The Department of Agriculture (DA) has intervened to address the rising red onion prices in the market by imposing a suggested retail price (SRP) of P170 per kilogram on the commodity.
Senior Agriculture Undersecretary Domingo F. Panganiban issued Administrative Circular (AC) 9 Series of 2022 that ordered the implementation of an SRP for red onions sold in Metro Manila wet markets.
In the AC, Panganiban argued that there is a need to provide a “guide” to the consuming public on “reasonable” prices of basic necessities in the market amid various global economic factors affecting the country.
“Considering the effects of the rising fuel prices due to the Russia-Ukraine conflict, aggravated by the pandemic causing high prices of agricultural commodities,” he said in the circular signed last October 7 but was made public on October 10.
“In order not to aggravate the current difficulties of the Filipino people affected by the pandemic and rising fuel prices, there is a need to guide the consuming public on the reasonable prices of basic necessities in the market,” he added.
The DA has set the SRP for medium-sized red onions at P170 per kilogram (13 to 15 pieces per kilogram), according to the AC.
The SRP took effect on October 10 following its publication on the DA’s web site and would remain in effect for 60 days “unless revised/revoked and/or lifted,” according to the AC.
The agriculture department’s daily price monitoring reports showed that the average retail price of red onions in Metro Manila has been constantly increasing in previous weeks, now reaching at P200 per kilogram.
Agriculture Assistant Secretary Kristine Y. Evangelista told reporters that the DA held a stakeholders meeting last week with farmers, traders, viajeros and even retailers to discuss the SRP on red onions.
Evangelista disclosed that the various red onion industry players agreed on the P170 per kilogram SRP.
“We saw in our daily price monitoring since the end of August that the price of red onions continuously increased and eventually reached P200 per kilogram,” she said.
“Based on our cost structure that onion farmers approved, the retail price of red onions in wet markets should be lower than its prevailing price,” she added.
Evangelista said the DA would conduct necessary market investigations to ensure that red onion vendors would follow the P170 per kilogram SRP.
Evangelista added that the DA would issue show cause orders and letters of inquiry to red onion vendors if necessary to determine the price structures of certain retailers.