Rising onion prices in the Philippines have prompted agriculture officials to announce that the country will import about 22,000 tonnes by March to curb dwindling domestic supplies and rising costs.
Key Points
Onions. It is a staple of local cuisine in Southeast Asia and is often paired with garlic as a base for many dishes
The average monthly demand for vegetables in the country is 17,000 metric tonnes.
As of Monday, red and white onions in the Philippines were selling at 600 pesos ($10.88) per kilogram, based on the Agriculture Ministry’s monitoring of market prices in the Manila area.
It costs 3 times the price of chicken and 25 percent to 50 percent more than pork or beef.
What causes high prices?
Philippine lawmakers want to investigate the cause of the price hike, which President Ferdinand Marcos Jr., who also serves as agriculture secretary, is directly responsible for.
Business has accused the agriculture ministry of failing to make proper supply estimates despite issuing warnings last year.
Agriculture officials have warned that onion and garlic shortages are likely in August, when the price of local red onions is as low as 140 pesos ($2.54).Onion smuggling
Last month, customs officials intercepted $362,000 worth of red onions from China hidden in boxes of bread and pastry products and another estimated $309,000 worth of white onions smuggled in containers containing clothes.
Assistant Secretary of Agriculture Rex Estoperez said the announced imports would be a “temporary solution.”
The Philippines recently concluded a bilateral agreement with China to enhance agricultural and trade cooperation, and it is not clear whether onion imports will be part of this cooperation.
