The government may again impose a suggested retail price (SRP) for onions in its bid to ensure stable prices during the lean months for the crop, according to an official of the Bureau of Plant Industry (BPI).
During a press briefing on Wednesday, BPI Spokesperson Jose Diego Roxas said historical data point to the possibility that the Philippines would experience a shortage of white onions starting July.
“For red onions, historical data indicate that the country will see a shortfall in onion supply by December,” Roxas said in a mix of English and Filipino.
As the lean months for onion will start in June, the attached agency of the Department of Agriculture (DA) said imposing the SRP again will help the government monitor price movements.
“During our meeting [last Tuesday], one of the measures that we’re looking at is the imposition of the SRP, which would serve as our benchmark. It will also serve as basis to determine if the country needs to import and the other interventions that must be implemented [by the government],” Roxas said.
Based on the BPI’s monitoring, the prevailing price of red onions ranges from P160 to P200 per kilo while white onions are sold for P150 to P200 per kilo.
He said the DA and the BPI plan to coordinate with local price coordinating councils in implementing the SRP scheme. He said agriculture officials are also keen on tapping the assistance of the Philippine Competition Commission to prevent collusion among traders or price manipulation.
As for the volume required to plug the gap in output, Roxas said the government wants to calibrate importation to ensure that the arrival of imports would not affect local prices.
BPI said imports are not needed for now as the Philippines still has enough supply of red and white onions.
The government first implemented the SRP scheme for red onions in December, when prices soared to as much as P700 per kilo. The DA issued Administrative Circular (AC) No. 12 dated December 29, 2022 which mandated wet markets in the National Capital Region to observe the SRP for red onions. The scheme was in place until the first week of January.
The agency issued another administrative circular in February which imposed the SRP scheme for red onions for 60 days.
Image credits: Nonoy Lacza