A sharp spike in red onion prices, soaring above ₱300 per kilo as the holidays approach, has triggered a stern response from the Department of Agriculture. Officials are demanding answers from importers regarding the sluggish pace of shipments, threatening to revoke unused import permits.
The Bureau of Plant Industry is currently scrutinizing how Sanitary and Phytosanitary Import Clearances (SPSICs) are being utilized. A concerning disparity has emerged: permits for red onions are being used far slower than those for yellow onions, despite the significantly greater consumer demand for the red variety.
Agriculture Secretary Francisco Tiu Laurel, Jr. issued a clear warning. Importers must demonstrate a plan to utilize their permits, or risk losing them. The goal is to bolster domestic supply during a critical period and prevent further price increases.
The DA initially authorized imports of up to 69,040 metric tons of red onions and 42,261 metric tons of yellow onions. However, as of November 20th, only 192 out of 1,202 SPSICs for red onions had been activated, resulting in just 12,824 metric tons arriving since September.
This slow uptake is particularly alarming given the estimated monthly consumption of around 17,000 metric tons. Market vendors are already reporting dwindling supplies, directly contributing to the dramatic price surge impacting consumers.
To accelerate the influx of onions, the DA plans to cancel unused permits and reallocate them to other importers, including the state-run Food Terminal, Inc. This move aims to alleviate supply pressures and stabilize prices quickly.
Industry insiders suggest the delays may not be accidental. Danilo Fausto, president of the Philippine Chamber of Agriculture and Food, Inc., believes some traders may be deliberately holding back shipments to capitalize on higher prices.
Fausto suspects this tactic is likely limited to December, anticipating that continued shortages will drive prices even higher. He also notes that existing stocks, both imported and locally grown, are being strategically held in cold storage facilities, awaiting optimal release timing.
All SPSICs are subject to a deadline of January 15, 2026, for utilization. This measure is designed to prevent importers from stockpiling permits as a means of manipulating supply and artificially inflating prices.
The import schedule is also carefully calibrated to avoid coinciding with the domestic harvest. This prevents a flood of cheaper imports from depressing prices for local farmers and undermining their livelihoods.
