested retail price of P120 per kilo starting on December 1. This measure comes as a response to the skyrocketing market prices due to increased demand during the holiday season.

Agriculture Secretary Francisco P. Tiu Laurel Jr. emphasized that while there may be some supply constraints due to delayed imports, the current price levels are unjustifiably high. The aim of the price cap is to rein in the market and prevent excessive markups that exploit the current conditions.

Monitoring conducted by the Agribusiness and Marketing Assistance Service (AMAS) revealed retail prices as high as P300 per kilo, almost three times the fair market price believed by officials. Imported onions, on the other hand, are priced at around P60 per kilo, giving room for reasonable profits even with the proposed P120 cap.

Director Junibert E. De Sagun of AMAS mentioned that onion retailers were generally in agreement with the suggested cap during consultations. Their main request was that supply be provided to them at around P90 per kilo. They also asked for the cap to be implemented once new shipments arrived to prevent losses on existing inventory purchased at higher prices.

To address the concerns raised by stakeholders, Food Terminal Inc. committed to supplying imported onions at the requested price of P90 per kilo on a cash-on-delivery basis. This move is expected to support the implementation of the price cap in early December.

It was also highlighted that close monitoring of import volumes and schedules is essential to prevent market manipulation and protect local farmers from being adversely affected by sudden changes. Officials reassured growers and traders that any price ceiling on local onions would be subject to further review and adjustment if farmgate prices showed a sharp increase.

The primary goal of the price cap is not only to lower prices temporarily but to stabilize the supply chain for onions. This ensures that consumers are shielded from sudden price spikes while also guaranteeing fair treatment for farmers and retailers throughout the holiday season. The Department of Agriculture is committed to maintaining market stability and protecting the interests of all stakeholders involved in the onion industry.