The Department of Agriculture will impose a P120-per-kilo maximum suggested retail price on both red and white onions starting today, December 1, a move aimed at cooling soaring market prices amid rising demand as the Christmas season approaches.
Officials say the cap is designed to restore order to a market that has drifted far from reasonable pricing amid tight supply and opportunistic markups.
Agriculture Secretary Francisco P. Tiu Laurel Jr. said that while delayed import arrivals have slightly lessened supply, they do not justify prices shooting to more than double normal levels. “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.
Recent monitoring by the Agribusiness and Marketing Assistance Service (AMAS) revealed extreme retail prices reaching as high as P300 per kilo—nearly triple what officials believe is a fair market price.
Tiu Laurel added that imported onions land at around P60 per kilo, which means that a P120 ceiling still leaves room for reasonable margins along the supply chain.
“At P120, everyone—from importers to logistics providers to retailers—still earns a decent profit,” he noted.
AMAS Director Junibert E. De Sagun said onion retailers were generally receptive to the proposed cap during a recent consultation.
Their primary condition: that supply be delivered to them at around P90 per kilo. Retailers also requested that the cap be implemented only once new shipments arrive to avoid squeezing existing inventories purchased at higher prices.
Food Terminal Inc. has since committed to supplying imported onions at P90 per kilo on a cash-on-delivery basis. Shipments are expected to arrive within two weeks, positioning the DA to implement the cap in early December.
Stakeholders also highlighted the need for tighter monitoring of import volumes and arrival schedules to prevent market manipulation and ensure local farmers are not displaced or harmed by sudden influxes.
Concerns were raised about potential farmgate price increases, driven by reduced planting and recent typhoon-related crop losses. Officials assured growers and traders that any ceiling on local onions will remain subject to further consultation and adjustment should farmgate prices rise sharply.
The DA emphasized that the goal is not merely to lower prices temporarily but to stabilize the onion supply chain—protecting consumers from sudden spikes while ensuring farmers and retailers are treated fairly throughout the holiday season.
