Onion Farmgate Prices Threatened by Smuggling, Warns SINAG

The agricultural sector is facing a looming crisis as the Samahang Industriya ng Agrikultura (SINAG) raises alarms over the potential plummet in the farmgate prices of onions, attributed to unchecked smuggling. According to SINAG chairman Rosendo So, current farmgate prices for red onions stand at P26 to P28, while white onions are at P23 to P25. However, these prices could dramatically fall to P10 to P15 if measures against smuggling are not effectively enforced.

“The issue of smuggled onions, which are even sold online, and the influx of smuggled onions need vigilant monitoring. We are genuinely concerned that the farmgate price might drop to P10 to P15,” So expressed, highlighting the urgent need for action to protect local farmers from the adverse impacts of smuggling.

This warning comes amid varying retail prices for onions across different platforms. The Department of Agriculture’s daily price monitoring has indicated that red onions can sell for as low as P90 per kilo, and white onions for P60 per kilo. Meanwhile, at the Kadiwa market in Quezon City, red onions are available at P50 per kilo, and white onions at P35 per kilo, suggesting a significant markup from farmgate to retail.

In response to the potential threat to local onion production, Assistant Secretary Arnel De Mesa of the Department of Agriculture noted an increase in onion cultivation following the high prices the crop previously commanded. To support the sector, the Bureau of Plant Industry, along with other agencies, is working to establish market linkages to ensure the efficient distribution of onions to various markets, including those in Southern Tagalog and other areas in need.

These efforts aim to stabilize the onion supply chain, from farmgate to consumer, and shield local farmers from the economic pressures posed by smuggling, thereby sustaining the agricultural industry’s growth and resilience.